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The most important paper currencies in the world

The most important paper currencies in the world

The most important currencies in the world in order, what are they? And why is it so important? What are the banks issuing it? Learn about the most important currency in the world. 

Paper currencies are the means of commercial exchange between countries, and they are the ones with which goods are evaluated and priced, and the value and importance of countries’ currencies differ in terms of strength, importance and price, and in this article we discuss the most important currencies in the world in order of circulation, and we learn what is the most important currency of them.


Why do you need coins?

Currencies vary and differ from each other in terms of value, importance, and volume of circulation, and there is a group of currencies that are the most important currencies in the world, and the need for currencies lies for several reasons, which are:

  • The thing on the basis of which the value of commodities and merchandise is estimated.
  • It is also the counterpart of these goods and merchandise.
  • The means of buying and selling between individuals.
  • It is also the most important means of trade exchange between different countries.
  • Likewise, it is the thing through which a person meets his needs of food, drink, and all other needs.
  • It is also an expression of the strength of the country's economy, and its economic size among countries.

We are talking here about the most important paper currencies in the world, and the list does not include encrypted digital currencies such as Bitcoin . We also talk about the most important and not the most expensive. For example, the Kuwaiti dinar is the most expensive currency in the world, but it is not the most important and is not one of the most important currencies.

most important currency
Why do you need coins?

The most important currencies in the world in order

The most important currency in the world
The most important currencies in the world in order

In the following, we discuss the most important currencies in the world in order, starting with the most important, as follows:

The US dollar (USD) is the most important currency

The US dollar is the official currency of the United States of America, and it is issued by the US Federal Reserve Bank, and it is the most important currency in the world. Here is some information about the US dollar:

  • The number one most traded currency in the world.
  • The average daily turnover of USD is around 2.9 trillion USD.
  • It is also estimated to make up approximately 63% of the world's currency reserves by volume.
  • The value of the dollar is mainly affected by the US economic performance and the demand for basic commodities.
  • Its value can also be affected by fluctuations in the economic performance of other countries that use the dollar either officially or as an actual currency. These countries include Ecuador, Panama and El Salvador.

Reasons for the popularity of the US dollar

There are several reasons for the popularity of the US dollar, and its being the most important currency in the world, which are:

  • The fact that America is the largest economy in the world, and a strong engine in international trade.
  • It is also due to the fact that the US dollar is the main reserve currency in the world, which is held by central and commercial banks for the purposes of international transactions and investment.
  • And also because many commodities are priced in dollars, including gold, oil, and copper.

Euro (EUR)

The euro is the official currency of the European Union countries, and the second most traded currency in the world. Here is some information about the euro:

  • The average daily turnover of the euro is approximately 1.1 trillion US dollars.
  • The euro currency is issued by the European Central Bank.
  • The euro's popularity is due primarily to the size and economic influence of the region in which it is used, the eurozone.
  • The eurozone currently includes 19 of the 28 countries within the European Union.
  • It is also the world's second largest reserve currency, estimated to make up nearly 20% of global reserves by volume.
  • The value of the euro is greatly affected by political and economic developments within the European Union.
  • Also events that could have an impact on the EUR include ECB meeting announcements, GDP releases, employment data and national elections.

The Japanese Yen (JPY) is one of the most important currencies

The Japanese yen is the official currency of Japan, and the third most traded currency in the world. Here is some information about it:

  • The average daily trading volume of the Japanese yen is approximately 554 billion US dollars.
  • The third largest reserve currency in the world, it is estimated to constitute about 4.9% of the world's currency reserves.
  • It is issued by the Bank of Japan.
  • The value of the yen depends to a large extent on the strength of Japan's economy.
  • The value of the yen often increases in line with the demand for Japanese exports.
  • Events that could have an impact on the Japanese yen are the BoJ meeting announcement, GDP data, industrial production index, Tankan survey, and unemployment figures.
  • The strength of the Chinese renminbi could also have an effect; Because China is a major competitor in manufactured goods.
  • A weaker renminbi could also make China's exports more internationally competitive, reducing demand for Japanese products, and thus for the yen.
  • Also, the cost of oil can play an important role in determining the value of the yen, because Japan is a major importer of oil and high prices can greatly affect its economy.

