Title: National Currency
Headings: National Currency
National Currency
What Is a National Currency?
Key Takeaways
How a National Currency Works
Trading National Currencies

Content: Examples of countries that make use of another country's currency are parts of Latin America, regions like Ecuador and El Salvador, which recognize and accept the U.S. dollar for the exchange of goods and services. How a National Currency Works
A national currency, such as the U.S. dollar, the Euro, and the Japanese Yen ( JPY ), is recognized as the world's most widely accepted type of currency. They have a global status as a reliable reserve currency with minimal risk of collapsing. As a result, most foreign transactions are conducted in one of the three currencies. Some countries have also adopted other nation's currency as their own. Examples of countries that make use of another country's currency are parts of Latin America, regions like Ecuador and El Salvador, which recognize and accept the U.S. dollar for the exchange of goods and services. On the other hand, some countries like the United Arab Emirates simply peg or fix their currency rates to the U.S. dollar. That way any geopolitical or economic event won't destabilize the national currency overnight. Trading National Currencies
Currency is not only good for buying groceries or paying a friend back for dinner. It can also be traded and exchanged as a financial instrument similar to stocks, bonds, and any other asset classes.