ISO currency codes are standardized codes used to represent different currencies around the world. These codes are part of the ISO 4217 standard, which defines three-letter alphabetic codes and three-digit numeric codes for the currencies of the world. The primary aim of the standard is to eliminate confusion between currencies, especially in international trade and finance.
Here’s a breakdown of the components of ISO currency codes:
1. Alphabetic Code (3 Letters)
- This is a three-letter code representing a specific currency.
- Example: The code for the US Dollar is USD.
2. Numeric Code (3 Digits)
- This is a three-digit numeric code for the currency, used in contexts where letters might be misinterpreted.
- Example: The numeric code for the US Dollar is 840.
3. Subunit Code (Decimal Places)
- The ISO 4217 standard also defines the number of decimal places a currency can have. This indicates the fractional unit of a currency (for example, cents for the dollar, or pence for the pound).
- Example: The US Dollar has 2 decimal places (e.g., $1.00 = 100 cents).
Examples of ISO Currency Codes:
| Currency Name | Alphabetic Code | Numeric Code | Subunit |
|---|---|---|---|
| United States Dollar | USD | 840 | Cents |
| Euro | EUR | 978 | Cents |
| British Pound Sterling | GBP | 826 | Pence |
| Japanese Yen | JPY | 392 | Sen |
| Swiss Franc | CHF | 756 | Rappen |
| Canadian Dollar | CAD | 124 | Cents |
| Australian Dollar | AUD | 036 | Cents |
Key Points:
- The alphabetic code is the most commonly used (e.g., USD for US Dollar).
- The numeric code is typically used in financial systems or for international transactions.
- The subunit is an important aspect for calculating fractions of the currency (like cents in dollars or pence in pounds).
These codes help standardize currencies across borders and are used by international financial organizations, banks, trading systems, and businesses.
