valute

Valute is the plural form of valuta in Italian and refers to currencies or monetary units used by countries or regions. In English and many other languages, the term valute is not commonly used; the standard terms are currency or monetary unit. The concept encompasses both physical money, such as coins and banknotes, and non-physical representations, such as bank deposits and electronic funds denominated in a given currency.

Etymology and usage notes: Valuta comes from Italian, with roots in Latin valūtus meaning worth or value. In banking contexts, valuta also appears as valuta date or value date, the date on which funds are credited or debited, a separate idea from the currency itself.

Scope and function: Currencies are issued by sovereign states or monetary unions and are administered by central banks or monetary authorities. Their value is influenced by factors including supply and demand, inflation, interest rates, and exchange rate regimes. Some currencies float freely, others are fixed or managed within a currency union, such as the euro for participating European countries.

Examples and roles: Major valute include the euro (EUR), the United States dollar (USD), the Japanese yen (JPY), and the British pound (GBP). In economic analysis, currencies serve as units of account, means of payment, and stores of value, and they are commonly compared through exchange rates.

Terminology note: While valute as a plural is common in Italian-language sources, English-language finance texts typically use “currencies” to cover the same concept.