Fiat Currency

Government-issued currency not backed by a physical commodity.

Detailed Definition

Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. It is not backed by a physical commodity like gold or silver, but by the government that issued it.

Related in Forex

Central Bank

An institution managing a state's currency and monetary policy.

Hawkish

An economic outlook favoring higher interest rates.

Pip

The smallest price change a given exchange rate can make.