Do you know which are the most powerful five currencies in the world
Categories: World markets
Do you know which are the most powerful five currencies in the world
The strength of the currency of every country in the world is judged according to the financial position of that country. The strength of the currency depends on the financial condition of that country. Therefore, the strength of the currency of every country is not the same. Most business in the world is done in US dollars. Every country in the world has its own currency. Like the Indian currency is Rupee, Japan's is Yen, Turkey's is Lira. Similarly, the US currency is the dollar. The currency of the countries of the European Union is the Euro and the strength of the currency of each country is different.
The names of the five most powerful currencies in the world
1. US Dollar: As we all know that most of the business in the world is done in dollars. That's why the US dollar is the most powerful currency in the world. And its share in the total global trade is more than 80 percent. We can say that more than 80 percent of the global trade is done in dollars and its daily trading volume is $22 trillion.
2. Currency of European Union countries Euro: Euro is the world's second largest reserve currency after the dollar. Euro is the common currency of the countries of the European Union. The euro is used by 19 of the 27 EU countries.
3. Japan's currency Yen: Japan's currency Yen is considered to be the third most powerful currency in the world. According to a report by the Bank for International Settlement, the average daily trading volume of the Japanese yen is more than $550 million. Like the dollar, it is also considered very safe.
4. British Pound: The British Pound is considered to be the fourth most powerful currency in the world. It is the oldest currency in the world. Britain used the pound even when it was a member of the European Union. Britain has now left the European Union but the pound is still in use. The British Pound is also known as the Pound Sterling. According to the Bank of International Settlements, the average daily turnover of the pound is more than $325 million.
5. Australian Dollar: Currency of Australia Australian Dollar is considered to be the fifth most powerful currency in the world. Australia is an exporter country of many metals including coal, iron ore. Therefore it is mainly used as a commodity currency. The smaller unit of the Australian dollar is the cent. The value of an Australian currency is around 55 rupees. Thus it is cheaper against the US dollar.
The United States dollar (USD), the Euro (EUR), the Japanese yen (JPY), the British pound sterling (GBP), and the Swiss franc (CHF) were traditionally regarded as the most strong currencies in the world. These currencies were well-known for their consistency, universal acceptance, and application in international trade and banking.