Legal Definitions - national currency

Definition: National currency is a type of currency that is approved by a national government and used as a medium of exchange within that country. It can be in the form of coins, government notes, or banknotes.

• United States currency
• British pound sterling
• Japanese yen

These examples illustrate national currencies because they are all approved by their respective national governments and are used as a medium of exchange within their countries. For example, the United States currency is approved by the federal government and is used to buy goods and services within the United States.

National currencies are also considered legal tender, which means they are recognized by law as a valid form of payment for debts and taxes. This makes them an important part of a country's economy and financial system.