The most-traded currencies - The Forex market is effortlessly the largest and the most liquid in the world.
Millions of people (parties) trade trillions of dollars every single day, with an average of $5.1 trillion traded per day.
A vast majority of trading occurs in huge financial hubs in the United States, the United Kingdom, Japan, Singapore, Switzerland, and Hong Kong.
The most used currency in the world is the US Dollar accompanying with other world currencies.
For new and current Forex market participants, one of the first and most important steps is to be very familiar with the most traded currencies by value in the whole world.
In this article, we are going to go through the most traded currency pairs in the world and the qualities that make them accessible.
It will boost your Forex knowledge and help you make more informed steps towards becoming a successful trader.Before we get into the most traded currencies in the world let’s look at the most expensive currency against the US dollar as it is number one on our most traded list.
|Rank||Currency||ISO 4217 Code|
British Pound Sterling
Cayman Islands Dollar
|Rank||Currency||ISO 4217 Code|
|8||Chinese Yuan Renminbi||CNY|
|11||New Zealand Dollar||NZD|
|13||Hong Kong Dollar||HKD|
|15||South Korean Won||KRW|
|20||South African Rand||ZAR|
The most used currency in the world is the US dollar, effortlessly. The main reason behind the US dollar overrules all currencies is the stability of the US government and economic vitality.
A reserve currency is a currency that is detained by the government and some institutions in large quantities as a portion of their foreign exchange funds.
Usually used for investments or international transactions.
Today the US dollar is the most important reserve currency in the world. It is representing the main reason that makes it the most traded commodities in the world.
Dollarization occurs when residents of a particular country overuse the U.S. dollar or another currency with or instead of their local currency.
Some cases involve unofficial dollarization when specific individuals withhold foreign currency bank deposits or bond notes (paper money) for protection against increased inflation in local currency.
On the other hand, official dollarization takes place when a government decides to adopt a foreign currency legally as the primary money.
Besides, most used currency in the world, the US dollar represents a benchmark currency for particular countries that decide to fix their money on the US dollar value.
Intending to try to stabilize its exchange rate, China has had its currency (the Yuan) pegged to the US dollar for a long time.
Another vital characteristic of one of the most tradable currencies, the US dollar, is that most commodities like precious metals and crude oil come denominated in the US dollar.
It suggests that these commodities are vulnerable to value fluctuation according to the supply and demand law.
Since the euro introduced to the world, it has steadily crawled up to become the second-highest value currency in the world.
Not only this, but it is also the second reserve currency following the dominant US dollar (one of the major currencies).
The euro is a broadly used and trusted currency worldwide and quite dominant in the Forex market, adding to the liquidity of any money, which it trades within.
Speculators often trade the euro based on the Eurozone health in general, its member countries.
And also the most important economic and political events that take place within its borders. Political events that take place within the Eurozone usually results in the euro trading volumes rising.
Apart from official but as the most traded currencies in the world for the majority of the Eurozone.
A lot of African and European countries have their currencies fixed onto the euro to stabilize their exchange rate. It is very similar to the US dollar case mentioned above.
There are 22 countries as territories overall outside of the Eurozone that has pegged their currencies on to the euro.
The Japanese Yen is, without a doubt, on the top of the most traded currencies in all of Asia. It is also the primary gauge of the fundamental strength of the manufacturing and export economy of Japan.
Many measure the Pacific region’s overall health using the Japanese Yen.
It includes economies like Singapore, South Korea, and Thailand whose currencies are traded a lot less in the international foreign exchange markets.
The carry trade strategy is relatively dependent on the stability of asset prices. It is because any opposing movement of the exchange rate can quickly eliminate the critical interest rate variance.
In Forex, the Yen is also very well known for the vital part it plays in the carry trade.
Due to stagnation, the Bank of Japan has had an interest rate that remains at 0%. Furthermore, in the last two decades, sometimes even harmful.
Hence, Traders have decided to borrow the Yen at reduced interest rates, which they will then exchange for a different currency, which pays higher interest rates.
Therefore, traders benefit because they pay low-interest rates on the money that they borrow. However, they receive high-interest rates on the money they trade.
The carry trade is an essential element for keeping the Japanese Yen on top of the list of the most traded world currencies by value.
At times, when most currencies traders are vulnerable to risk or incline to it, such as inflation situations, moments of economic uncertainty, and other crisis, history has proven the Japanese Yen has stood as a haven currency.
It remains active, because of its stability during these times as compared to other most traded world currencies.
The pound popularly known as the pound sterling falls at number four on the most bought currencies list.
For a couple of decades, the pound was the second most used currency in the world.
However, due to the British Empire’s deterioration and the rapid rise of the Euro, UK pound lost some strength.
The relative value of the pound in comparison to other major currencies in the world makes it eligible to act as a colossal reserve currency.
Despite the exit planned for March 2019, the UK is still an authorized member of the EU until then.
However, it decided not to have the Euro as its official currency for several reasons. Historical reasons include pride in the Pound Sterling as well as retaining the domestic interest rates.
According to Forex traders, the value of the British pound depends on the stability of the economy and politics.
