The currency of account is the currency in which receipts and payments are made.
In settlement with foreign countries, some countries do not use cash remittance payment, but open bank accounts with each other according to the provisions of relevant agreements or contracts.
The income and expenditure of a business transaction between two parties are collected and paid in the form of bookkeeping.
The choice of the functional currency shall be mutually agreed upon.
It could be the currency of both parties, the currency of a third country or, for example, the (SDR) of the International Monetary Fund (IMF), the European Monetary System of Europe, etc.
It is common practice to use one currency as the unit of account for settlement accounts, but sometimes both currencies are used as the other’s unit of account.
