1. What factors influence the names of the currency used in different countries?

You have probably heard of the dollar, the peso, and the euro. But how about the baht, the kwacha, and the rand? With over 200 countries in the world, many currency names exist.

Some monetary units, like the peso, are used in more than one country.

The word franc is used as the currency name by over 25 countries in Africa and other places. These nations were influenced by France through colonization and other global activities. Similarly, the shilling is used in Kenya, Somalia, Tanzania, and Uganda, which were previously British colonies.

Some monetary unit names have unusual origins. The quetzal in Guatemala is the name for a bird with a long tail. In Malawi and Zambia, the kwacha is based on the slogan “New dawn of freedom.”

The word peso means “weight.” The first pesos, coined in Spain in 1497, were also known as pieces of eight. The pieces were made of eight reals, a Spanish word for royal, which was also a common coin at the time. Each real weighed slightly less than 424 troy grains and consisted of silver 0.93 fine. Today, the peso is the monetary unit of Mexico, the Philippines, and several Latin American countries.