The Forex market is the largest in the world with around $5 trillion average daily trade volume. It dwarfs the daily trade volume of the New York (NYSE), Tokyo (TSE), and London Stock Exchange (LSE) which stands at around $22, $18 and $8 billion respectively. In this article, we will take a look at the top 5 most traded currencies in the world.

US dollar
The United States Dollar (USD, US$) is the official currency of the United States and also eight other countries, including East Timor, Ecuador, El Salvador, Palau, Micronesia, Panama, Marshall Islands, and Zimbabwe. The US dollar is the most traded currency in the world, accounting for a daily average volume of around $2.2 trillion, making up a large proportion of the total average daily volume. There are a few reasons why the dollar is the most traded currency in the world – the US has the largest economy in the world at around $19 trillion.

Euro
The Euro (EUR, €) is the official currency of the European Union, and it’s the second most traded currency in the world at $800 million average daily volume. The Euro is the official currency of 19 out of the 28 EU member states. It was first introduced back on the 1st January 1999. Euro has one of the highest combined values of banknotes and coins in circulation in the world at €1.2 trillion.

Japanese Yen
The Japanese yen (JPY, ¥) is the third most traded currency in the world, making up a daily average volume of around $550 billion. Japan has the third largest economy in the world, just behind the United States and China at $4,8 trillion. The Bank of Japan issues the Japanese yen (BoJ), and it is also unofficially used in the African nation of Zimbabwe.

Pound Sterling
The pounds sterling (GBP, £) is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, South Georgia and the South Sandwich Islands, the British Antarctic Territory, and the Tristan da Cunha. The pound is fourth on the list of the most traded currencies in the world with a daily average volume of around $325 million. Sterling is worlds oldest currency still in use.

Australian Dollar
The Australian dollar (AUD, A$) is the official currency of the Commonwealth of Australia and is also an unofficial currency of Cambodia, Gambia, New Caledonia, Papua New Guinea, and Zimbabwe. It is the fifth most traded currency in the world with a daily average volume of around $174 million. The Aussie dollar, as it is usually referred to by foreign exchange trades is issued by the Reserve Bank of Australia (RBA).

By Klāvs Valters  
 @klavsvalters

This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.

 

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