Valutaer

Valutaer are currencies used in foreign exchange and international trade. In Danish and Norwegian, valuta (plural valutaer) denotes money issued by other countries or used for international transactions, as opposed to a country’s own domestic currency.

A currency serves as a medium of exchange, a unit of account, and a store of value. Today most valutaer are fiat money, issued by sovereign states or monetary unions. Their value relies on legal tender status, public confidence, and monetary policy rather than physical commodity backing. Valutaer vary in how they are issued, regulated, and accepted in global markets, but all function within a broader monetary system.

Valutaer are traded on the foreign exchange market, where their values relative to other currencies are determined by supply and demand, interest rates, inflation expectations, economic data, and geopolitical developments. Central banks can influence exchange rates through policy actions, market operations, and alterations in interest rates. Many countries also maintain foreign exchange reserves to stabilize markets and support international obligations.

Commonly traded valutaer include the euro, United States dollar, British pound, Japanese yen, and Chinese yuan, among others. The set of currencies that dominate global trade and finance is often described in terms of reserve currencies and major funding currencies.

In recent years, digital payments, fintech innovations, and the emergence of digital and cryptocurrencies have affected cross-border transfers and currency markets, though traditional fiat valutaer remain the standard for most everyday transactions and official accounting.