Currency

Currency is the legal tender of another country in its physical appearance, as paper money or coins.

Currency is tangible foreign legal tender. If we take our country's local banknotes abroad in our wallet, they are not currency before crossing the border, but they are already on the other side of the border. Two forms of appearance of the currency the banknote or the coin. These may be treated differently, for example coins are not exchanged everywhere or an extra fee is charged after they are exchanged.

The currency is not to be confused with the with foreign currency, which is not cash, but a money substitute. (Precisely stated, a receivable in a foreign currency on the currency of a foreign country, i.e. say, for example, a euro account in the United States.) 

The currency exchange rate it has three forms of appearance. At the selling currency rate, we receive the local currency equivalent in cash of the currency we sell. We are talking about a buying currency rate when we want to get cash in another currency for cash in the local currency. The middle rate lies between these two. This central bank notes, and we have little to do with it in everyday life, it is used more for settlements during cross-border transactions, although they are typically done in foreign currency. 

An important difference between currency and foreign exchange is that the difference between the buying and selling rates (a margin) for currency is usually larger than for foreign exchange. As a result, the exchange cost in foreign currency is typically lower than in foreign currency. 

An important condition in the definition of currency is that it is legal tender. Thus, for example, a banknote withdrawn from circulation is no longer currency, although the national bank of the issuer country will redeem it for an unlimited period of time. Local money issued by a specific city or region cannot be considered a currency either.