The World’s 10 Most Traded Currencies

Yahoo Finance, “Top 10 Cryptocurrencies by Market Capitalisation”, accessed July 1, 2020. Bank of England, “BIS Triennial Survey of Foreign Exchange”, accessed June 30, 2020. Federal Reserve Bank of New York, “The Foreign Exchange and Interest Rate Derivatives Markets”, accessed June 30, 2020. Euromoney, “Euromoney FX Survey 2019”, accessed June 28, 2020. All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team.

So, having explored the 6 Major Forex Currency Pairs, you should now be confident to be able to step into the Forex trading world and place your first Forex trade with Hantec Markets. You can learn more about Forex and currency trading here. The fifth most popular currency in the world is the Australian Dollar. These are uncharted waters, and only time will tell when it comes to the evolution of trading the Yen.

So, the trading volumes and prices of commodities influence the strength of the Australian dollar. The Canadian dollar is the world’s sixth most traded currency with an average daily trading volume of about $166 billion. Canada is a leading producer and exporter of commodities. The United States is Canada’s largest trading partner. The US accounts for 75% of Canada’s exports and roughly 50% of its total imports.

Another major currency pair is the USD/JPY. The US Dollar to Japanese Yen currency pair is the second most commonly traded pair after EUR/USD. In simpler terms, this currency pair indicates the number of Japanese Yen required to purchase one US dollar. Generally, USD/JPY has very high liquidity, however, JPY can also be viewed as a ‘safe haven’ currency during periods of global economic uncertainty.

Egyptian Pound EGP

It’s still an emerging market currency, but its share has grown from 4% in 2016 to 4.3% in 2019. The currency’s exchange rate is still tightly controlled by the PBOC, though China would want the world to believe otherwise. The New Zealand dollar has held its 10th spot for a decade. According to the Bank of International Settlements , New Zealand’s currency is involved in 2.1% of forex trades.

The New Zealand dollar is commonly traded with the Australian dollar. Currency exchange is a profitable business because so many people, businesses, and organizations engage in it every day. It is also important to note that the most traded currencies in the world aren’t shlomi yoshai necessarily the most valuable currencies in the world. The Euro is the official currency of the European Union and it is issued by the European Central Bank . The US Dollar is the official currency of the United States of America and it is issued by the Federal Reserve.

Here we take a look at the ten most traded currencies in the world. The ranking is based on data from the Bank of International Settlements. The second most common currency pair in the UK market isn’t a currency pair per se – rather, 23% of the market’s turnover involves the US dollar and a currency other than EUR, JPY, GBP, and AUD.

Investopedia shares this is due to the fact that “at one time, its GDP represented 50% of the world’s output.” The dollar is also used many times as a benchmark for other countries to set their exchange rates. The dollar’s strength is the reason governments are willing to hold the dollar in their foreign exchange reserves. Governments acquire currencies from their international transactions.

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They are split into a base currency and a secondary quote currency. As the value of the yen often increases in line with demand for these products, many forex traders pay attention to economic releases. These can include the BoJ meeting announcement, GDP data, the index of industrial production, the Tankan survey, and unemployment numbers.

The USD/JPY currency pair accounted for 13.2% of forex trades in 2019. This pair is commonly referred to as Gopher, Yen, or Ninja. In 2016, it accounted for 17.8% of trades.41BIS, “Triennial Central Bank Survey”, accessed June 29, 2020. The second most popular currency in the forex market is the Euro – accounting for 32.3% of trades.30BIS, “Triennial Central Bank Survey”, accessed June 29, 2020. Pepperstone, the second-largest broker in Australia, has an average daily trading volume of $6.7 billion.28Wealth&Value, “Largest Forex Brokers in The World 2020”, accessed June 29, 2020.

Japanese Yen Fact Sheet

Adopted by various countries around the world in the late 19th and early 20th century, the gold standard guaranteed the value of national currencies. Any note could be converted into a certain amount of gold. Globalization, travel, and the Internet made it easier for people to invest in other countries. Though all currencies serve their purpose, there are ten currencies that are more popular than others.

They are used for different reasons, and a basic understanding of these currencies can help you better comprehend other types of currency as well. Here are the other most traded currencies in the list which are worth mentioning. It accounts for an average of more than $550 million per day. The Japanese Yen is the official currency of Japan and it is issued by the Bank of Japan. Check out our article about the USD vs the Yen to find out if the Yen is stronger than the US dollar. 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.

This became evident during the 2008 financial crisis. Non-American banks had $27 trillion in international liabilities denominated in foreign currencies. Of that, $18 trillion was in U.S. dollars. The pound sterling is theUnited Kingdom’s official currency, including its territories.

The Japanese Yen comes in at third place, with 16.8% of all trades involving this currency. However, the Japanese Yen’s share has dropped 5% in the last three years.31BIS, “Triennial Central Bank Survey”, accessed June 29, 2020. The most popular trading platform is still the classic MT4, which is used by 85% of traders. The second most popular platform is the MT5, which is used by only 6% of traders.16Forex School Online, “Forex Statistics & Trader Results From Around the World”, accessed June 28, 2020. 45% of traders spend 1-2 hours each day trading, while only 14% spend more than 6 hours per day.14Forex School Online, “Forex Statistics & Trader Results From Around the World”, accessed June 28, 2020. 41% of traders average between 9 and 20 trades each month.13Forex School Online, “Forex Statistics & Trader Results From Around the World”, accessed June 28, 2020.

