World’s 5 Most Traded Currencies

You may have heard about the major currencies of the world – the United States Dollar, the Euro, the Pound Sterling, the Japanese Yen and so on. But are the most traded currencies too? Let’s take a look at the most traded currencies in the world that impact the forex market as well as the global economy.

#1 – Australian Dollar (AUD)

The Australian dollar is a popularly traded currency. The Australian economy is large. High interest rates, relative economic stability, and a non-interventionist government – all come together to make the AUD an excellent investment. Despite the presence of other important currencies in the Asia-Pacific region, the Australian dollar is a popular reserve currency that boosts its market share significantly. While the strong US dollar has often disturbed the markets, the AUD remains relatively constant.

#2 – Pound Sterling (GBP)

Until the 50s, UK’s Pound sterling held the title of the ‘world’s reserve currency’. The British Empire had spread to every corner of the globe over the past few centuries, which contributed to its popularity across the world. While the British influence has reduced, the currency has held its status in the FX market.

The high value of the GBP relative to the US dollar, euro, Canadian dollar, and more, makes it an expensive investment. But the strength of the British economy and common use of the pound in Commonwealth countries will ensure the pound remains an important currency, always. Along with the USD, EUR and JPY, the GBP is part of the ‘basket’ that forms the basis of the IMF special drawing rights (SDRs).

#3 – Japanese Yen (JPY)

China has surpassed Japan as the world’s second largest economy, but the Japanese yen continues to hold fort for a much larger share of the FX market. Japan relies on trade and that is rapidly expanding. This has made the currency soar high and the foreign markets gobble up the country’s currency.

#2 – The Euro (EUR)

The Euro makes to the second place due to sheer volume. It is the official currency of 19 different countries and the daily usage and circulation of the euro is greater than even the USD.

#1 – US Dollar (USD)

This one is no surprise. Since the end of World War II, the US dollar has been at the forefront. The US economy’s strength, it being a reserve currency and the number of economies linked with America, all point to the fact that the US dollar is here to stay and will remain a popular investment.

If you are looking for foreign currency exchange without any hassle in Dallas or San Antonio, Texas, call Texas Currency Exchangeat 888-975-6009. At Texas Currency exchange, we will help you with any questions about exchange rates, the type of currency you will need for your travels and more.

About This Author

Texas Currency Exchange Joined: May 31st, 2019