International Currencies and Their Codes

Different countries in the world have their own currencies and they can be in the form of paper, coins or bank notes. It is interesting to know that each currency has a code that helps to distinguish it from other currencies. The codes of currency play a significant role as they assist in international trade and exchange of currencies. The currencies of different countries have a unique 3 digit code, which is set according to ISO 4217 standard. The first two characters in the code are set as per ISO 3166-1 standard and the last digit is a derivative of the name of the currency. For example INR is the code of Indian currency which stands for Indian Rupee where 'R' is the derivative of Rupee.

These codes set a standard for trade and currencies are exchanged according to the predominant rates. US Dollar, Euro, Pound Sterling, and Yen are the major international currencies. International trade cannot be carried out without the currency codes. These facilitate other transactions as well. Some important facts about international currencies are as follows:

• Names of some currencies are same in different countries like Dollar is the name of currency of USA, Australia and Canada. These countries are thus distinguished by their codes.
• Currency of one country can be used by another country as a legal tender for payment of debts or as a method of making other payments.
• Certain currencies like Euro can be used across several countries of the world. The Euro is used in 16 countries out of the 37 countries of Europe.
• The currencies of countries that are not independent like Cook Island dollar, Jersey Pound do not have their distinct codes.
• Every country has a main currency unit which can be further subdivided into smaller units like paisa of the Indian rupee.

The international currencies and their codes are very important because they assist in the smooth transactions and trade. Person carrying trades in two countries say India and Australia must be aware about the currency and codes of both the countries. With increasing trade activities between countries, the significance of currencies and their codes is gaining with each passing day.

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