In the past it was difficult for companies to send and receive payments internationally, especially using different currencies, as there were certain systems that were not compatible with certain currencies, there were problems with currency conversion or simply had to rely on third parties to make such transactions, which increased commissions and transaction times.
Thanks to the advance of technology, nowadays there are different financial solutions that allow make this type of transaction easier and faster way, being one of these solutions the multi-currency IBAN accounts, which allow making international transactions with different currencies. Next, we will learn more about this type of account and how many currencies they admit.
Multi-currency IBAN account
While an IBAN account allows transactions to be made using the IBAN code that identifies bank accounts internationally, multi-currency IBAN accounts are a financial product that allows sending and receiving payments in more than 30 currencies, and more than 150 countries have adopted this innovative financial system.
Main currencies supported by multi-currency IBAN accounts
Multi-currency IBAN accounts allow for multi-currency transactions and the management of different currencies within the same account. The currencies or currencies accepted may vary depending on the bank or financial institution offering the account (in the case of Pilsenga, there are more than 30 currencies). However, the most accepted or used currencies are the following:
U.S. dollar (USD)
The U.S. dollar (USD) is the official currency of the United States of America and other countries around the world. Its symbol is “$,” and it is the most traded fiat currency in the world, followed by the euro and the Japanese yen. It is important to note that the U.S. dollar was pegged to gold until 1971; since then, it has been a currency whose value is determined by the exchange rate through the free market, in addition to being used as an international reserve by many countries.
Euro (EUR)
The Euro (EUR) is the official currency of the European Union (EU), and its symbol is the “€”. This currency is used in the Eurozone, which is comprised of 20 of the 27 member states of the European Union. It is the second most traded fiat currency used in international transactions, after the U.S. dollar. Although its name (euro) was officially adopted in 1995, it was only in 2002 that this currency entered into circulation.
British pound sterling (GBP)
The British pound sterling (GBP) is the official currency of the United Kingdom and is used in nine of the territories associated with the British crown. Its symbol is “£ .” It is the oldest currency, which is still used as legal tender, as it is also one of the most widely used currencies for transactions around the world. The pound was originally worth the weight of a sterling silver Tower Pound, which gave rise to its name (pound sterling).
Japanese Yen (JPY)
The Japanese yen (JPY) is the official currency of Japan and is the third most widely used fiat currency in international transactions and in the foreign exchange market (after the U.S. dollar and the euro). It is important to note that along with the latter two fiat currencies, the Japanese yen is also used as a reserve currency. The currency symbol is “¥”. Since 1971, the yen has remained under political intervention within the foreign exchange market with an exchange rate managed by the government of Japan, which has caused it to experience periods of depreciation and appreciation, mainly due to various economic and political circumstances.
Swiss franc
The Swedish Krona (SEK) is Sweden’s official currency. It is known for its stability, reliability, and safety and is often used as a “safe haven” in times of economic uncertainty. The Swiss National Bank (SNB) is responsible for monetary policy and the issuance of the currency. The SNB aims to maintain price stability and create a favorable economic environment.
Canadian dollar
The Canadian dollar (CAD) has been the official currency of Canada since 1858. It is generally represented by the symbol “C$” to distinguish it from other dollar-denominated currencies. The Canadian dollar is one of the most traded currencies in the foreign exchange market due to Canada’s economic stability and the natural resources it possesses, especially oil and natural gas.
Australian dollar
The Australian dollar (AUD) is the official currency of Australia and its external territories. It is a currency known for its stability and importance in international trade, especially in the Asia-Pacific region. Importantly, Australia’s economy is heavily influenced by its abundant natural resources, including minerals, natural gas, metals and coal. Trade in these resources with countries such as China, Japan, and other Asian regions has a significant impact on the value of the Australian dollar.
Swedish krona
The Swedish Krona (SEK) is the official currency of Sweden. It is known for its stability and for being one of the most widely used currencies in the Nordic region. It is important to note that although Sweden is a member of the European Union, it is not part of the euro zone and therefore does not use the euro as its official currency. However, fluctuations in the euro can influence the Swedish krona, especially due to the close trading relationship between Sweden and the euro zone countries.
New Zealand dollar
The New Zealand dollar (NZD) is the official currency of New Zealand and its dependent territories. Its symbol is “NZ$” to differentiate it from other dollar-denominated currencies. It is important to note that New Zealand has strong trade relations with countries in the Asia-Pacific region, especially Australia and China, so trade with these countries can affect the value of the New Zealand dollar.
Singapore dollar
The Singapore dollar (SGD) is Singapore’s official currency. It is one of the strongest and most stable currencies in Asia, backed by Singapore’s economy and financial system. Importantly, unlike other countries that use interest rates to control their currency, Singapore manages its currency through its exchange rate policy, which is run by the Monetary Authority of Singapore (MAS), which intervenes in the foreign exchange market to keep the Singapore dollar within a “target range” against other currencies of its major trading partners.
Are cryptocurrencies supported in multi-currency IBAN accounts?
Multi-currency IBAN accounts generally do not support cryptocurrencies, as these types of accounts are designed for fiat currencies (FIAT) only. Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) that operate in the blockchain ecosystem are not part of this system. However, there are alternatives in the market that offer complementary services that include cryptocurrencies, an example of this is Pilsenga, which in addition to multi-currency IBAN accounts, also offers other complementary services such as wallet, exchange, and payment processors, which allow managing cryptocurrencies.
Do you want to know more about Pilsenga’s multi-currency IBAN account service?
If you are interested in Pilsenga’s products or services (including multi-currency IBAN accounts), you can visit our website and register on our platform by visiting the following link.
