Routledge Dictionary of Economics, Second Edition
The official money currently circulating in a country and available for immediate use as a medium of exchange. It can take the form of coins, BANKNOTES and, in a broader sense, BANK DEPOSITS. Currencies are called by various names, the most popular being dollar, franc and kroner.
The value of a currency is regarded as an overall indicator of world opinion about that country’s economy. Apart from the use of prudent fiscal and monetary policies to boost confidence in a currency, there are other ways of making a currency attractive. A central bank can produce beautiful banknotes, offer CONVERTIBILITY into another currency or raise its interest rates to encourage foreign holdings of that currency. A few small countries—Luxemburg, Panama and Liechtenstein—do not have their own currencies.
See also: coinage
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