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Currency

KUR-uhn-see /ˈkʌrənsi/

nounB1

formalgeneral

A system of money in general use in a particular country.

Refers to the physical money (coins and banknotes) and the monetary system of a nation.

The story behind the word. The word 'currency' comes from the Latin 'currere,' meaning 'to run.' This root gave us 'current,' referring to something flowing or moving. So, 'currency' is literally the money that 'runs' or 'circulates' through an economy, constantly moving from hand to hand.

Word relationships

money: More general term, can refer to wealth or assets beyond just physical notes/coins.
legal tender: Specific legal status of money, denoting its acceptance for debt.

Commonly confused with

Capital: Capital refers to wealth (money or other assets) owned by a person or organization, often used for investment. Currency is the specific form of money.

Word family

current (adjective): belonging to the present time; in general use or circulation.

Collocations

foreign currency
local currency
digital currency
national currency
convertible currency

Example sentences

"The Euro is the official currency of 19 out of the 27 member states of the European Union." Discussing international trade.
"Before the introduction of the dollar, various forms of colonial currency were used in America." Referring to historical money.

Memory hook

Imagine a CURRent of water, always flowing and moving. CURRENCY is money that is always flowing and moving through an economy. Current flow

When not to use

Do not use 'currency' when specifically referring to the value or exchange process; 'exchange rate' or 'foreign exchange' would be more appropriate.

Fun facts

The term 'currency' also refers to the state of being current or in circulation, as in 'the currency of an idea.'

Related words

Exchange Rate, Foreign Exchange

Explore more words

counterfeit, barter, Hyperinflation, Inflation, sector, species