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In economics, a local currency, in its common usage, is a currency not backed by a national government ( and not necessarily legal tender ), and intended to trade only in a small area.

As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or uncomfortable with traditional bartering.

These currencies are also referred to as community currency, and are a form of alternative currency or complementary currency.

They encompass a wide range of forms, both physically and financially, and often are associated with a particular economic discourse.