Definition of currency
- a story gaining currency
- Furs were once used as currency.
- … neither side possessed any currency but clichés …
- —Jan Struther
A new currency has been introduced in the foreign exchange market.
They were paid in U.S. currency.
Furs were once traded as currency.
The word has not yet won widespread currency.
I'm not sure about the accuracy and currency of their information.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'currency.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Currency is a medium of exchange for goods or services within an economy.
Currency can be either fiat or tied to an underlying asset. Fiat money has no intrinsic value and is backed by the full faith and credit of the issuing government. That is, this type of currency is not worth very much in terms of its value as a raw material. Most paper money is fiat money, and its value comes from what it represents rather than what it is. Asset-backed currencies tied to gold, silver or other valuable commodities are rare in present day markets.
Currency serves an important role in an economy, and has three universally accepted economic advantages: it acts as a medium of exchange, a store of value, and a standard of value. Meaning it allows buyers and sellers to quickly arrive at comparative prices instead of haggling over how many of one good is worth compared to an unlimited number of others.
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