ISO 4217
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ISO 4217 is an international standard that defines codes for the currencies of the world. It is maintained by the International Organization for Standardization (ISO). The purpose is to assign a unique code to each currency so that banks, international commerce, and computer systems can exchange financial information without confusion arising from different currency names. For example, the name "dollar" is used by many countries, but each has its own distinct code.
The most commonly used codes are three-letter Latin characters, such as USD (United States dollar), EUR (euro), GBP (pound sterling of the United Kingdom), and JPY (Japanese yen). The standard also provides a three-digit numeric code corresponding to the country code system in ISO 3166, and information about the decimal places that each currency conventionally uses.
Structure of currency codes
The general format of three-letter codes is that the first two letters come from the country code in ISO 3166 alpha-2, while the third letter comes from the name of the currency. Thus CHF represents Switzerland (CH) and franc (F). Some currencies not linked to a single country have codes beginning with the letter X, for example codes for precious metals and special drawing rights.
Decimal places
The standard specifies the number of decimal places for each currency. Most currencies have two decimal places (such as cents). Others, like the Japanese yen, are not normally subdivided and therefore have zero decimal places. There are also currencies with three decimal places. This information is important for financial software, to avoid losing value when converting currencies.
Uses
ISO 4217 codes are used in foreign exchange markets, bank documents, international payment systems, company accounts, and electronic commerce websites. Use of the codes prevents translation errors and confusion with currency symbols such as $ or £, which do not specifically identify a country.
Updating the list
The list of codes changes when new countries are created, currencies are replaced, or previous currencies are withdrawn. The ISO body responsible for maintaining the standard manages updates and publishes the most recent lists. Codes for withdrawn currencies are retained for historical purposes so that financial records remain accurate.