Foreign Money
Definition: Currency, is a system of money in general use in a particular country at a specific time.
Below you will find a list of money in use for each country around the world, as well as the corresponding three-character alphabetic, and the three-digit numeric ISO 4217 code for each currency.
Notes:
The 3-letter alphabetic currency code is composed of the ISO 3166 two-letter country code plus an extra character (in general the first letter of the country's
official currency) to denote the unit.
The responsible authority for the domestic currency is usually the national
Central or Reserve Bank.
Major trading currencies
In many countries around the world, the Euro and the US Dollar are the preferred foreign currencies. Other major trading currencies are: Japanese Yen (JPY), British Pound Sterling (GBP), Australian Dollar (AUD), Canadian Dollar (CAD), Swiss Franc (CHF), Chinese Yuan (Renminbi; CNY), Swedish Krona (SEK), New Zealand Dollar (NZD), and the Mexican Peso (MXN).
The U.S. Dollar and the Euro are important international reserve currencies. The US Dollar is the official currency in the US and its territories; it is also used in several countries outside the USA as the legal tender. Countries in which the US Dollar is the official currency: East Timor, Ecuador, El Salvador, Federated States of Micronesia, Marshall Islands, Palau, Panama, and Zimbabwe. The US dollar is pegged by 27 currencies.
In 19
countries of the European Union, the Euro is the sole legal tender. Additionally, Andorra, Monaco, San Marino, and the Vatican City use the Euro as their official currency and issue their own coins. Twelve currencies are pegged to the Euro at a fixed exchange rate.
Exchange Rates
The exchange rate
is the rate for how much money you get for your bucks or euros. In expert-speech, it is the value of one currency for the purpose of conversion to another. There you go.
The exchange rate is changing more or less on a day to day base, but not much.
To get a feeling about how much your money is worth in a foreign country read up on the latest currency exchange rates, for that you may use a Currency Converter app or a service like
x-rates.com.
Currency Tips for Travelers! [ show ]
If you are traveling to a foreign country, sooner or later you have to exchange your money into local currency.
Most of the time it is better to change your money in the foreign country than in a bank of your homeland because the local banks offer most of the time a better exchange rate. To be on the safe side, you may ask your friends who were there, find a forum online or ask your travel agency.
Traveler's check fell out of fashion some times ago. Today the easiest and cheapest way to receive foreign money is by using a local ATM (automated teller machine). The exchange rates are usually much better than what you can get from a local moneychanger. However, in some countries, the local bank will charge you an extra fee for your withdrawal.
Using a credit card at the ATM is only good for emergencies because it comes with a very high fee.
What can I get for this funny bills?
What can you get for your newly acquired money? Actually, almost everything money can buy.
But what is it worth?
What is the purchasing power of that money? To get an answer, you have to compare the prices of goods and services with the prices in your country. For instance, how much is a cab ride, an average dinner, the price for a three-star hotel room, and so on, compared to the costs in your country?
The purchasing power may vary a lot from country to country. To know what your money is worth in a foreign country have a look at the
Big Mac Index, it shows the price of a Big Mac in various countries in $ US.
Or you have a look at this list of countries:
Classification of Economies of Countries, countries with a lower Gross National Income (GNI), are likely to be cheaper than countries with a high GNI.
