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Top 5 currencies of the world

MoneyFrom early times since the trade started, currency had many forms. At first, the barter system was used for traded where commodities likes wheat , sugar, barley etc. were exchanges to fulfill the needs and later came the concept of using precious metals for trading or precious natural resources like diamond, gold, bronze, silver etc. The metals were made into precious coins used as a medium of exchange. A currency nowadays is the currency paper notes which are the bank notes that every country uses as a medium of exchange and this system will remain the same for many years to come. The foreign exchange market (Forex, FX, or currency market) is a global regionalized market for the trading of currencies.To ascertain which currency is the strongest, we need to look at the FOREX Market (Foreign Exchange Market) trading to observe which currency fetches the most interest. As this is the FOREX Market trading, so it’s possible that even 3 currencies fetch the same interest rates. The three foreign exchange markets of the world are American, Asian and European market. The ranking to the currency will be given on the basis of the combined interest rates that each currency fetches in all three markets combined.

Swiss Franc

Swiss franc fetches a foreign trade of 6% and its exchange rate to Dollar is 1=$1.06. It is also known in many regions as Stutz, Franker, Liber and Thune, Swiss Franc. Currently it is the official currency and the medium of exchange for Switzerland and Liechtenstein. It is highly sought after as its value only increases over time as others decline.

British Pound

British Pound fetches a foreign trade of 17% and its exchange rate to Dollar is 1=$1.53. It is commonly known as Pound and is the official currency of 6 other regions apart from the United Kingdom. It is highly sought after because of its high value compared to other currencies. One other thing about this is that the currency remains stable with different economic conditions.

Japanese Yen

Japanese Yenfetches a foreign trade of 20% and its exchange rate to Dollar is 1=$0.01. It is the third most commonly traded currency of the world. The literal meaning of Yen is round which comes from the Japanese language origin. It is distinct for its use in international trading.

The Euro

The Euro fetches a foreign trade of 37% and its exchange rate to Dollar is 1=$1.32. The distinct thing about this currency is that it is the largest currency in circulation and is not only used in Europe but also by 150 million people in Africa. Because of this, it is the largest and most commonly traded currency in the world.

American Dollar

The American Dollar fetches a foreign trade of 90% and its exchange rate to Dollar is 1=$1. Even though there came many economic problems throughout the time and the world faced many economic crises, still the American Dollar is the currency of choice all over the world and many countries use it as their official currency too.

The foreign exchange market (FOREX) trading supports international trade and investments by enabling currency conversion. As of April 2010, according to the Bank for International Settlements, average daily turnover in global foreign exchange markets (FOREX) trading is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume was observed. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.The FOREX trading is an indicator as to how well the currencies are doing in the market in terms of their tradability.

 

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About Emaad Qureshi