Top 10 Most Dominating Currencies in the World

Currencies are the means by which wealth is stored, protected and exchanged between countries, organizations and individuals. There are few global currencies that have occupied a dominant status in terms of trading business in global scale. Their reputations on world economy with trillions of dollars traded on any given day between millions of parties have made them have firm establishments as a major international currency. Even historical evidence indicates that one currency tends to dominate others as an international medium of exchange and a store of value when an economy emerges as internationally strong. Scroll down to learn more about the top 10 most dominating currencies in the world.

List of Most Dominating Currencies in the World

1. US Dollar

2. Euro

3. Japanese Yen

4. British Pound

5. Swiss Franc

6. Australian Dollar

7. Canadian Dollar

8. Swedish Krona

9. Hong Kong Dollar

10. Norwegian Krone

Top Ten Most Dominating Currencies in the World

Read further to know in details about the top ten most dominating currencies in the world.

1. US Dollar

No.1 Most Dominating Currency in the World - US Dollar

Despite global economic travails, the US Dollar has not ceased to emerge as the most dominating currency in the world and continues to be the prime mover of the world’s financial system. The official currency of the United States of America is the most used legal tender for international transactions. Several countries use it as their official currency, and in many others it is the “de facto” currency. It is also used as the sole currency in two British Overseas Territories, the British Virgin Islands and the Turks and Caicos islands.

2. Euro

No.2 Most Dominating Currency in the World - Euro

The second largest reserve currency as well as the second most traded currency in the world; Euro has the highest combined value of banknotes and coins in circulation in the world with a distribution of more than €915 billion. The official currency of the eurozone, it is used by the Institutions of European Union and more than 175 million people worldwide—including 150 million people in Africa. Despite pressure due to the European sovereign-debt crisis the euro remained stable. Public and private sectors in third countries acquire and use the euro for many purposes, including  trade or as currency reserves.

3. Japanese Yen

No.3 Most Dominating Currency in the World - Japanese Yen

The widespread use of the Japanese Yen in the international financial and monetary system has stated demonstrating its global presence. It is not only used as a reserve currency but is also the third most traded currency in the foreign exchange market with a daily transaction of 20 percent. It is the official currency of Japan which was formally adopted by Japan’s Meiji government in an Act signed on May 10, 1871 and the new currency was introduced in July of that year.

4. British Pound

No.4 Most Dominating Currency in the World - British Pound

The British Pound also known as the pound sterling, acts as a large reserve currency due to its relative value compared to other global currencies. Although the U.K. is an official member of the European Union, it chooses not to adopt the euro as its official currency for a variety of reasons. Due to its high value relative to its peers, the pound is also an important currency benchmark for many nations and acts as a very liquid component in the forex market.

5. Swiss Franc

No.5 Most Dominating Currency in the World - Swiss Franc

Being a currency and legal tender of Switzerland and Liechtenstein, the Swiss Franc undergoes a daily business of 6 percent in the foreign exchange market. The note is considered a safe haven within the forex market, primarily due to the fact that the franc tends to move in a negative correlation to more volatile commodity currencies. The Swiss franc is used as a reserve currency around the world and since Switzerland practices a number of languages, Latin is used for language-neutral inscriptions on the coins.

6. Australian Dollar

No.6 Most Dominating Currency in the World - Australian Dollar

Popular among currency traders, the Australian Dollar is yet another note that holds a position among the top ten most dominating currencies in the world. It is commonly referred to by foreign-exchange traders as the “Aussie” and is the fifth most traded currency in the world, accounting for 7.6 percent of the world’s daily share. On 27 July 2011 the Australian Dollar hit a record high since the floating of the dollar. It traded at a $1.1080 against the US Dollar.

7. Canadian Dollar

No.7 Most Dominating Currency in the World - Canadian Dollar

Also known as loonie, the Canadian Dollar is probably the world’s foremost commodity currency, meaning that it moves in step with the commodities markets, notably crude oil, precious metals and minerals. Traders often trade the Canadian dollar to speculate on the movements of these commodities or as a hedge to their holdings of those underlying contracts. The representative note of Canada can be credited with financial records for 5.3 percent of the world’s daily share.

8. Swedish Krona

No.8 Most Dominating Currency in the World - Swedish Krone

The Swedish economy is one of the world’s most stable economies, thus the Swedish Krona is one of the most dominant currencies in the global trade market. Swedish Krona is the ninth most traded currency in the world market and due to its prominence Sweden has achieved such a high growth rate becoming one of the most economically powerful and secured countries of the world even after the global recession in 2008. It has been the currency of Sweden since 1873 and is locally abbreviated as kr.

9. Hong Kong Dollar

No.9 Most Dominating Currency in the World - Hong Kong Dollar

The Hong Kong Dollar serves as an excellent indicator of trends and movements in the territory’s balance of payments in the import and export business of the nation. The currency is the eighth most traded note as the south administrative coast of China sees foreign trading as an outstanding source of income. Hong Kong Dollar is being controlled by currency board system under which mechanism has been fixed for a bank to be able to issue currency.

10. Norwegian Krone

No.10 Most Dominating Currency in the World - Norwegian Krone

With boom in demand of crude oil in recent years, Norway has come out as one of the strongest economies and its currency, Norwegian Krone is one of the few currencies that have grown stronger against even Euro and US Dollar. The value of currency compared to other currencies varies considerably from one year to another, mainly based on changes in oil prices and interest rates. Following 2009, the NOK has seen strong growth, making the USD worth about 5.8 NOK.

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