Different types of currency around the world

Send money abroad

Money talks. It always has, but in this day and age, it’s become more important for money to be “translated.”

In a way, you can consider money as a universal language, with hundreds of dialects being the different currencies around the world. That’s why “translation” is so important: it allows money to continue functioning as our universal language.

In everyday terms, it’s what allows dollars sent from the US to arrive in Nigeria as naira. With different types of currency, it becomes possible for people around the world to seamlessly buy and sell goods and services.

Any global traveler – or anyone just looking to better manage their money – should know a little bit about why and how we have so many different types of currency around the world. If you’re curious about the currencies that we use and how they all interact, this is the article for you.

How many currencies are there in the world today?

According to the ISO 4217 standard (which assigns internationally recognized three-letter codes to represent each currency), there are around 180 different legal-tender currencies in circulation worldwide.

While that figure covers official national currencies in use, the number can increase when factoring in regional, complementary, or locally issued parallel currencies. At first glance, keeping track of so many forms of money may seem complex and overwhelming. However, there are a few factors we’ll discuss in a bit that make managing different currencies easier.

Different forms of currency explained

While people rely on many different forms of money across the globe, not all currencies of the world are made equal. Money can be classified into distinct categories:

Fiat money is currency that has no intrinsic value and is not backed by any physical commodity. Its value comes solely from public trust and the authority of a government that declares it legal tender for all debts. Most national currencies, like the US dollar, are classified as fiat money.

Commodity-based currency is money directly tied to a physical good, such as gold, silver, or oil, which gives the currency intrinsic value. Holders can theoretically exchange the currency for a fixed quantity of the underlying commodity – a practice that was common before the 20th century.

Digital or electronic money refers to any form of money that exists only in digital form, used primarily for electronic transactions. It still represents fiat currency, not a new or separate type of money. Any dollars in bank accounts or cash converted for use in mobile wallets fall under this category.

Cryptocurrency is a decentralized digital currency that uses cryptography and blockchain technology to secure transactions. It’s not issued or backed by any government or central authority, though it’s still considered money – albeit one with legally gray areas in terms of use.

Popular world currencies

Some global currencies are used more widely than others. For the longest time, the US dollar (USD) has been widely used as the “global currency” and is often considered a safe reserve.

The US dollar remains the global reserve currency not just due to past agreements, but because of:

Enduring trust in US institutions
Global dependence on dollar-based trade and finance
Lack of viable large-scale alternatives

While its dominance has slightly eroded over the past two decades (from around 70% in 1999 to around 59% in 2024¹), no other currency currently offers the full package of liquidity, trust, scale, and accessibility that the USD does. If you’re looking for the best way to transact globally, USD is your best currency to use.

That doesn’t mean that the US dollar holds a monopoly on global transactions. While around 58.9%² of global foreign exchange reserves are held in US dollars as of Q2 2024, the euro (EUR) comes in second at nearly 20%. Backed by the European Union and used by 20 countries³, the euro exerts considerable influence across both regional and international markets.

Here’s a list of world currencies most commonly used internationally:

Rank	Currency name	Country/Region	ISO code	Symbol
1	US Dollar	United States (also used broadly in global trade & reserves)	USD	$
2	Euro	Eurozone countries (e.g., Germany, France, and Italy)	EUR	€
3	Japanese Yen	Japan	JPY	¥
4	Pound Sterling	United Kingdom	GBP	£
5	Australian Dollar	Australia	AUD	A$ or $
6	Canadian Dollar	Canada	CAD	C$ or $
7	Swiss Franc	Switzerland	CHF	Fr or CHF
8	Chinese Renminbi (Yuan)	China	CNY	¥ / 元
9	Hong Kong Dollar	Hong Kong	HKD	HK$
10	Singapore Dollar	Singapore	SGD	S$

While these currencies are best used in their country and region of origin, they still hold value outside of those territories. Their worth can be determined through exchange rates and standard methods of valuation.

Less common but interesting currencies

One thing that most commonly used currencies have in common is that they’re tied to economically significant territories or nations. However, in some parts of the world, less-used units of currency can still remain central to everyday transactions – perhaps not because of their international value, but because of their local convenience.

Some of these currencies include:

Eastern Caribbean Dollar (XCD)

The Eastern Caribbean dollar is used by eight members of the Organization of Eastern Caribbean States (OECS): Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.

The XCD replaced the British West Indies dollar in 1965. Since 1976, it has been pegged to the US dollar at a fixed rate.⁴ This peg gives XCD stability in foreign trade and investment, especially since many of the member economies are small and exposed to external shocks like tourism and import dependency.

Fijian Dollar (FJD)

The Fijian dollar is the national currency of Fiji. The original Fijian dollar existed briefly from 1867 to 1873⁵, then was replaced. The modern FJD has been in continuous use since January 15, 1969⁶, when it replaced the Fijian pound.

Until 2013⁷, banknotes and coins featured Queen Elizabeth II. Since then, Fiji has replaced the monarch’s portrait with native flora and fauna designs. This change remarks how currency can become a cultural statement – in this case, replacing colonial imagery with something that better reflects Fiji’s identity.

Samoan Tala (WST or “tālā”)

The Samoan tala is the currency of Samoa. Samoa used the New Zealand pound/coins for a time, but after gaining independence, it introduced its own coins and notes. In 1967⁸, Samoa officially replaced the New Zealand pound with the tala.

Samoan banknotes have been recognized for their design. A notable example is the vibrant yellow 20 tala bill featuring Sopoaga Falls and a bird (manumea). Samoa is also one of the few countries to issue polymer bills, an effort made toward environmentally conscious design choices.

