What is ‘National Currency’
The currency or legal tender issued by a nation’s central bank or monetary authority. The national currency of a nation is usually the predominant currency used for most financial transactions in that country.
Explaining ‘National Currency’
A handful of national currencies such as the U.S. dollar and the euro have achieved global status as reserve currencies and are extensively used in international trade transactions. The euro has supplanted the national currencies of a number of nations that comprise the European Union. The national currencies of some countries such as the United Arab Emirates are pegged or fixed to the U.S. dollar.
Further Reading
- Is Europe an optimum currency area? – ideas.repec.org [PDF]
- The end of national currency – heinonline.org [PDF]
- Globalization without global money: the double role of the dollar as national currency and world currency – www.tandfonline.com [PDF]
- National money as a barrier to international trade: The real case for currency union – pubs.aeaweb.org [PDF]
- Currency Internationalization as a National Competitive Strategy: US Dollar's Empirical Evidence——And a Study on the Issue of Renminbi [J] – en.cnki.com.cn [PDF]
- Currency internationalization: an overview – papers.ssrn.com [PDF]
- Trust in the Euro: Exploring the Governance of a supra-national Currency – www.tandfonline.com [PDF]
- Financial globalization: the need for a single currency and a global central bank – www.tandfonline.com [PDF]
