Currencies of the World

What is a Currency?

Do you know that the word “currency” is derived from the Latin word “currere”, meaning ‘to run’ or ‘to flow’? A currency (i.e. money) serves as a medium of exchange for goods and services within a country’s borders. Currencies are issued by all central banks of the world in the form of paper notes and coins. However, many countries do not have their own central bank and thus adopt a foreign or mutual currency. A country’s currency can (usually) be traded against another country’s currency at dynamic rates on the foreign exchange (FX) market.

Countries of the World

The most accepted definition of a ‘country’ is a sovereign state whose borders are fully acknowledged by every other accepted country of the world. Currently, there are 194 fully recognised countries in the world, plus three partially acknowledged sovereign states: Kosovo, Palestine and Taiwan. In addition to the world’s 197 countries, there are also 55 territories and dependencies. However, there are currently only around 160 official national currencies in global circulation.

Countries Without A Currency

Photo credit: Flickr/CC BY-NC-ND 2.0

Many countries do not have a currency of their own for political and/or economic reasons. Thus, these countries either adopt a foreign or mutual currency for official use. For instance, 20 member states of the EU use the Euro, as well as two non-member countries and 14 overseas territories. The US dollar is currently adopted in the USA, 9  sovereign states, and 8 overseas (including 3 non-US) territories as official currency. The West African CFA franc (XOF) is currently used by 8 countries in West Africa. Similarly, the Central African CFA franc (XAF) has so far been adopted by 6 independent African states. The East Caribbean dollar (XCD) is an official currency that is currently shared by 8 Caribbean island nations.

Countries and Currencies

Here’s a complete list of the Countries and Territories of the world and their currencies :

Header image credit: Flickr/CC BY-SA 2.0