Some of the Differences in Currency Money and Giral Money You Need to Know

The existence of money as a means of payment holds an important role for the rotation of the economy in a country, one of which is Indonesia. Every business activity, both sales and purchases, will not be separated from money. Based on the type, money is divided into two parts, namely currency that we usually encounter everyday, and demand deposits. However, even though it has the same function as a payment instrument, it turns out that there are differences between the two types of money, let’s see what the differences are .

Definition of Currency

Currency is a form of currency that we often encounter in everyday life. Currency consists of two forms, namely metal and paper. Based on the Central Bank Act No. 13 of 1968, currency is defined as a legal payment instrument and must be accepted by the public when buying and selling transactions. The party authorized to issue currency is Bank Indonesia. This money has a predetermined form and nominal. In Indonesia, the largest amount of currency is 100,000 denominations, and the biggest nominal is 1,000 .

In terms of practicality

Currency tends to be less practical because of the shape and weight it has, making us feel troublesome and risky if we have to carry it everywhere in large quantities. However, even so, currency remains more attractive than demand money because it is easier to spend.


If we save currency and experience loss, we can only make reports to the security authorities, but it will be difficult to trace and may not be able to return to us, considering that there is no identity in the money. Currency will be easy to spend immediately and change hands.

Understanding Giral Money

The next legal payment is demand deposit. According to Law No.7 concerning Banking in 1992, the understanding of demand deposits is proof of bills in commercial banks that can be used at any time as a means of payment. This money is in the form of securities such as checks, checking accounts, billiards, and so forth. Demand money is also called demand deposit, which means that the bank account balance is in the bank and can be used at any time by the owner. Demand money is economically legitimate money but not legally. This money only applies to some circles.

In terms of practicality

Demand money tends to be more practical, because whatever nominal you want can be written on a piece of paper. Charges are also easier to store and carry anywhere without fear of being heavy. Charges allow you to make transactions with any nominal value without having to fear losing. Usually the use of demand deposits is more among entrepreneurs who often conduct large-scale transactions.


Demand money has an identity that can be used to identify the owner if the money is lost. And if the money has already been lost, the owner or recipient of demand money can report to the Bank to block it so that it will avoid misuse of unauthorized parties.

From the review of the article above we can find out, the difference from currency and demand money with all its advantages and disadvantages. Basically, whatever kind of money we need as a means of payment for transactions, we should be wise in managing it, especially if we have a business.

You can get good money management by recording all forms of expenses and receipts in the business through the accounting system. Journal is one of the online accounting software . With Journals, you more easily manage your business finances with various features such as product checking, providing invoices, managing company assets with guaranteed bank-equivalent security and information that can be accessed anytime and anywhere in realtime . You can get more information about the Journal here.

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