Commodity currency

A commodity currency is a name given to some currencies that co-move with the world prices of primary commodity products, due to these countries' heavy dependency on the export of certain raw materials for income. These countries are typically developing countries, e.g. countries like Burundi, Tanzania, Papua New Guinea; but also include developed countries like Canada and Australia.

In the foreign exchange market, commodity currencies generally refer to the Australian dollar, Canadian dollar, New Zealand dollar, Norwegian krone, South African rand, Brazilian real, Russian ruble and the Chilean peso.

See also

• Gold standard
• Silver standard
• Hard currency
• Private currency
• Representative money
• Reserve currency
• Commodity money

External links

• IMF's study on commodity currencies
• Do Terms of Trade Drive Real Exchange Rates? Comparing Oil and Commodity currencies