The global foreign exchange market is growing rapidly year after year. Currencies are bought and sold more frequently today compared to a few years back. Among all the major traded currencies, the US Dollar is the most traded currency.
Most international transactions are done in US$. This makes it the most dominant and the most used currency in the world market. While the US Dollar is the most used currency in the world, there are other major currencies which are prominent in the world trading market.
Let’s take a look at the most traded currencies in the world.
Top 3 Most Traded Currencies In The World
Though the Kuwait dinar is the most expensive currency in the word, it is not the most traded currency in the world. Below, we look st the currencies with the highest volume of trading in the world:
1. US dollar (USD)
The US Dollar is the official currency of the United States of America and it is issued by the Federal Reserve. Though it is not the most expensive currency in the world, it has the number 1 spot in the list of the most traded currencies worldwide. This is why its the most popular currency in the world. The US is the world’s largest economy and a major contributor to international trade. The value of the US Dollar gets influenced by various factors such as the economic performance of the US market and the rise and fall of other markets where the US Dollar is used.
2. Euro (EUR)
The Euro is the official currency of the European Union (EU) and it is issued by the European Central Bank (ECB). It is the second most traded currency in the world. The Euro is primarily traded within the European Union. Another interesting thing about the Euro is that it is the second biggest reserve currency in the world.
3. Japanese Yen (JPY)
The Japanese Yen is the official currency of Japan and it is issued by the Bank of Japan. It is the third most traded currency in the world. It accounts for an average of more than $550 million per day.
Here are the other most traded currencies in the list which are worth mentioning.
- Pound sterling (GBP)
- Australian dollar (AUD)
- Canadian dollar (CAD)
- Swiss franc (CHF)
- Chinese renminbi (CNH)
- Swedish krona (SEK)
- New Zealand dollar (NZD)
It is also important to note that the most traded currencies in the world aren’t necessarily the most valuable currencies in the world.