Sectoral Currency

AAA

DEFINITION of 'Sectoral Currency'

A medium of exchange that only has value in a limited marketplace. Sectoral currencies are a type of complementary currency. The other major type of complementary currency is a regional or local currency, which only has value in specified locations within a limited geographic region.

INVESTOPEDIA EXPLAINS 'Sectoral Currency'

The Fureai Kippu is a well-known type of sectoral currency. These "caring relationship tickets" support a time-dollar system used in Japan to provide health care to the elderly and the disabled. Individuals earn the currency by spending their time providing care to someone in need. The hours of service they accumulate can be used to pay for their own care in the future or for the care of a family member with a present need.


Other examples of sectoral currencies include loyalty program rewards and gift cards. Regional currency examples include BerkShares, Toronto dollars and Lewes pounds.

RELATED TERMS
  1. Calgary Dollar

    A local currency used in Calgary, Canada. Calgary dollars are ...
  2. Lewes Pound

    A local currency used in Lewes, East Sussex, United Kingdom. ...
  3. Flex Dollars

    1. A local electronic currency used by some universities to facilitate ...
  4. Toronto Dollar

    A local currency used in Toronto, Canada, primarily in the St. ...
  5. Fureai Kippu

    A complementary currency system for providing elder care in Japan. ...
  6. BerkShares

    A local currency used in the Berkshires, a region in western ...
Related Articles
  1. Forex Education

    Top 8 Most Tradable Currencies

    Currencies can provide diversification for a portfolio that's in a rut. Find out which ones you need to know.
  2. Forex Strategies

    Canada's Commodity Currency: Oil And The Loonie

    When the price of oil goes up, don't worry about how much gas is going to cost - get even by making a play on the Canadian dollar.
  3. Forex Education

    4 Ways To Forecast Currency Changes

    Whether you are a business or a trader, having an exchange rate forecast to guide your decisions helps to minimize risks and maximize returns.
  4. Forex Education

    Gold: The Other Currency

    Throughout history, gold has held its value against paper currencies. Learn how it can help offset market risks.
  5. Forex Education

    Drastic Currency Changes: What's The Cause?

    Currency fluctuations often defy logic. Learn the trends and factors that result in these movements.
  6. Forex Education

    3 Factors That Drive The U.S. Dollar

    We look at three important factors that affect U.S. dollar value, and how to determine when it's the right time to buy currency.
  7. Chart Advisor

    Use This ETF To Trade The Swiss Franc

    Traders were stunned last week when the Swiss National Bank removed the currency peg that tied the value of the Swiss franc to the euro.
  8. Economics

    Sanctions & Falling Oil Prices Hit Ruble Hard

    Russia, through its aggressive actions, has brought upon itself sanctions which, coupled with falling oil prices, have adversely impacted its economy.
  9. Economics

    What is the difference between a nation's current account deficit and its currency valuation?

    Learn the respective meanings of the two terms, current account deficit and currency valuation, and understand the relationship between them.
  10. Forex Strategies

    How do I use the Haurlan Index to create a forex trading strategy?

    See how the three components of the Haurlan index can be used by forex traders to assess the strength of buyers and sellers for a currency pair.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center