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National Currency

Categories: International, Forex

A national currency, also known as fiat currency, is a nation’s currency: their chosen objects that are traded, representing monetary value, issued by a country’s monetary authority (probably the central bank, if the country has a central bank).

Go figure: the U.S.’s national currency is the U.S. dollar. Bitcoin? Not a national currency—it’s a vagabond-of-a-currency in comparison.

What about the euro? Yep, also a national currency, since it’s a currency issued by countries’ central banks to the people. A national currency can span nations, like the euro.

Find other enlightening terms in Shmoop Finance Genius Bar(f)