Valuuta

Valuuta is the money used as the medium of exchange within an economy. It exists in physical form—banknotes and coins—and in digital form as electronic balances and transfers. A valuuta serves three core functions: it is a means of payment for goods and services, a unit of account for pricing and accounting, and a store of value that preserves purchasing power over time. It can also function as a standard of deferred payment in credit arrangements.

Most modern valuutas are fiat currencies: they are issued by a national or supranational authority and are not backed by a physical commodity. Their value is not intrinsic but derives from trust, legal tender laws, and the ability of the issuing authority to manage supply. Central banks or monetary authorities regulate valuuta supply and stability through monetary policy, including interest rate adjustments, reserve requirements, and open market operations. Exchange rates determine how a valuuta is valued relative to others and can be determined by market forces or fixed or managed regimes.

Historically, valuuta evolved from commodity money such as gold and silver coins to representative money and then to fiat money. In recent years, digital forms such as electronic money and central bank digital currencies have gained prominence, reshaping payments and cross-border settlements while preserving the traditional functions of valuuta.