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Forex Glossary

Currency Codes

Currency codes are essential tools that help people identify different currencies used around the world.

Each code consists of three letters that represent a specific currency, making it easy to distinguish one from another. 

By using these codes, businesses and individuals can communicate more effectively about money, ensuring clarity and reducing errors in transactions. 

Currency codes serve as the universal language of money, streamlining international commerce and finance. Read on to understand more about currency code.

What is currency code? 

A currency code is a three-letter abbreviation used to represent a specific currency.

These codes follow a standardized format established by the International Organization for Standardization (ISO) under the ISO 4217 standard.

Each code uniquely identifies a currency, making it easier for people and businesses to communicate and conduct transactions globally.

For example, the currency code for the United States Dollar is USD, while the Euro code is EUR.

Currency codes play a crucial role in international trade, banking, and finance, as they help to eliminate confusion that can arise from using different names for the same currency or from similar names for different currencies.

History of Currency Code

In the early 20th century, international trade began to flourish. Traders and businesses needed a way to communicate about currencies without confusion. 

They used names and symbols, but this method became inefficient as the number of currencies increased. 

Countries started creating their currencies, each with different values and features. This complexity led to mistakes in transactions and misunderstandings in trade.

The International Organization for Standardization (ISO) took a significant step in 1973 by introducing ISO 4217, the standard that defines currency codes. 

This organization aimed to promote international cooperation and standardization across various fields. ISO 4217 provided a clear system for identifying currencies with three-letter codes.

Over the years, ISO 4217 evolved. The organization updated the list of currency codes to reflect changes in the global economy

New currencies emerged, and some old ones became obsolete. The ISO committee worked diligently to keep the codes accurate and relevant. 

For instance, when countries transitioned to a new currency, such as when several European nations adopted the Euro (EUR) in 2002, ISO updated the codes accordingly.

Structure of Currency Codes

Currency codes are three-letter abbreviations that help us identify different types of money from around the world.

They follow a specific format that makes it easy to understand which currency is being referred to.

The first two letters usually represent the country. Like, “US” stands for the United States.

The third letter shows what kind of currency it is. Also, “D” represents the dollar.

So, when you put them together, you get “USD,” which means United States Dollar. This simple structure helps everyone recognize currencies quickly, especially in business and trade.

Importance of Currency Codes

Currency codes are very important for several reasons:

1. Clear Understanding

They help avoid confusion when people talk about money from different countries. Instead of saying “dollar,” which could mean dollars from many places, a code like “USD” clearly tells you it’s the United States Dollar.

2. Speed in Transactions

Using currency codes makes it easier and faster to process payments, especially online. It reduces the chances of making mistakes.

3. Global Trade

Businesses around the world use currency codes to keep track of money when they buy and sell things in different countries. This helps them understand how much money they will get or pay in their currency.

4. Good Communication

Codes ensure that everyone understands exactly which currency is being discussed, making business conversations smoother.

5. Easier Data Management

In computers and databases, using shortcodes instead of long names for currencies saves space and helps keep everything organized.

What Are Currency Codes in Forex?

In Forex or foreign exchange, currency codes are very important. Forex is the market where people buy and sell different currencies. 

When trading currencies, traders use these codes to make it clear which money they are talking about.

For example, if someone wants to trade euros for US dollars, they would say “EUR/USD.” Where:

  • “EUR” is for the euro.
  • “USD” is for the United States dollar.

This means how many dollars you need to buy one euro. Currency codes make it easy for traders to understand the value of different currencies when they are buying or selling them.

