Currency designation. Forex and world standards

Currency encoding is necessary for brevity. It can be seen in various bank documents and specialized resources (internet, periodicals, information on television and the like). There is a standard that is used throughout the world and is generally accepted. Typically, the currency designation is classified as a table divided into four major points:

• Monetary unit in the national language of the state where direct banking transaction or exchange trading is conducted.
• The name of the same equivalent is in English.
• The letter code, consisting of three elements. In it the abbreviated designation of currency is enciphered.
• A numeric code that includes three or two characters. It is used to simplify mainly in the banking documentation.

In addition, when characterizing a monetary unit, additional parameters are sometimes indicated: a list of countries where it is recognized as a legal means of payment (convertibility), component (digit), and other indicators. The most obvious example, in which the designation of currencies appears, is a quotation or a money rate. It usually indicates the currency pair and its value at the moment.

It is worth noting that the designation of currencies greatly simplifies the work of banks and other financial institutions. In addition, we must not forget about the speed of decision making during active trading. Gradually, this encoding is perceived at a subconscious level, which leads to the elimination of time-consuming memorization of necessary data.

Very indicative in this sense is the Forex trading market, the exchange rate on which is denoted only in this way. Below are the most common examples of currency symbols used in trading:

• US dollar - USD, stands for United States Dollar;
• Swiss Franc - CHF - Confederation Helvetica Franc;
• British Pound - GBR - Great British Pound;
• Japanese Yen - JPY - Japanese Yen.

The designation of currencies has its own exceptions to the generally accepted norms. For example, the Russian currency is not designated as expected RUB, but as RUR, and the euro, which is a universal payment tool for several countries at once, has the abbreviation EUR.

If we talk about exchange rates, they show the ratio of money resources of different states in relation to each other. Their codes are represented as six-letter words, consisting of the designations of two currencies, usually separated by a sign or a "-" symbol. In this case, the first place is always put more weighty billing unit.

In conclusion, I would like to note that any financial abbreviation that denotes this or that currency is very important. Especially in our time, when the development of Internet technologies is gradually coming to a new level. After all, a person is not always able to catch up with various changes in the trends of any region, but he is able to adapt and improve himself in an already existing environment, and the brevity of currency symbols simplifies this task. In addition, if you believe the classics, this encoding is a talented invention, and not just a drive of laziness.