ISO Currency Codes and Symbols in Global Exchange Rates and Foreign Payments: Format and Meaning

Last update: 15 June 2024

360pay provides a list of ISO 4217 currency codes, in addition to the ISO 3166 country codes (here) used in global exchange rates and payment operations by banks, PSPs, and fintechs.

Principle of standardisation

Standardised financial data helps the global payment industry set up efficient processes, interoperate, and comply with regulatory requirements. The 3-digit ISO currency codes provide a memorable format for the over 270 recognized currencies individuals and companies rely on to reduce errors when doing business across borders. The currency symbols appear prominently in exchange rates published by global newspapers and banks and feature on airline and international train tickets.

What is ISO?

ISO stands for "International Organization for Standardization", an independent, non-governmental international organization based in Geneva with a membership of 168 national standards bodies (here). ISO is derived from the Greek "isos", meaning equal. It develops and publishes standards.

Who keeps the official list of ISO currency codes and symbols?

The ISO 4217 list of currency codes is officially maintained by SIX Financial Information AG (here), a subsidiary of the Swiss financial market infrastructure operator SIX on behalf of the International Organization for Standardization - ISO (here).

What is the format of the ISO currency codes?

ALPHABETIC CODES

The first two letters of the alphabetic ISO currency codes are based on the official ISO country codes (here). The third character essentially corresponds to the first letter of the currency name. Thus, the US dollar is represented by USD (United States + Dollar) - the Japanese yen by JPY (Japan + Yen).

However, there are exceptions: for reasons of currency memorability, the official currency code for the euro (EUR) uses the third letter in the word "euro".

In addition, currency devaluation sometimes leads to the replacement of one national currency by another. Thus, the symbol for the most traded currency in Latin America, the Mexican peso (MXP until 1993), became MXN after its revaluation (interestingly, the letter "n" stands for "new").

The same fate befell the currency code of the Russian rouble which was redenominated from RUR into RUB in the aftermath of the 1998 Asian currency crisis (the letter "b" was derived from third character in the word "rouble").

It is significant that the Bitcoin or any other cryptocurrency does not have an official ISO currency code.

NUMERIC CODES

The three-digit numeric code is useful (i) for representing currencies in countries that do not use Latin scripts and (ii) for computerized systems. Where possible, the three-digit numeric code is the same as the numeric country code (here).

Precious metals codes - what is the meaning of XAU and XAG?

XAU/USD is the symbol for spot gold traded on the foreign exchange market. Gold (XAU) is traded against the US dollar (USD), and its price represents the cost of 1 ounce of gold in USD.

Similarly, XAG is the official standard code for 1 troy ounce of silver (considered as a currency).

What are currency areas, currency regions, and currency unions?

A currency union is an agreement among its members to share a common currency.

List of countries using the US dollar (USD):

• American Samoa
• Bonaire, Sint Eustatius and Saba
• British Indian Ocean
• Ecuador
• El Salvador
• Guam
• Haiti
• the Marshall Islands
• Micronesia
• Northern Mariana
• Palau
• Panama
• Puerto Rico
• Timor Leste
• Turks and Caicos Islands
• United States Minor
• the United States of America
• British Virgin Islands
• U.S. Virgin Islands

List of countries using the Euro (EUR):

• Åland Islands
• Andorra
• Austria
• Belgium
• Croatia
• Cyprus
• Estonia
• Finland
• France
• French Guiana
• the French Southern Territories
• Germany
• Greece
• Guadeloupe
• the Holy See
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg
• Malta
• Martinique
• Mayotte
• Monaco
• Montenegro
• the Netherlands
• Portugal
• Réunion
• Saint Barthélemy
• Saint Martin (French Part)
• Saint Pierre and Miquelon
• San Marino
• Slovakia
• Slovenia
• Spain
• Switzerland (WIR Euro)

List of countries using the franc of the "Communauté financière africaine" - CFA franc (XAF and XOF):

