The best currency in the world

The world's most traded currency

The Forex market, or as it is known as the foreign exchange market, is the basis and oldest of the financial markets in the world. It is also considered the most liquid and traded currency market around the world at the present time. The average daily trading volume is estimated at about $6.6 trillion, and the following shows the most traded currencies around the world, with some details about each currency:

U.S. dollar

The US dollar is the official currency of the United States of America, and it is issued by the Federal Reserve Bank, and it is referred to as the global symbol (USD) or the formal symbol ($), and the US dollar is the most traded currency globally in the foreign exchange market, according to the statistics of the Bank for International Settlements for the year 2019 AD, Statistics indicate that the average daily trading volume of the US dollar amounted to about $2.9 trillion in 2019.

euro

The currency of the euro is; Which is indicated by the abbreviation symbol (EUR) or the formal symbol (€) the official currency in nineteen out of twenty-eight countries of the European Union, which is called the Eurozone, noting that the start of issuing the euro currency in the financial markets was in 1999 AD And three years later, banknotes and their coins were introduced by the European Central Bank, and the euro currency is the second most traded currency around the world after the US dollar.

The average daily trading volume of the euro, according to the statistics of the Bank for International Settlements in 2019, was about 1.1 trillion US dollars. It should be noted that it is the second largest global reserve currency; As the total global reserves are estimated, based on economic statistics in 2018 AD, at about 20%, and given the price of the euro against the dollar; One US dollar is equivalent to 0.893 euros; This is according to the exchange rates for the year 2020 AD.

Japanese Yen

The Japanese yen is the official currency in Japan, and it is issued by the Bank of Japan, and it is referred to as the global symbol (JPY). The average daily trading volume of the Japanese yen, according to the statistics of the Bank for International Settlements in 2019, was estimated at about $554 billion, and economic statistics indicate that it is the third largest reserve currency; It represents about 4.9% of global currency reserves.

It should be noted that the Japanese yen is a basic measure of the strength of Japan's economy in terms of manufacturing, production and export, in addition to being a general indicator of the strength and stability of the Pacific economy. With regard to the price of the Japanese yen against the dollar, one US dollar is equivalent to 107.75 Japanese yen. Based on exchange rates in 2020.

Sterling pound

The pound sterling is the official and circulating currency in the United Kingdom, and in a number of other regions affiliated with it, such as: British overseas territories such as South Georgia and the South Sandwich Islands and the British territories in Antarctica, noting that the pound sterling is the oldest currencies used in the world until the present time , and is classified as the fourth most traded currency in the forex market; As it represents about 13% of the daily trading volume in it, and the statistics of the Bank for International Settlements in 2019 indicate that the average daily trading volume in the pound sterling amounted to about 422 billion US dollars.

The pound sterling currency is the fourth largest global reserve currency; It represents about 4.5% of global currency reserves, and it should be noted that the pound sterling is referred to as the global symbol (GBP), and is also known as the formal symbol (£), as for the exchange rate of the pound sterling against the US dollar; One US dollar is equivalent to 0.815 pounds sterling; This is based on the exchange rates in 2020.

Canadian dollar

The Canadian dollar is considered the official and circulating currency in the State of Canada, and it is known as the universal symbol (CAD), and is indicated by the formal symbol (C$); To distinguish it from the US dollar, knowing that the history of the establishment of this currency dates back to the year 1871 AD; When the Canadian Parliament passed the law adopting the Canadian dollar as the official unified currency in Canada, and economic statistics indicate that approximately 2% of the total global currency reserves are preserved in Canadian dollars; Accordingly, the Canadian dollar is the fifth largest reserve currency. As for the exchange rate of the Canadian dollar against the US dollar; One US dollar is equivalent to 1.368 Canadian dollars; This is according to the exchange rates in 2020.

Swiss franc

The Swiss franc is the official and circulating currency in the state of Switzerland, and it is known as the global symbol (CHf), and this currency is distinguished as a hard stable currency; it is often bought in the financial markets because of its reliability and stability unlike some other currencies, and it should be noted that the Swiss franc is used regularly as a global reserve currency, and it is the sixth most traded currency in the world; Its average daily trading volume is about 164 billion US dollars, based on the statistics of the Bank for International Settlements in 2019. As for the exchange rate of the Swiss franc against the US dollar; One US dollar is equivalent to 0.951 Swiss francs; This is based on the exchange rates in 2020.

The most powerful currency in the world

The relative economic strength of the United States of America plays an important role in supporting the value of its currency. As the global trading volume in US dollars is estimated at 1,671 billion dollars, and statistics indicate that half of it was outside the US markets; This is according to global economic statistics in 2018 AD, and the US dollar is characterized by its ability to trade with all other major currencies, and it is considered a global currency accepted for trade in all parts of the world and not only in the US states, in addition to being considered the largest unofficial global reserve currency; It is held by banks and central banks in most countries of the world.

The US dollar constitutes approximately 60% of the total reserves of the Central Bank of known foreign currencies, based on the statistics of the International Monetary Fund at the end of 2019 AD, which also indicate that 40% of the debts of countries in the world are issued in dollars; Therefore, foreign banks need to pump a lot of amounts in US dollars; In order to be able to do global business, and for all these reasons, the US dollar is the strongest global currency in the world.

The world's most expensive currencies against the US dollar

The following shows the ranking of the most expensive currencies in the world, starting with the highest value; By looking at its exchange rate against the US dollar: