Commodity currency

A commodity currency is a name given to currencies of countries which depend heavily on the export of certain raw materials for income. These countries are typically developing countries, eg. countries like Burundi, Tanzania, Papua New Guinea; but also include developed countries like Australia and Iceland. In the foreign exchange market, commodity currencies generally refer to the Australian Dollar, Canadian Dollar, New Zealand Dollar, and the South African Rand.

External links

• IMF's study on commodity currencies

commodity currency is money that has intrinsic value and used as currency based on that fact, not by government decree, as with fiat currency.

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