Currency, is a system of money in general use in a particular country at a specific time. A national currency is a legal tender issued by a country’s central bank. The central bank is also known as monetary authority. Currency play an important role in country development. Each country has its own currency. All currency has the same basic goals. It helps encourage economic activity by increasing the market for various goods. The Euro and the US Dollar are the most preferred used foreign currencies. The article is about top 10 most used currency in the world.
#1 US Dollar (USD)
US dollar is the most used currency in today’s world. It is the official currency of the United States. The Federal Reserve (Fed), is issuing the US dollar. Presently, the US is the world’s largest economy. The US dollar is the world’s primary “reserve currency”. It holds nearly 63% of currency reserves by volume. Many important commodities are priced in dollars, including gold, oil and copper. These few reasons make the US dollar most popular worldwide. It is the number one most traded currency globally, accounting for a daily average volume of US$2.9 trillion.
#2 Euro (EUR)
The second most used currency in the world is the Euro. It is the official currency of the European Union (EU). This second top currency of the world is issued by the European Central Bank (ECB). It is also the world’s second-biggest reserve currency. The Euro is estimated to make up roughly 20% of global reserves by volume. It accounts for a daily average volume of nearly US$1.1 trillion. The euro’s value is strongly influenced by political and economic developments.
#3 Japanese Yen (JPY)
The Japan country has Japanese yen as its currency. Japanese yen rank third in the list of top used currency of the world. It is issued by the Bank of Japan (BoJ). It accounts for the third-biggest reserve currency of the world. Estimated to make up around 4.9% of global currency reserves. The yen’s value is highly dependent on Japan’s economy. Japan is a key producer for sectors like vehicles, electronics, machines, ships & textiles. The demand and export rate will determine the economy. Japanese yen has a daily average volume of US$554 billion.
#4 The Pound Sterling (GBP)
At number four, from our top currency list, is of the pound sterling. It is the official currency of the United Kingdom and its territories. The pound’s value depends largely on the UK’s economic performance. The Bank of England’s (BoE’s) monetary policies, GDP & employment reports affect the pound’s value. It is the world’s fourth-biggest reserve currency, with 4.5% of global reserves by value. In the global trade market, its daily average volume is nearly US$422 billion.
#5 Australian Dollar (AUD)
The Australian dollar is the official currency of the Commonwealth of Australia. It is issued by the Reserve Bank of Australia (RBA). Its daily average volume is of US$223 billion. So the Australian dollar is the fifth most used currency in the world. By reserve volume, AUD is the sixth currency in the world. Estimated to account for 1.8% of global reserves by value. The Australian dollar’s value is influenced by commodity prices & the ‘terms of trade’. Shifts in the trading volumes and prices of main mined commodities can impact AUD. The size of the country’s foreign liabilities, also influence the currency value.
#6 Canadian Dollar (CAD)
the sixth most traded globally currency is the Canadian dollar. It is the official currency of Canada. It is issued by the Bank of Canada (BoC). The currency has 2.02% of global reserves by value. The currency value goes with the commodities pricing. US is Canada’s trading partner. It accounts for more than 75% of all exports and 50% of its imports. So, Canadian dollar are particularly sensitive to changes in the value of the US dollar.
#7 Swiss Franc (CHF)
Among the top ten most used currency of the world, at seventh number is The Swiss franc. It is the official currency of Switzerland, which is issued by the Swiss National Bank (SNB). CHF has a global reserve of 0.18%. The Swiss franc, a ‘safe-haven’ currency. At times of global economic uncertainty, the currency value rises. The currency value is influenced by strength of the euro. The economic performance of countries of the same also effect the CHF value. The currency, accounting for a daily average volume of US$164 billion.
#8 Chinese Renminbi (CNH)
The Chinese renminbi is also referred to as the ‘yuan’. It is the official currency of the People’s Republic of China. Globally it occupies seventh most reserve currency with a share percentage of 1.23%. . It is issued by the People’s Bank of China (PBoC). The US and Europe are China’s major trading partners. The value of the renminbi depends heavily on the country’s terms of trade. As the export of goods increases, the growth in currency value is also expected. The currency, accounting for a daily average volume of US$142 billion.
#9 Hong Kong Dollar (HKD)
At position nine in, the most used currency of the world is The Hong Kong dollar. It is the official currency of Hong Kong. The currency is issued by the Hong Kong Monetary Authority (HKMA) in HKD$10 notes. The currency exchange rate is fixed. The value of its exchange is around HK$7.80 to US$1. There are 3 authorised banks. The Hong Kong & Shanghai Banking Corporation (HSBC), Standard Chartered Bank & Bank of China. The Hong Kong dollar accounts for a daily average volume of US$117 billion.
#10 New Zealand Dollar (NZD)
At position ten is the New Zealand dollar. It is one of the most used currency of the world. It is the official currency of New Zealand, issued by the Reserve Bank of New Zealand. Country’s imports, exports & trading partners, decide the value of the country currency. The Reserve bank of New Zealand global interest rates impacts the currency value. The currency accounts for a daily average volume of US$68 billion.
After knowing about the top 10 most used currencies of the world, you must be thinking about money. Now you know about the values of top currencies in the world. There are certain reasons which decide the exchange value of currency. What is the currency of your country? Is it among the top currency of the world? If yes or not, find the reason for the same. Share your answers in the comment box present below. If you love to read more, specify the topic of your interest.