Currency Codes by Country

Territory Currency Code (ISO 4217) Currency Name
Albania ALL lek
Algeria DZD dinar
Angola AOA kwanza
Argentine ARS peso
Armenia AMD dram
Australia AUD dollar
Austria EUR euro
Azerbaijan AZN manat
Bahrain BHD dinar
Barbados BBD dollar
Belarus BYN rouble
Belgium EUR euro
Bermuda BMD dollar
Bolivia BOB boliviano
Bosnia and Herzegovina BAM konvertibilna marka
Botswana BWP pula
Brazil BRL real
Bulgaria BGN lev
Cabo Verde CVE escudo
Cambodia KHR riel
Cameroon XAF CFA franc BEAC
Canada CAD dollar
Cayman Islands KYD dollar
Chad XAF CFA franc BEAC
Chile CLP peso
China, People’s Republic CNY yuan
Colombia COP peso
Congo, Democratic Republic  CDF franc
Congo XAF CFA franc BEAC
Costa Rica CRC colon
Croatia HRK kuna
Cyprus EUR euro
Czech Republic CZK koruna
Denmark DKK kroner
Dominican Republic DOP peso
Ecuador USD dollar
Egypt EGP pound
El Salvador USD dollar
Equatorial Guinea XAF CFA franc BEAC
Estonia EUR euro
Ethiopia ETB birr
Fiji FJD dollar
Finland EUR euro
France EUR euro
Gabon XAF CFA franc BEAC
Georgia GEL lari
Germany EUR euro
Ghana GHS cedi
Gibraltar GIP pound
Greece EUR euro
Greenland DKK Danish krone
Guatemala GTQ quetzal
Guernsey, Channel Islands GBP British pound sterling
Guyana GYD dollar
Honduras HNL lempira
Hong Kong SAR HKD dollar
Hungary HUF forint
Iceland ISK krona
India INR rupee
Indonesia IDR rupiah
Iraq IQD dinar
Ireland EUR euro
Isle of Man IMP pound
Israel ILS shekel
Italy EUR euro
Ivory Coast (Cote d’Ivoire) XOF CFA franc BCEAO
Jamaica JMD dollar
Japan JPY yen
Jersey, Channel Islands GBP British pound sterling
Jordan JOD dinar
Kazakhstan KZT tenge
Kenya KES shilling
Korea, Republic of KRW won
Kosovo EUR euro
Kuwait KWD dinar
Kyrgyzstan KGS som
Lao PDR LAK kip
Latvia EUR euro
Lebanon LBP pound
Libya LYD dinar
Liechtenstein CHF franc
Lithuania EUR euro
Luxembourg EUR euro
Macau SAR MOP pataca
Madagascar MGA ariary
Malawi MWK kwacha
Malaysia MYR ringgit
Maldives, Republic of MVR rufiyaa
Malta EUR euro
Mauritania MRU ouguiya
Mauritius MUR rupee
Mexico MXN peso
Moldova MDL leu
Mongolia MNT tugrik
Montenegro EUR euro
Morocco MAD dirham
Mozambique MZN metical
Myanmar MMK kyat
Namibia, Republic of NAD dollar
Netherlands EUR euro
New Caledonia XPF CFP franc
New Zealand NZD dollar
Nicaragua NIO cordoba oro
Nigeria NGN naira
North Macedonia MKD denar
Norway NOK kroner
Oman OMR rial
Pakistan PKR rupee
Palestinian territories ILS, USD, and JOD shekel, dollar, and dinar
Panama PAB and USD balboa and dollar
Papua New Guinea PGK kina
Paraguay PYG guarani
Peru PEN nuevo sol
Philippines PHP peso
Poland PLN zloty
Portugal EUR euro
Puerto Rico USD dollar
Qatar QAR riyal
Romania RON leu
Russian Federation RUB ruble
Rwanda RWF franc
Saint Lucia XCD dollar
Saudi Arabia SAR riyal
Senegal XOF CFA franc BCEAO
Serbia RSD dinar
Singapore SGD dollar
Slovak Republic EUR euro
Slovenia EUR euro
South Africa ZAR rand
Spain EUR euro
Sri Lanka LKR rupee
Swaziland SZL lilangeni
Sweden SEK krona
Switzerland CHF franc
Taiwan TWD dollar
Tajikistan TJS somoni
Tanzania TZS shilling
Thailand THB baht
Timor-Leste USD US dollar
Trinidad And Tobago TTD dollar
Tunisia TND dinar
Turkey TRY lira
Turkmenistan TMT manat
Uganda UGX shilling
Ukraine UAH hryvnia
United Arab Emirates AED dirham
United Kingdom GBP sterling
United States USD dollar
Uruguay UYU peso
Uzbekistan, Republic of UZS soum
Venezuela VEF bolivar
Vietnam VND dong
Zambia ZMW kwacha
Zimbabwe ZWD dollar

Conclusion

Knowing currency codes is crucial for navigating the global economy, facilitating international trade, and ensuring accurate financial transactions. 

These codes not only provide a standardized method for identifying currencies but also play a significant role in various sectors, including finance, travel, and commerce. 

By familiarizing yourself with these codes, you can enhance your financial literacy and engage more effectively in global markets.

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