One of the most effective ways of ascertaining which are the currencies people want to use the most is by having a look at how they are doing on the FOREX market. Remember that the foreign exchange market is the place where companies, financial institutions and individuals buy and sell currencies and make a profit from what they invest. Nowadays, there are three major exchange markets namely the American, Asian and European. Something special about these markets is that one of them operates in a twenty-four-hours period during days of the week. Let’s have a look at which are the top ten currencies that are most important in the foreign exchange markets.
1- American dollar
Nowadays, the most influential currency in the world is the American dollar. As a matter of fact, every single currency is compared with the American dollar. In terms of quantity, approximately 90% of transactions all over the world are done in American dollars. This proves that the American dollar is very important and that the American economy plays a major role on an international level.
2- The Euro
This currency, which is mainly used in the European Union, serves as a presage of how times change. It is a definite signal to see how the economies of the future will operate. The Euro is the money used in a region by several countries such as Germany, Spain and Italy to name but a few. As a matter of fact, Germany is the most important economy in the foreign exchange market in the European Union. The Euro gets the second place in our list right below the American dollar because it is the second most used currency in the exchange markets as it makes up for 37% of the transactions taking place on a daily basis in the market.
3- Japanese Yen
This currency gets the third place in our list because it is one of the most used currencies in the exchange markets. Nearly 20% of the transactions taking place on a daily basis in the market are done in Yens.
4- British Pound
It is very common to see that the British Pound is compared to the American dollar. The currency makes up for 17% of the transactions taking place on a daily basis in the foreign exchange markets, something that makes it earn the fourth position in our list of most influential currencies in the world.
5- Swiss Franc
Just as you were probably expecting it, the Swiss Franc gets the fifth position in the list of most influential currencies in the foreign exchange market. Approximately 6% of the transactions carried out on a daily basis in the market are done with Swiss Francs.
6- Australian Dollar
The sixth position goes for the Australian Dollar because more than 4% of the transactions carried out in the market are done with Australian Dollars.
7- Canadian Dollar
There’s no doubt that the Canadian dollar had to be in this list because even when it’s not the most used currency at the moment of doing business in the market, it’s still more used than other currencies. More than 4% of the transactions carried out on a daily basis in the foreign exchange market are done in Canadian Dollars.
8- Swedish Krone
This currency is included in the list of top ten currencies everyone wants because it is very used in foreign exchange transactions. It makes up for over 2% of all the transactions that take place in the foreign market every day.
9- Hong Kong Dollar
This currency gets the ninth position in the list of top ten currencies everyone wants to have because it is very used in the foreign market. It makes up for about 2% of the day-to-day negotiations in the foreign exchange market.
10- Norwegian Krone
The Norwegian Krone is the last one to make this list of most important currencies in the world complete and it takes the tenth position because it is very used in business deals in the foreign market. It makes up for nearly 1.5% of the day-to-day business deals in the foreign exchange market.