Okuzeka
Economics vocabulary · Trade and Exchange Rates

Currency

Meaning in economics, with examples

/ˈkʌrənsi/nounCore term

In economics, currency means: The system of money used in a country, such as the lira, the euro or the dollar; foreign currency means money from other countries.

In Turkish: para birimi, döviz, ulusal para

How it is used

Used constantly in news on exchange rates: the local currency, a strong or weak currency, the currency fell against the dollar. Hard currency means a widely trusted currency such as the dollar or the euro. The plural is currencies.

Example sentences

  1. The currency lost 5% against the dollar in a single week.

  2. Many firms borrow in foreign currency but earn in local currency.

Common collocations

  • local currency
  • foreign currency
  • a weak currency
  • currency crisis
  • hard currency
  • exchange rateThe price of one currency expressed in another, for example how many Turkish lira you need to buy one US dollar or one euro.
  • depreciationA fall in the value of a currency against other currencies under a floating exchange rate, driven by market forces rather than an official decision.
  • appreciationA rise in the value of a currency compared with other currencies, so that it buys more foreign money than before; the opposite of depreciation.
  • dollarisationThe use of the US dollar or another foreign currency instead of, or alongside, the national currency for saving, pricing or borrowing.
  • foreign exchange reservesAssets in foreign currencies, such as dollars and euros, held by a central bank to pay for imports, repay foreign debt or support the national currency.

More terms: Trade and Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.