Key Currency Law and Legal Definition

Key currency refers to the currency used as a reference in an international transaction or when setting an exchange rate. It is the major currency in the global economy. The key currency used is usually issued by a stable, developed country such as the U.S. Central banks also hold key currencies in reserve. Key currencies include the U.S. dollar, the British pound sterling, the German mark, the Swiss franc, the French franc, the Dutch guilder, the Japanese yen and the Canadian dollar.