1.First Two Letters: Country Identifier
1.The first two letters in a currency symbol are known as the "country identifier." These letters represent the official ISO 3166-1 alpha-2 country code of the respective country. Each country is assigned a unique two-letter code. For example:
1.US: United States
2.JP: Japan
3.EU: Eurozone (representing multiple European countries using the Euro)
2.Third Letter: Currency Identifier
1.The third letter in the currency symbol is used to identify the specific currency associated with that country. This letter is often derived from the currency's name in the country's official language or another relevant identifier. For instance:
1.D: Dollar (e.g., USD for United States Dollar)
2.Y: Yen (e.g., JPY for Japanese Yen)
3.E: Euro (e.g., EUR for Euro)
By using this standardized three-letter format for currency symbols, the Forex market ensures clarity and consistency in identifying currencies from different countries. This convention makes it easy for traders and financial institutions to recognize and trade various currency pairs with precision and accuracy.
Symbol | Country | Currency | Nickname |
|---|---|---|---|
USD | United States | Dollar | Buck |
EUR | Euro zone | Euro | Fiber |
JPY | Japan | Yen | Yen |
GBP | Great Britain | Pound | Cable |
CHF | Switzerland | Franc | Swissy |
CAD | Canada | Dollar | Loonie |
AUD | Australia | Dollar | Aussie |
NZD | New Zealand | Dollar | Kiwi |
