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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 market for currencies around the world at the present time.

The best currency in the world


Its average daily trading volume is estimated at $6.6 trillion, and the following shows the most traded currencies around the world with some details about each of them:


U.S. dollar


The US dollar is the official currency of the United States of America, and it is issued by the Federal Reserve and is abbreviated as the global symbol (USD) or the nominal 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


Euro currency; Which is referred to by the acronym (EUR) or the formal symbol (€) the official currency in nineteen out of twenty-eight countries of the European Union, which is called the Eurozone, bearing in mind that the start of issuing the euro currency in the financial markets was in 1999 AD Three years later, banknotes and coins were introduced by the European Central Bank, and the euro 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 amounted to about 1.1 trillion US dollars. It should be noted that it is the second-largest global reserve currency; Where the total global reserves of them are estimated, based on economic statistics in 2018, 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.


Japanese Yen


The Japanese yen is the official currency in Japan, and it is issued by the Bank of Japan, abbreviated as JPY. The Japanese yen is the most traded currency in Asia, as well as the third most traded currency in the foreign exchange market; The average daily trading volume in the Japanese yen, according to the statistics of the Bank for International Settlements, 2019 was estimated at about 554 billion US dollars, and economic statistics indicate that it is the third-largest reserve currency; It represents about 4.9% of the world's currency reserves.

It should be noted that the Japanese yen is a basic measure of the strength of the Japanese economy in terms of manufacturing, production, and exports, in addition to being a general indicator of the strength and stability of the Pacific region's 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 the exchange rates in 2020.


Sterling pound


The pound sterling is the official currency and traded in the United Kingdom, and in a number of other regions affiliated with it, such as the British overseas territories such as South Georgia, the South Sandwich Islands, and the British lands in the Antarctic, noting that the pound sterling is the oldest currency used in the world until now It is classified as the fourth most traded currency in the Forex market; 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 British pound amounted to about 422 billion US dollars.

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


Canadian dollar


Canadian dollar To distinguish it from the US dollar, bearing in mind that the history of the establishment of this currency dates back to 1871 AD; When the Canadian Parliament passed the law to adopt the Canadian dollar as the official currency in Canada, and economic statistics indicate that approximately 2% of the total world currency reserves are held 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 the year 2020.


Swiss franc


The Swiss franc currency is the official currency and traded in the State of Switzerland, and it is known by the abbreviation of the global symbol (CHF), and this currency is characterized as a stable and difficult currency; It is often bought in the financial markets due to its reliability and stability, unlike some other currencies. It should be noted that the Swiss franc is regularly used 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 the year 2020.


The strongest 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; 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; According to global economic statistics in 2018, the US dollar is characterized by its ability to trade with all other major currencies, and it is considered a global currency acceptable for trade around the world and not only in the US states, in addition to being considered the largest unofficial global reserve currency; maintained by banks and central banks in most countries of the world.

The US dollar constitutes approximately 60% of the central bank’s total reserves of known foreign currencies, based on the statistics of the International Monetary Fund at the end of 2019, which also indicate that 40% of the world’s debt is issued in dollars; Accordingly, foreign banks need to inject a lot of amounts in US dollars; In order to be able to conduct global business, and for all these reasons, the US dollar is the strongest global currency in the world.


The most expensive currencies in the world against the US dollar


The following shows the arrangement of the most expensive currencies in the world, starting with the highest value; Given its exchange rate against the US dollar:


  1. Kuwaiti dinar = 3.31 dollars
  2. Bahraini dinar = 2.65 dollars
  3. Omani Rial = $2.60 dollars
  4. Jordanian dinar = 1.41 dollars
  5. British pound = 1.35 dollars
  6. Cayman Islands dollar = 1.20 dollars
  7. Euro = 1.13 dollars
  8. Swiss franc = 1.09 dollars
  9. Canadian dollar = 0.78 dollars

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