As compared to other most tradable currencies by value, it has a relatively high cost, and this makes it a vital currency benchmark for many nations as well as being very liquid in the Forex market.
Forex traders will often base the pound value on the strength of the British economy and the government’s political stability.
Due to its increased cost, the pound is a vital benchmark currency for many nations. It also acts as a very liquid component in the Forex market.
Despite the recent creation (1966) of the AUD to replace the Australian pound. It escalated very quickly to become one of the most traded commodities by value.
It is also trendy in the Asia-Pacific region because of the stable Australian economy.
The interest rate of the Royal Bank of Australia is higher than the others most of the time. It makes it very popular for currency carry trades.
The Australian dollar ties with commodities such as gold and silver. Therefore, the health of the AUD connected closely to these two commodities.
It also results in Australia’s interest rates and inflation control being highly dependent on the development of commodities.
The AUD also has a historical relationship with Gold’s spot price. This close relationship presents an incredible opportunity to create a pair of trading strategies.
The Canadian dollar is also popularly known as the loonie and the leading commodity currency worldwide.
It means that it moves alongside the commodities market, namely minerals, crude oil, and precious stones, as Canada is a massive exporter of commodities of this sort.
The volatility of the loonie is very high regarding the movement in prices, notably crude oil — Canada, located very close to the United States, the most extensive consumer base worldwide.
Therefore, the Canadian economy and the dollar remains remarkably linked to the US dollar movement. It includes the strength of the US economy.
It is one of the only major currencies that did not get pegged to the USD after World War II. It has named it a “neutral currency.”
When the economy expands, and other currencies or assets increase in value.
The Swiss franc moves in the opposite direction, which makes it a haven currency, which is helping her remain on top of the list of the most traded currencies by value.
The Swiss franc also qualifies as a carry trade currency, due to the economic stability, high liquidity, and low rates policy. Its value is not dependant on economic conditions.
The economic conditions of Switzerland do not determine the value of the Swiss franc. Instead, the primary dictator of the Franc is the interest rates policy of the Swiss National Bank.
It is because the Franc demand gets deduced from it being a trustworthy, liquid, and stable currency.
Well, other than these seven most tradable currencies, we also have a complete list of 20 most traded world currencies on the whole.
Yuan Renminbi successfully included in the 20 most traded currencies list. Sometimes the Chinese currency referred to as the Yuan, and sometimes it is called Renminbi.
Why China has two different currency names? Well, both names are entirely right, but in particular situations.
In 1949, the Communist People’s Republic of China introduced the official name of the currency as “Renminbi” at the time of its foundation. It means “the People’s Currency.”
On the other side, “Yuan” is the name of a unit of the currency “Renminbi.” If something may cost one Yuan, then it would not mean that you could say it cost one Renminbi.
Well, the word “Yuan” goes back more than “Renminbi.” This word comes used in Chinese for dollar –the silver coin.
Chinese Yuan Renminbi has a 3.97% share of turnover with an average of 202 billion US dollars, and this currency is the territory of China. Chinese
Sometimes the Swedish Krona referred to as the Swedish crown, which is the monetary unit of many countries such as Norway, Denmark, and Sweden.
Swedish Krona is the 9th highest valued currency in the world. The Swedish krona seemingly divided into 100 ore.
It symbolizes as Kr and has SEK as a code of currency. The Sveriges Riksbank, which is also known as the Swedish National Bank, Riksbanken or Bank of Sweden, who is responsible for issuing Swedish banknotes and coins denominated in the krona.
It is also one of the 20 most traded world currencies. The Swedish krona has a 2.22% share of turnover with an average of 113 billion US dollars, and this currency is the territory of Sweden.
Currently, several coins and krona denominated banknotes are in circulation. Ranging between 20 and 1,000-krona notes have values, while coins have denominations between 1 and 10 kronor.
Initially, the Mexican peso based on the official currency of Spain, which is a Silver dollar. From the eight real coins, the Mexican name originated.
And these were issued by Spain for Mexico, which got created from pure silver.
To use a distinct border and precise weight to guard against bogus, this was the first currency, which made it renowned.
In 1905, the golden Peso value reduced to 49.3%, whereas the silver Peso remained the same.
After the Oil Crisis of the 1970s, for many years, Mexico faced inflation and debt defaults, driving to the substitute of the currency with the Nuevo Peso.
The Nuevo Peso valued 1000 Mexican Pesos.
The Mexican peso has 2.20% share of turnover with an average of 112 billion US dollars, and this currency is the territory of Mexico.
Due to all these factors, it becomes one of the most used world currencies.
Since 1967, the official currency of New Zealand is the New Zealand dollar.
The same unit of the currency remains used in the Cook Islands, Tokelau, Niue, and the Pitcairn Islands.
Commonly, this currency is called kiwi, which gets named after the national bird, and it appears on the 1 dollar coin.
New Zealand dollar is the most traded currency pairs in the world. New Zealand dollar has a 2.06% share of turnover with an average of 105 billion US dollars, and this currency is the territory of New Zealand.
