Your chances of encountering foreign currencies are growing with increasingly connected world commerce. At times, you may have to record business transactions in currencies of other nations when payment terms involve agreements with parties outside of Canada. Thus, it is necessary to know about some commonly used currency names, codes, and symbols. All nations have their own currencies. Some common currencies include the dollar (which uses the $ symbol in Canada, the United States, and about 20 other countries), the European Union’s euro (which uses the symbol), the Japanese yen (which uses the ¥ symbol), and the United Kingdom’s pound sterling (which uses the £ symbol).Countries also have their own three-letter currency codes, often used in forex trading, such as EUR for the euro or CHF for the Swiss franc. These codes can be used to discern between currencies with similar names or symbols; while Canada, the United States, and Australia all use dollars (and the $ symbol), the currency codes are CAD for the Canadian dollar, USD for the U.S. dollar, and AUD for the Australian dollar.The dollars used by different countries are not all valued the same. A country’s currency is valued based on the amounts of its currency in circulation and the output of its domestic economy. If a country has a tighter monetary policy and a larger economy, its currency value is higher. When you know about the basics of foreign currencies, you’re better prepared in the era of global commerce.