World currency codes are designations in the form of numbers and letters, defined by the ISO 4217 standard, which is recognized internationally. They are used in all countries. Any of the world's currencies has its own designation. For example, 643 is the currency code of the ruble of the Russian Federation. The letter designation also contains three characters.
The need for standardization
It is necessary to standardize any work. As a result, the currency of each state has its own unique features.
The digital currency code is regulated and adopted globally. The list of monetary units is quite large. The digital designation itself consists of several characters - three numbers and three letters written in Latin letters.
A currency code is an alphabetic or numeric abbreviation used to indicate a currency. It is used as an abbreviated designation in the bank documentation and when conducting transactions with money.
The international classifier standardizes the regulations adopted by all states. It is based on the unification of the abbreviated designation of money of existing countries.
Advantages of using abbreviated names
The use of the standard has its advantages:
- when analyzing data in various systems, abbreviated names can increase the speed of information processing and simplify it;
- when exchanging currency in a bank abroad, you can safely carry out the operation: these codes do not require a transfer;
- lack of confusion when designating some currencies with the same name (for example, the US dollar and Canadian).
The current list, consisting of the currencies of all states, totals 280 of their units.
ISO International Standard
Published in the 70s of the twentieth century. Today it is one of the most famous and popular standards. And this is one of three promoted and distributed documents.
The official languages are English and French. Translation into Russian is not provided.
Taking into account this regulation, the rest of the standards used only in our country are formed. For example, the All-Russian Classifier of Currencies (it indicates 643 is the currency code of the Russian Federation). Some states use only ISO. By the way, this document is not binding. He is only a recommendation.
A feature of the standard is a table with currency codes excluded from it after the first publication. In addition, it contains data on derived units.
How currencies are encoded
Currency code - its name in the form of numbers and letters. This was introduced by the international standard ISO 4217. It indicates that each currency should have its own designation, which is used in various reporting forms. These abbreviations are also important to know if you are interested in currency prices.
The coding system used was proposed by the international standardization organization, which developed most of the standards used today.
The entered codes are created in order to automate and unify work with currencies.
The document under consideration is the foundation for the formation of other classifiers. It consists of the following information:
- the name of currencies in languages recognized by the standard as official: English, French;
- letter cipher;
- digital encryption (for example, 643 - the currency code of the Russian Federation);
- bit depth of the exchange currency;
- list of countries in which this money is an official means of payment.
The standard implies a breakdown of monetary units into three groups:
- first group: currently in circulation;
- second group: which are outstanding currency funds;
- third group: who dropped out of circulation on the date the standard was released.
How to read code
If we take the letter designation, then any monetary unit, in accordance with this standard, has three letters in the code:
- the first two letters are the name of the state;
- the third is the name of the national currency.
So, the euro currency code is EUR, dollar is USD.
In this way, digital codes are generated.
By the way, codes are assigned not only to the currencies themselves, but also to operations with them.
A digital encoding is three digits corresponding to the code assigned to the state. For example, the dollar: the currency code is 840.
Euro currency code
This monetary unit is valid in the territory of the countries of the European Union (Eurozone). Recognized official in 16 states.
This currency is the most solvent unit that can be converted into the currency of any country in the world.
The digital code is 978.
Encryption in letters: EUR. The first two letters are abbreviated from European Union. The last letter is the code of the payment unit.
It appeared in the standard since 1999. At first it was listed as the currency for carrying out payments by bank transfer. Since 2002, it has also been used as a means of payment in cash.
The national currency of Russia
The ruble is the payment unit of the Russian Federation. In everyday life also in South Ossetia and Abkhazia.
There is a ruble in Transnistria, Belarus. But there he has his own designations in both alphabetic and digital terms.
The ruble appeared in circulation even in Kievan Rus. Today it has a floating rate, is traded in the foreign exchange market. The currency experienced many shocks, including defaults, crises, etc. But today, the ruble is considered one of the world currencies.
The value of the Russian unit of payment has undergone a change in denomination. If earlier the national currency of the Russian Federation was designated as RUR, now it is RUB. But today, both in programs and in various payment documents, including official ones, the old designation is found, which misleads some.
Thus, they tried to distinguish between the "old" and "new" money of Russia.
To date, the digital currency code is “ruble” - 643. However, this designation has been adjusted: earlier it was different - 810. More than ten years have passed since its cancellation.
All tax declarations and payment documents, including international ones, are designed to ensure that when they are completed, it will be indicated exactly 643 (the currency code of Russia).
Despite this, they still use the old digital designation in the formation of bank accounts. This is explained by the fact that for the transition it would be necessary to change the numbers of all bank accounts of not only individuals but also legal entities, which would be very difficult and expensive to do.