Valutor

Valutor are the forms of money used as a medium of exchange, unit of account, and store of value within an economy. They are typically issued or guaranteed by a monetary authority such as a central bank or government and exist as physical money (coins and banknotes) and increasingly as digital representations.

Functions of valutor include serving as a generally accepted means of payment, a unit of account for pricing and accounting, and a store of value for savings. Their value is influenced by monetary policy, inflation, and exchange rates. Most countries use fiat currencies, which are not backed by a physical commodity. The value of a currency is determined by supply and demand in financial markets, expectations, and macroeconomic fundamentals.

Types of valutor include national currencies like the Swedish krona, the euro, and the US dollar; foreign currencies used within a country for trade or travel; and regional currencies or currency unions such as the euro area. Digital forms include central bank digital currencies (CBDCs) and cryptocurrencies; however, cryptocurrencies are not universally accepted as legal tender in most jurisdictions.

History and regulation encompass the transition from commodity and representative money to fiat systems managed by central banks. Legal tender laws require acceptance for debts in most contexts; security features combat counterfeiting; and exchange-rate regimes range from fixed to floating. Regulation addresses financial stability, consumer protection, and anti-money-laundering measures.

Global use of valutor enables international trade and investment. Exchange rates fluctuate, and currency reserves held by central banks influence monetary policy. Traders, businesses, and travelers interact with multiple currencies through banks, exchange desks, and payment networks.