Some memorable facts about the Most Traded Currencies of The World
As per the turnover and liquidity of the currency traded, following are the top 5 currencies of the world:
- US Dollar
- Japanese Yen
- British Pound
- Swiss franc
- The US dollar is the most dominant currency unit today as all currencies are measured using the US dollar as the standard.
- About 90 per cent of transactions worldwide involve the US dollar.
- US dollar also is the world’s foremost reserve currency.
- This process of using one country currency in a different economy is called ‘dollarization’.
- Some examples of Dollarization are British Virgin Islands, East Timor, Ecuador, El Salvador, Marshall Islands, Federated States of Micronesia, Palau, Panama, Pitcairn Islands, and Turks and Caicos Islands.
- The euro is the official currency of 16 of the 27 member states of the European Union which are collectively called Eurozone.
- The Eurozone includes Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
- Eurozone is the world’s second largest economy till 2008.
- Japanese Yen is the third largest heavily traded currency of the world.
- Yen means ’round object’ in Japanese.
- The official name of British Pound is Pound Sterling.
- Swiss franc is the currency and legal tender of Switzerland and Liechtenstein as also in the Italian exclave Campione d’Italia.
- This is the only version of the franc still issued in Europe.
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