• Benin
• Burkina Faso
• Cameroon
• Central African Republic
• Chad
• Congo
• Côte d'Ivoire
• Equatorial Guinea
• Gabon
• Guinea-Bissau
• Mali
• Niger
• Senegal
• Togo

List of countries using the Australian dollar (AUD):

• Australia
• Christmas Islands
• Cocos (Keeling) Islands
• Heard Island and McDonald Islands
• Kiribati
• Nauru
• Norfolk Islands
• Tuvalu

List of countries using the Pound Sterling (GBP):

• Guernsey
• Isle of Man
• Jersey
• UK

List of countries using the Danish Krone (DKK):

• Denmark
• the Faroe Islands
• Greenland

List of countries using the Norwegian Krone (NOK):

• Norway
• Svalbard and Jan Mayen
• Bouvet Island

List of countries using the East Caribbean Dollar (XCD):

• Anguilla
• Antigua and Barbuda
• Dominica
• Grenada
• Montserrat
• Saint Kitts and Nevis
• Saint Lucia
• Saint Vincent and the Grenadines

List of countries using the Swiss Franc (CHF):

• Switzerland
• Liechtenstein

Fixed exchange rate systems: what is a currency peg?

A currency peg is a fixed exchange rate.

• Lesotho: the domestic Loti is pegged to the South African Rand
• Namibia: the domestic Namibian dollar is pegged to the South African Rand
• Panama: the domestic Panamanian balboa is pegged to the US Dollar

What is a non-circulating currency or accounting unit?

A non-circulating currency is a recognized unit of measurement serving a practical purpose (e.g., measurement of inflation, indexation, denomination of treasury bills, accounting between state members):

• African Development Bank (ADB): ADB Unit of Account (XUA) - used for settlements between member states (here)
• Bolivia: Mvdol (BOV) - a unit of account that is inflation-adjusted between the Bolivian boliviano and the US dollar, frequently used in financial instruments due to its stable value
• Chile: Unidad de Fomento (CLF) - created in 1967 for the use in determining the principal and interest in international secured development loans; later it was extended to all types of bank loan.
• Colombia: Unidad de Valor Real (COU)
• Cuba: the Cuban convertible peso (CUC or chavito) was one of two official currencies in Cuba; since 2021, the CUC is no longer accepted in many Cuban businesses (here)
• International Monetary Fund (IMF): Special Drawing Right - SDRs (XDR)
• Mexico: Mexican Unidad de Inversion - UDI (MXV) used in the Mexican credit system (especially mortgages) due to its stability
• Uruguay: Uruguay Peso en Unidades (UYI), a consumer price indicator for Uruguay, in addition to the Unidad Previsional, a daily accounting unit that tracks changes to the nominal wage index

What is an alternative or complementary currency?

1. Sistema Unitario de Compensación Regional de Pagos - SUCRE (XSU)

SUCRE was/is a regional virtual currency intended for commercial exchanges among members of the ALBA bloc - "Alianza Bolivariana para los Pueblos de Nuestra América" (here).

2. WIR-Wirtschaftsring-Genossenschaft - WIR franc (CHW)

The Swiss WIR franc was created in the wake of the Great Depression in the 1930s. Initially, WIR deposits did not earn interest and were subject to a so-called holding fee (negative interest); in return, WIR loans were granted at favourable conditions.

Today, the Swiss WIR franc (or WIR euro - CHE, 947) is still used by around 28,000 Swiss SMEs and 7,500 private individuals (here), but with a declining trend. A list of all participants of the WIR system can be found at this link (here).

The WIR franc is essentially a non-interest-bearing complementary currency pegged to the Swiss franc for domestic use by Swiss SMEs. In particular, WIR customers receive an interest-free instant loan of 10,000 WIR. On the other hand, WIR prices for retail products are often much higher than prices in Swiss francs. Furthermore, a network fee of 2% in Swiss francs is charged every time a payment is made in WIR (similar to PayPal). And finally, WIR Bank prohibits the exchange of WIR into Swiss francs. Considerable discounts have to be accepted for exchange activities on the grey market.