Hello and Everyone
Currency is a part of life because it is a form of money that we use in our lives. Every country has its currency and tries to make it stronger, more valuable, and acceptable in the world. Although most of the currencies are calculated against US dollars their value is determined based on how strong their value is against the dollar. There is a proper market where currency value is tracked properly. It is also a form of business that many people do and earn money from price fluctuation. In any country usually, citizens are not bothered about the little fluctuation in the currency value on the international market it is an important component.
For example, if I talk about India it has got INR as currency. If we do the conversion of INR against US dollars, the value is almost 83 INR at present. We cannot say the exact value all the time because it keeps on fluctuating but roughly we know that one USD is equal to 83 INR. Every country uses one currency and they do not have multiple currencies because that is not the right way. Also for any country citizens need the currency for their country unless they are doing something specifically where panic is specific foreign currency is required. Most people go for currency conversion when they are traveling outside the country and they convert the currency of the country they are going to visit.
There are many forms of currencies worldwide and some of them are very popular. For example, we knew that it was USD, GBP, YEN, etc. Inr is the native currency for India and similarly, USD is the currency for America. It is the United States dollar however there are multiple countries following the dollar as a currency but they have different values. For example, Australia has its currency known as AUD and its value is not equal to USD similarly Singapore has SGD as its currency and the value is again not equal to USD but it is pretty much good.
The value of the currency is determined by the international market and the inflation. By strong currency means the country has a strong economy also and if the currency is devalued, it's directly connected with economic growth. We know that some countries like Venezuela Nigeria and Zimbabwe are going through tough times because of the currency devaluation and this is also because their economy is not much stronger. The economy is driven by the government so what policy they make for foreign countries related to trade and imports etc plays an important role. Currency devaluation is not at all good for any country but the right policy has to be in place to keep the currency value right.
So as I mentioned there are multiple currencies in the world and unless you are a world traveler you don't need to keep multiple currencies with you. Now technology is advanced and banks also provide the option to use their debit or prepaid cards etc to spend money in particular currencies. Of course, we cannot ignore the importance of cryptocurrency where it is not limited geographically and we can use it anywhere in the world provided we have the required infrastructure and some businesses are accepting it.
This is my participation post for Initiative: March Monthly Prompt
Check out the above post if you are interested in participating in this initiative every day there is a different topic that is fun and allows us to share our thoughts.
Thank you so much
Stay Safe