Money & Currency Around The World (Finance for Kids age 8+)
Money that is used in a particular country is called currency. Every country in the world has its own currency. The only exception is in the Eurozone. The Eurozone is a group of countries located in Europe. Members of this group are not using each country’s own currency. Instead, they use a currency named Euro. Euro currency is accepted in all Eurozone countries.
Currently, there are 19 countries joining the Eurozone : Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The Euro currency was designed to increase trade among Eurozone members, and make it easier for people to move between these countries.
These are some currencies across the world.
- The United States of America uses the US dollar, which is the most popular currency in the world.
- China’s currency is yuan.
- Australia, Singapore, and Canada also use dollars, but not the United States dollar. Australia uses Australian Dollar, Singapore uses Singapore dollar, and Canada uses Canadian dollar.
- Swiss using franc.
- The British are located in Europe, but they are not using Euro currency. Instead, they use British Pound Sterling.
- Indonesia uses rupiah.
- Thailand uses baht.
- India uses rupee.
- Russia uses ruble.
- Korea uses won.
- And so many more currencies across the world.
If you want to buy things in a country, you need to use that country’s currency. So if you live in Singapore, which uses Singapore Dollar, and you go to Indonesia, which uses Rupiah, you need to trade your Singapore Dollar with Indonesian Rupiah.
Trading currency can be done on currency exchange, or money changer. Each currency value is different. For example, one Singapore dollar can be traded to 10 thousand Indonesian rupiah. This currency value difference is known as exchange rate.
The price of the same item can be different numbers when using different currencies. For example, a chocolate bar in Singapore costs 1 Singapore dollar. The same chocolate bar in Indonesia costs 10 thousand Indonesia Rupiah. The number is different, but the value of money is actually the same, since you can trade 1 Singapore Dollar with 10 thousand Indonesian Rupiah.
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