In economics, a local currency is a currency not backed by a national government and intended to trade only in a small area.

Advocates such as Jane Jacobs argue that this enables an economically depressed region to pull itself up, by giving the people living there a medium of exchange that they can use to exchange services and locally produced goods in a broader sense, this is the original purpose of all money. Opponents of this concept argue that local currency creates a barrier that can interfere with economies of scale and comparative advantage and that in some cases they can serve as a means of tax evasion.

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Local currencies can also come into being when there is economic turmoil involving the national currency. An example of this is the Argentinian economic crisis of in which IOUs issued by local governments quickly took on some of the characteristics of local currencies.

One of the best examples of a local currency is the original LETS currency, founded on Vancouver Island in the early s. The resulting currency and credit scarcity left island residents with few options other than to create a local currency. The following table are estimates of the 15 most frequently used currencies in world payments from January and August by SWIFT. From Wikipedia, the free encyclopedia.

Generally accepted medium of exchange for goods or services. For other uses, see Currency disambiguation. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Main article: Coin. Main article: Banknote. Main articles: Banknote and Fiat currency. Further information: Tables of historical exchange rates to the United States dollar. For a list of which currency or currencies are used by present-day countries or regions, see List of circulating currencies.

Main article: Alternative currency. Main article: Local currency.

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Numismatics portal Business and economics portal History portal Society portal Money portal. The percentages above are the percent of trades involving that currency regardless of whether it is bought or sold, e. The Free Dictionary. Money in any form when in actual use as a medium of exchange, especially circulating paper money. A Primer on Money, Banking and Gold 3rd ed. Hoboken, NJ: Wiley. ISBN OCLC The Economist. Determining the relative values of different currencies is the role of the foreign-exchange markets.

Bank for International Settlements. November Retrieved May 11, August 16, One of the most common actions identified across the surveyed jurisdictions is government-issued notices about the pitfalls of investing in the cryptocurrency markets. December 31, Historical Materialism. ISSN Archived from the original on May 23, Retrieved August 28, Medieval trade in the Mediterranean world: Illustrative documents. Records of Western civilization.

New York: Columbia University Press. Archived from the original on March 9, March The Journal of Economic History. JSTOR Reserve Bank of Australia. Retrieved December 9, Retrieved December 8, Cambridge University Press. Meet the future of branded currency". TED conference. July 25, Archived from the original on July 25, Archived from the original on October 24, Retrieved December 14, March 18, September 16, Retrieved September 16, The collapse of the dollar and how to profit from it: Make a fortune by investing in gold and other hard assets Paperback ed.

New York: Doubleday. The Extraenvironmentalist Interview. Retrieved December 29, The Extraenvironmentalist Podcast. Medium of exchange. Money portal. List of historical currencies Barter. Economic theory Political economy Applied economics. Economic model Economic systems Microfoundations Mathematical economics Econometrics Computational economics Experimental economics Publications. Schools history of economic thought. Notable economists and thinkers within economics. Currencies of Europe. Armenian dram Artsakh dram unrecognised Azerbaijani manat Belarusian ruble Georgian lari Kazakhstani tenge Moldovan leu Russian ruble Transnistrian ruble unrecognised Ukrainian hryvnia.

Albanian lek Bosnia and Herzegovina convertible mark Macedonian denar Maltese scudo unrecognised Serbian dinar Turkish lira. Namespaces Article Talk. Views Read Edit View history. Help Learn to edit Community portal Recent changes Upload file. Download as PDF Printable version. Wikimedia Commons Wikinews Wikiquote.

Look up currency in Wiktionary, the free dictionary. Credit cards Medals Tokens Cheques. Stocks Bonds. Glossary of numismatics Numismatics portal Money portal. United States dollar. Japanese yen. Pound sterling.

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Australian dollar. Canadian dollar. Swiss franc. Hong Kong dollar. New Zealand dollar.

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Swedish krona. South Korean won. Singapore dollar.

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Norwegian krone. Mexican peso. Indian rupee. Russian ruble.

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South African rand. Turkish lira. Brazilian real. New Taiwan dollar. Danish krone. Thai baht. Indonesian rupiah. Hungarian forint. Czech koruna. Israeli new shekel. Chilean peso. Philippine peso. UAE dirham. This is how the. In forex trading, the spread is the difference between the bid sell price and the ask buy price of a currency pair. There are always two prices given in a.