Forex is a market that does not involve the physical delivery of the currencies bought or sold, but simply an exchange of contracts for each Currency Pair.
Currency is a unit of exchange that has the purpose of facilitating the transfer of goods and services. It mostly takes the form of money.
Currency pairs are always expressed through specific symbols, as required by international conventions. Therefore, each currency has a specific symbol.
The following are the main currencies (majors):
- Euro = EUR
- US Dollar = USD
- British Pound = GBP
- Japanese Yen = JPY
- Swiss Franc = CHF
- Canadian Dollar = CAD
- Australian Dollar = AUD
- New Zealand Dollar = NZD
Then there are minor currencies (minors), which are currencies that have a lower daily turnover and usually belong to second-tier economies. Among the most important minor currencies are:
- Swedish Krona = SEK
- Norwegian Krone = NOK
- Danish Krone = DKK
- Russian Ruble = RUB
- Polish Zloty = PLN
- Hungarian Forint = HUF
- Turkish Lira = TRY
Finally, we find exotic currencies that belong to emerging economies, usually South America, the Far East, and Africa:
- Chinese Renminbi (Yuan) = CNY
- Indian Rupee = INR
- Hong Kong Dollar = HKG
- Singapore Dollar = SGD
- Thai Baht = BHT
- South Korean Won = KRW
- Indonesian Rupiah = IDR
- Brazilian Real = BRL
- Mexican Peso = MXN
- South African Rand = ZAR
The Chinese currency is placed among the exotic ones, despite China now being the second-largest economic power in the world behind the USA, as the USD/CNY exchange rate is still subject to a fixed exchange rate regime with a very narrow fluctuation band.
The low level of the exchange rate is a reason for continuous dispute between the two superpowers, with the United States having long called for a greater appreciation of the Chinese yuan, allowing it to float more freely in the markets to avoid imbalances in international trade.
