Currency: meaning, definitions and examples

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.

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.

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.

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.

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.

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.

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.

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.