Undoubtedly, the Singapore dollar is one of the most traded world currencies.
Right now, with an exchange rate of 1.3 against the US dollar, it is possibly the most traded currency pairs in the world, though it is not stronger than others are.
The Singapore dollar has achieved in less than a hundred years what it took others centuries to complete. On the other hand, it looks different from each one of the players.
Singapore dollar has 1.79% share of turnover with an average of 91 billion US dollars, and this currency is the territory of Singapore.
For the sovereign city of Hong Kong, the money used is the Hong Kong Dollar.
Not only Hong Kong but is widely used in Macau and mainland China even when it is not officially registered currency there.
Hong Kong dollar has 1.73% share of turnover with an average of 88 billion US dollars, and this currency is the territory of Hong Kong (China).
The Norwegian Krone (NOK) is the official currency of Norway, and the country’s central bank, the Norges Bank regulates and controls the circulation of it.
Overall, eight series of banknotes issued, including October 2018, issuance of a new 50-Krone, and 500-Krone bills.
Customers may still use the 50-krone and 500-krone banknotes from the older series until 18 October 2019.
The Norwegian krone has a 1.67% share of turnover with an average of 85 billion US dollars, and this currency is the territory of Norway.
Undoubtedly, the Norwegian krone is one of the most used currencies in the world.
The official currency of South Korea is the Korean Won. In East Asia, South Korea is an independent state, which located on the southern portion of the Korean Peninsula.
The capital and largest city, Seoul, have a population of over 10 million people. The South Korean won has been in use for more than thousands of years.
The Yen replaced the won at par during the Colonial era.
South Korean won has a 1.65% share of turnover with an average of 84 billion US dollar, and this currency is the territory of South Korea.
The Turkish lira has 1.40% share of turnover with an average of 71 billion US dollars, and this currency is the territory of Turkey.
The Central Bank of the Republic of Turkey made the latest currency sign of Turkish Lira in 2012. After a countrywide contest, the current symbol got selected.
Tülay Lale made the new symbol, which is composed of the alphabet “L,” shaped like a half anchor, as well as the entrenched double striped letter “T” angled at 20 degrees.
On 1 January 2009, a new series of banknotes, the “E-9 Emission Group,” entered spread along with the E-8 group stopped to be valid after 31 December 2009.
The Indian Rupee considered as the standard currency of India and divided into 100 paise (which is singular paisa). The Reserve Bank of India controls the issuance of the coin.
Indian Rupee is one of the most traded commodities by the value that comes at number 17 in the 20 most traded currencies list.
The Indian rupee has a 1.14% share of turnover with an average of 58 billion US dollars, and this currency is the territory of India.
In India, the Rs 500 and Rs 1000 ended to be legal tender in 2016. To help the corruption and illegal cash holdings, in an attempt took place in terms of removal of the sect.
The same year in November, the Reserve Bank of India started issuing ₹ 2000 value banknotes in the Mahatma Gandhi Series.
Among the 20 most traded currencies list, the Russian Ruble also makes its place successfully.
The Ruble has been the currency of Russia for almost 500 years. Throughout history, in several different countries.
Due to several changes in the value of the currency, there have been different versions of the ruble.
Russian Ruble has a 1.14% share of turnover with an average of 58 billion US dollars, and this currency is the territory of Russia.
Since 1994, the real is the legal tender in Brazil and currently is the dominant currency in entire Latin America. Although this currency has suffered lots of changes because of economic crises.
Still, it stands in the list of 20 most traded currencies list successfully.
Brazilian real has a 1.00% share of turnover with an average of 51 billion US dollars, and this currency is the territory of Brazil.
In denominations of 1, 5, 10, 50, and 100 reais, banknotes got introduced in 1994. BCB, on 31 December 2005, discontinued the production of the 1 Brazilian real note.
South Africa has the official currency rand, which divides into 100 cents. It has a 1.00% share of turnover with an average of 51 billion US dollars, and this currency is the territory of South Africa.
Throughout South Africa, multiple currencies moved as a trading center.
The Guilder was the first official currency, and during the late 17th century, Rixdollar was the first South African currency that was used to include paper notes.
In 1826, during the British occupation, the Cape Colony was put on a reasonable basis.
However, other currencies such as French Francs, US Dollars, Indian Rupees, and Spanish Dollars keep on circulating.
The Reserve Bank of South Africa in 1961 changed the Pound under a decimalized system.
Now the 20 most traded currencies list seems completed. Ultimately, you have an idea of all the most traded currency pairs all over the world.
While trading, you can use any of the most traded commodities to execute useful trades.
Each currency has its particular features. And these features help them to be at the top of the most heavily traded currencies in the world.
Including the effect they have on the movement of prices to other currencies within the Forex market.
Understanding the primary factors that move money is a significant step toward becoming a successful Forex market participant.
©2020 Highway Media Group. All Rights Reserved.
* Disclaimer: Highway Media Group will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks.
Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Highway Media Group would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Therefore, Highway Media Group doesn’t bear any responsibility for any trading losses you might incur as a result of using this data. Highway Media Group may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.