A currency is a generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is written first in the pair is called the base currency, while the second currency is called the quote currency. In the USD/TRY pair, USD is the base currency and TRY is the quote currency. The value of the USD/TRY pair represents the value of the US dollar against the Turkish lira. For example, if USD=2 and TRY=1, the value of the USD/TRY pair would be 2. Simply put, 1 USD is equivalent to 2 Turkish Lira. Central bank monetary policies and economic developments can significantly affect the value of a country's currency, creating substantial investment opportunities in currency pairs.