Mozambican Metical (MZN)

The metical is the currency of Mozambique. As of June 2024⁹, Mozambique introduced a new series of metical banknotes and coins, updating the designs. Its circulation has also grown by 6.5%¹⁰ year-on-year, reaching approximately 69.4 billion meticais in May 2025.

Because of high inflation over time, Mozambique redenominated the currency on July 1¹¹, 2006, dropping three zeros (i.e., 1 new metical = 1,000 old meticais). This redenomination was done to try to simplify the currency, restore public confidence, and make transaction sizes more manageable.

Why are there so many currencies?

While this may all be interesting to the average spender, the question remains: why exactly do we bother with using so many currencies? There are several reasons that explain why we don’t have a central currency, but three can be considered as the most important reasons:

Political sovereignty and national identity:
A currency is a symbol and instrument of national sovereignty. By maintaining their own currency, governments assert control over monetary policy, seigniorage (the profit from issuing money), and national identity.

Economic considerations:
Different countries have different economic structures, levels of development, exposure to shocks, and policy preferences. A “one-size-fits-all” monetary policy can’t adequately respond to such diversity, as countries often want to adjust how their money works without being tied to another country’s decisions.

Historical continuity:
Many currencies have been inherited from colonial systems, historical unions, or past political arrangements. Once established, they’re hard to change – and any attempt to do so is going to cost more time, money, and effort than countries are willing or able to invest.

According to studies on optimum currency areas (OCA), countries are more likely to benefit from sharing a common currency when they have sufficient labor mobility, mechanisms for fiscal transfers, and synchronized business cycles. However, many authors conclude that many countries worldwide don’t satisfy those criteria¹² well enough for a global currency.

This doesn’t mean a centralized currency is entirely unworkable. The euro is a rare example of a singular currency being used by different countries, though that system has also faced persistent issues.

Different forms of money beyond cash

Beyond the variety of national currencies, the very concept of money has gone through a fair bit of change from bills and notes. Cash (or what counts as coins and banknotes) may still be a commonly used way to spend money, but technology has expanded the ways we can store, transfer, and spend value.

Three other ways to manage money aside from physically exchanging it include:

Electronic transfers

Electronic transfers have long been handled by banks, giving people a secure way to move money between accounts. With the adoption of mobile banking, it’s now easier to manage payments straight from your phone. Beyond traditional banks, other cash transfer services and platforms have also popped up in this space to offer even more convenient and flexible options for sending and receiving money.

Digital currencies

Government-backed digital currencies like Central Bank Digital Currencies (CBDCs) are being explored in countries like Nigeria (eNaira) and China (e-CNY). Alongside this, cryptocurrencies are seeing slow yet steady adoption¹³, with many users hoping they could one day serve as an alternative to fiat money – though only time will tell if that vision becomes reality.

Mobile wallets

Mobile wallets allow users to store, send, and receive money using a mobile device like a smartphone. They're especially important in emerging markets where access to traditional banking is limited. They play a key role in financial inclusion and the growth of digital payments worldwide. Two examples are M-PESA in Africa and GCash in the Philippines.

How knowing about currencies helps travelers and senders

So now that we’ve talked about currencies around the world, why does this matter to the average person in the first place?

For money to keep talking, you need to understand how its different dialects work. By understanding the systems, the context, and the reasons why different types of foreign currency work the way they do, it becomes easier for you to manage and use them.

For example, travelers can easily navigate expenses abroad by understanding how the currency of where they’re from interacts with the currency of where they are. This can be as simple as looking up exchange rates. Or it can mean understanding non-cash-based systems that might be common in their destination.

For those sending money abroad, understanding currencies is just as important. International transfers depend on exchange rates and transaction fees, and knowing how these work can help you make smart choices. Services like BOSS Money, for instance, support transfers in dozens of currencies and provide a transparent rate, so you always know exactly what’s being sent and received.

At the end of the day, the more you understand how currency works, the easier it becomes to use money confidently.

Conclusion

To sum it up: there are hundreds of currencies in the world, each with its own history and meaning. But the most important thing isn’t the name or symbol, but that your money retains its value during the transfer.

Understanding how currencies work and how they interact can strengthen your financial literacy. This also allows you to speak the language of money more easily – and ensure that your finances retain their value, even across different “conversations.”

And when it comes to moving money internationally, reliability matters. That’s where BOSS Money comes in. With BOSS Money, your transfers arrive quickly, safely, and at a fair rate.

Sources: all third party information obtained from applicable website as of September 30, 2025

https://www.voronoiapp.com/economy/The-Worlds-Top-Reserve-Currencies-as-of-Q1-2024-2373
https://www.omfif.org/2024/10/how-gradual-decline-in-dollar-dominance-could-quicken/
https://european-union.europa.eu/institutions-law-budget/euro/countries-using-euro_en
https://www.investopedia.com/terms/x/xcd-eastern-caribbean-dollar.asp
https://www.globalexchange.hk/en/currencies-of-the-world/fiji-islands-dollar
https://www.banknoteworld.org/fiji/#:~:text=Fiji's%20official%20currency%20is%20the,Elizabeth%20II%20by%20Pietro%20Annigoni
https://www.investopedia.com/terms/f/fjd.asp
https://www.investopedia.com/terms/forex/w/wst-samoan-tala.asp
https://www.cranecurrency.com/news-insights/the-story-behind-the-new-metical-banknotes-in-mozambique/
https://www.aman-alliance.org/Home/ContentDetail/93083
https://www.investopedia.com/terms/forex/m/mzm-mozambique-metical.asp
https://arxiv.org/abs/2112.02063
https://coinlaw.io/cryptocurrency-adoption-by-country-statistics/

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