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Currency Meaning: Definition, Examples, and Translations

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currency

[ˈkʌrənsi ]

Definitions

Context #1 | Noun

money

Currency is a system of money in general use in a particular country. It can be paper money, coins, or digital currency.

Synonyms

cash, legal tender, money.

Which Synonym Should You Choose?

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Word Description / Examples
currency

Use this term when referring to the system of money in general use in a particular country or during financial discussions.

  • The exchange rate between the US dollar and the euro fluctuates daily.
  • The cryptocurrency market has introduced a new form of digital currency.
money

Use this term as a general reference to any form of currency or medium of exchange, suitable for everyday conversation.

  • She decided to save her money for a rainy day.
  • Money can't buy happiness, but it can make life easier.
cash

Use this term when referring to physical money such as coins or banknotes, often in situations where immediate payment is required.

  • The store offers a discount if you pay in cash.
  • I need to withdraw some cash from the ATM.
legal tender

Use this term in formal or legal contexts to refer to money that must be accepted if offered in payment of a debt.

  • Only the national currency is considered legal tender for paying taxes.
  • Coins and banknotes are recognized as legal tender within this jurisdiction.

Examples of usage

  • The US dollar is the official currency of the United States.
  • I need to exchange my currency for euros before my trip to Europe.
Context #2 | Noun

foreign exchange

Currency can also refer to the exchange of money from one country's currency to another. This is often done at banks or currency exchange centers.

Synonyms

exchange market, foreign exchange, forex.

Which Synonym Should You Choose?

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Word Description / Examples
currency

Use 'currency' to refer to the money that is used in a particular country. It is also used to describe the concept of money in general.

  • The euro is the official currency of many European countries.
  • Cryptocurrency is a digital form of currency.
foreign exchange

Use 'foreign exchange' to describe the process of exchanging one currency for another, often in the context of international business or travel. It is also used to refer to the entire system of trading currencies.

  • I need to do some foreign exchange before travelling to Japan.
  • He works in foreign exchange and deals with different currencies every day.
forex

Use 'forex' as an informal and abbreviated way to refer to the foreign exchange market. It is popular in the context of trading and investment.

  • She has been trading forex for over a decade.
  • Forex brokers offer various platforms for currency trading.
exchange market

Use 'exchange market' when discussing the marketplace where currencies are traded. This term is more formal and often used in economic and financial contexts.

  • The exchange market has seen increased volatility this quarter.
  • Experts predict a downturn in the exchange market.

Examples of usage

  • She works in currency trading, buying and selling different currencies.
  • The currency market is highly volatile and can change rapidly.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

History

  • Early forms of currency included barter systems where people exchanged goods directly, like trading grain for livestock.
  • The first coins were minted in Lydia (modern-day Turkey) around 600 BC, providing a standardized medium of exchange.
  • Paper currency started in China during the Tang dynasty (618-907 AD) and became widely adopted with the Song dynasty.

Economics

  • Currencies can be categorized as fiat, which means they have value because the government maintains it, unlike commodity money.
  • Exchange rates determine how much one currency is worth in terms of another, impacting international trade.
  • Inflation can devalue currency, which means it loses purchasing power over time.

Technology

  • In recent years, cryptocurrencies like Bitcoin have emerged as digital alternatives to traditional currencies, sparking debates about the future of money.
  • Blockchain technology underlies many cryptocurrencies, offering secure and transparent transaction methods.
  • Digital wallets allow consumers to store and use currencies electronically, making transactions faster and more convenient.

Culture

  • In various cultures, different items have served as currency, from shells and salt to precious metals and modern banknotes.
  • Many works of art explore the themes of currency and value, reflecting societal attitudes toward money and wealth.
  • Cultural differences in financial practices can influence how people perceive and use currency in their daily lives.

Origin of 'currency'

Main points about word origin

  • The word 'currency' comes from the Latin term 'currens', meaning 'to run' or 'flow', relating to the flow of money.
  • Related to the word 'current', which both suggest movement, indicating how money circulates in an economy.

The word 'currency' originated from the Latin word 'currens', which means 'to run' or 'to flow'. This reflects the fluid and constantly changing nature of money in different economies. Currency has evolved over centuries from bartering to the use of coins and paper money to digital transactions in the modern world.

Word Frequency Rank

Ranking #3,049, this word is part of upper-intermediate vocabulary. While not among the most basic terms, it appears often enough to be valuable for advanced communication.