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Wednesday, April 22, 2009

Foreign Currency Symbols

Currencies, like equities, have their own symbols that distinguish one from another. Since currencies are quoted in terms of the value of one against the value of another, a currency pair includes the "name" for both currencies, separated by a "/". The "name" is a three letter acronym. The first two letters are in most cases reserved for identification of the country. The last letter is the first letter of the unit of currency for that country. For example,
USD = United States DollarGBP = Great Britain PoundJPY = Japanese YenCAD = Canadian DollarCHF = Confederatio Helvetica (Latin for Swiss Confederation) FrancNZD = New Zealand DollarAUD = Australian DollarNOK = Norwegian KronaSEK = Swedish Krona
Since the European Euro has no specific country attached to it, it goes simply by the acronym EUR.
By combining one currency, EUR, with another USD, you create a currency pair EUR/USD.

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