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That is intended behaviour but I agree its confusing and should be re-worked usability wise.
The currency list is only used in the list at the Buy/Sell screens.
You can switch in the settings between sorting by trades/offers and alphabetically.
Under Settings > Preferences, I have limited the national currencies and altcoins that I want displayed:
Yet all currencies are shown in the offer book currency dropdown:
Additionally, it is hard to locate a particular currency because it is sorted by open offers rather than alphabetically.
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