They also receive them from domestic businesses and travelers who redeem them for local currencies. This is New Zealand’s official currency that is issued by the Reserve Bank of New Zealand. It ranks as the 10th most traded currency in the world with approximately US$65 billion in daily average trading volume. It is the European Union’s official futures trading system currency issued by the European Central Bank and accounts for approximately €1 trillion indaily average trading volume. The US dollar is the United States’ official currency issued by the Federal Reserve. It ranks as the number one most traded currency in the whole world with a daily trading average volume of approximately US $2.9 trillion.

Most Traded Currencies in the World 2021

Although there is no strict definition of the term, it is generally used to refer to the 7 most popular currency pairs – all of which involve the US dollar on either the base side or the quote side. In the foreign exchange market, the dollar rules. Around 90% offorex tradinginvolves the U.S. dollar. The dollar is just one of the world’s 185 currencies according to the International Standards Organization List, but most of these currencies are only used inside their own countries. A global currency is one that is accepted for trade throughout the world. Some of the world’s currencies are accepted for most international transactions.

Issued by the Federal Reserve , the US Dollar is the official currency of the United States of America. Open a live account to start trading straight away or practice first with virtual funds on our demo trading account. On Friday, the stock will trade on a split-adjusted basis, meaning one share will be worth one-fourth of what a share was worth previously.

There are both pros and cons of a single, cross-border currency adopted by multiple economies. The ability to pay for goods and services in different countries without exchanging currencies is a huge plus. Still, drawbacks include ceding control of monetary policy for the greater good of the entire block. The US Dollar is the most dominant currency which is traded more often than any other currency in the world, forming part of 88% of all trades. The Tunisian Dinar trades at around 2.70 TND for 1 USD.

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This could happen as a result of increased U.S. deficit spending and printing of U.S. China called for the International Monetary Fund to develop a currency to replace the dollar. In March bitit review 2009, China and Russia called for a new global currency. Federal Reserve had to increase itsdollar swap line. That was the only way to keep the world’s banks from running out of dollars.

The yen accounts for about US$554 billion in terms of the daily average trading volume. This means that Forex pairs that were once strong can depreciate following economic changes. However, there are some currency pairs whose value tends to remain stable or appreciated during times of economic instability. If you want to test your trading strategy with popular Forex pairs, try our free demo account which includes live market quotes and a range of Forex trading indicators. You’ll be able to view in real-time how the currency pairs perform and familiarise yourself with the trading tools and terminology. Forex trading does come with a large element of risk and you need to be careful.

Most international transactions are done in US$. This makes it the most dominant and the most used currency in the world market. This can be attributed to the fact that Japan is one of the world’s largest exporters, in dollar terms.

In addition, the cost of milk and the number of tourists usually causes the NZD’s value to increase. 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. The U.S. dollar is the most traded currency in the world not only because it is widely accepted in other countries, but because it serves as the unofficial global reserve currency. The U.S. dollar, which is sometimes called the greenback, is first and foremost in the world of forex trading, as it is easily the most traded currency on the planet.

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If the US dollar is not one of the currencies in the pair, it is not considered a major currency pair. EURUSD signifies the number of US Dollars needed to purchase one Euro. EURUSD is seen as the most important Forex pair as USD and EUR are the two most-traded currencies globally and also the first and second-largest reserve currencies. The Euro was launched in 1999 originally replaced 11 national currencies and now is used in 19 European countries by over 300 million individuals. One of the biggest markets in the world is the Foreign Exchange Market , and it accounts for approximately €6 trillion worth of daily trades. This market rose due to the need for a system that would enable different nations can exchange their currencies for purposes of Trading.

However, Forex trading has existed in one form or another for a very long time – just about as long as humans have used coinage. Japan’s national currency is a behemoth in Asia, and investors often observe the state of the yen to get a better perspective on Asia’s economy as a whole. Professional investors also use the yen as a carry trade. Japan is known for its negative interest rate policy, and thus many investors buy yen and later exchange it for currencies that are more valuable, allowing them to make a profit on excess interest.

The currency is likely to appreciate when interest rates are relatively high compared to those on offer in other countries, and depreciate when they are relatively low. The country’s reputation for financial services and banking secrecy, relatively sound monetary policies and low levels of debt have made the Swiss franc a ‘safe-haven’ currency. This means it tends to rise in times of global economic uncertainty as money pours into the country. The euro may be the most “politicized” currency actively traded in the forex market. The official currency of the majority of the nations within the eurozone, the euro was introduced to the world markets on Jan. 1, 1999, with banknotes and coinage entering circulation three years later.

Hong Kong was once a colony of Great Britain, and its early currency systems are indicative of the former colony’s relationship to the UK. In 1863, the British Crown established a mint that would make money just for Hong Kong, but it minted coins that were unpopular with locals. However, the United Kingdom stopped using the gold standard in 1931, and the US did the same two years later.