The Foreign Exchange Market deals primarily in international currencies allowing financial organizations and the banking sector to trade in such currencies. Albeit, the FOREX is maintained via the US dollar, many goods are traded directly in the euro. Monetry authorities and institutions such as central banks which hold bonds and foreign currency deposits, have exclusive rights in lending government's currencies.

The European Union is comprised of 27 member states and 16 of them are collectively making use of the euro. It's interesting to note that over 150 million Africans now trade in the euro. People now using currencies pegged to the euro number over 175 million globally whilst europeans themselves making daily use of the euro are estimated to be around 327 million. That's 650 million people worldwide trading daily with the euro.

Having overtaken the US dollar in terms of cash in circulation, the euro is also the second largest reserve currency with the dollar retaining top spot. According to figures released last year, there was over 751 billion euros in circulation. Countries in europe using the euro now account for the world's second largest economy.

The US dollar has become the de facto currency of many countries due to its popularity in international trading. The word 'dollarization' is the use of foreign currency other than one's own currency and it happens when a nation continues to use said currency. The emergence of one type of monetry usage in preference to another form of currency is when it takes the physical form of the country's supply of money.

'Demand deposits' and the amount of money being circulated is the usual categorization of the word 'money'. From an economic point of view, a country's entire funds are deemed as 'money stock/supply'. The larger part of money stock and thought of in terms of money are those funds being held by commercial banks, in particular, deposit accounts.

Major changes in the stock of money have implications as to the economic stability of the country as a whole and private sector analysts continue to monitor data with regard to the business cycle, that is, the duration of time between differences in economic activity and boomtime or recession; whatever the case may be.

Money which is aligned to the worth of objects is known as commodity money. Commodities are used as a medium of exchange in order not to distinguish trading from bartering. Marx observed, "We have seen that when commodities are in the relation of exchange, their exchange-value manifests itself as something totally independent of their use-value." Meaning that as commodities are exchanged, their value becomes very different to their actual use to human-kind.

The difference between the FOREX and the stock market is that generally speaking, the world's stock markets operate from a particular building in a set location whilst the FOREX on the oher hand is a network of traders, financial institutions and banks all operating electronically in their persuit of currency gains.

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