British pound (GBP)

The pound sterling is the official currency of the United Kingdom (Britain) and its dependent territories, and it is one of the most important currencies in the world, and the following information about it:

  • It is the fourth most traded currency in the world, with an average daily volume of approximately $422 billion.
  • It is also the world's fourth largest reserve currency, estimated to account for 4.5% of the world's total currency.
  • The value of the British pound depends largely on the UK's economic performance, with inflation data, BoE monetary policies, GDP and employment reports likely to have an impact.
  • In recent years, its value has also been affected by the UK's changing relationship with Europe.
  • Britain's relationship with the European Union, and especially its future trade relationship, is likely to influence the pound in the coming years.

Australian dollar (AUD)

The Australian dollar is the official currency of the Australian Commonwealth, and it comes in fifth place in the list of the most important currencies in the world, and it is characterized by the following:

  • The average daily trading volume of the Australian dollar is about 223 billion US dollars.
  • It is also the sixth reserve currency around the world, estimated to represent 1.8% of the global currency.
  • The value of the Australian dollar is strongly influenced by commodity prices and terms of trade with countries.
  • Additionally, any difference between the RBA's interest rates and those of other central banks can have an impact, as money is more likely to flow to countries with higher interest rates, and away from countries with lower interest rates.

Canadian dollar (CAD)

The Canadian dollar is the official currency of Canada, and it ranks sixth in the list of the most important currencies in the world, and it is characterized by the following:

  • The average daily trading volume of Canadian dollars is about 166 billion USD.
  • It is also the fifth reserve currency, accounting for 2.02% of global reserves by value.
  • Issued by the Bank of Canada.
  • Like Australia, Canada is rich in natural resources and a major exporter of commodities
  • The prices of Canada's natural resources, as well as the prices of its commodities, can be a decisive factor in determining the value of the Canadian dollar.
  • The Canadian economy, and the value of the Canadian dollar, are particularly sensitive to changes in the economic performance of the United States and the value of the US dollar.

The Swiss Franc (CHF) is one of the most important currencies

The Swiss franc is the official currency of Switzerland, and here is some information about it:

  • It is the seventh most traded currency in the world.
  • The average daily turnover of Swiss francs is about 164 billion USD.
  • It is also the eighth most reserve currency, with 0.18% of global reserves by value.
  • Issued by the Swiss National Bank.
  • The country's reputation for financial services and banking secrecy, relatively sound monetary policies, and low debt levels have made the Swiss franc a "safe haven" currency.
  • The Swiss Franc tends to appreciate in times of global economic uncertainty as money flows into Switzerland.
  • Its value is also heavily influenced by the strength of the euro and the economic performance of the countries within the eurozone.

Chinese Renminbi (CNH)

The Chinese renminbi or the yuan is the official currency of the People's Republic of China, and it comes eighth in the list of the most important currencies in the world in order, and the following is information about it:

  • The average daily trading volume is about 142 billion yuan.
  • Seventh held reserve currency, estimated to represent 1.23% of global reserve currency .
  • It is issued by the People's Bank of China.
  • For many years, the renminbi was pegged to the US dollar, however, the People's Bank of China adjusted its monetary policy to allow the yuan to float, making it a free currency.
  • China has benefited from the weakness of the renminbi against the dollar, making its exports more competitive over the past few decades and enabling it to maintain a trade surplus with many other countries.

Hong Kong dollar (HKD)

The Hong Kong dollar is the official currency of Hong Kong, and this is the most important information about it:

  • The ninth most traded currency in the world.
  • The average daily turnover of Hong Kong dollars is about 117 billion US dollars.
  • It is also not a major reserve currency.
  • It is issued by the Hong Kong Monetary Authority in HK$10 notes.
  • All other denominations are issued by three approved banks, namely the Hong Kong and Shanghai Banking Corporation, Standard Chartered Bank and Bank of China.

New Zealand Dollar (NZD)

The New Zealand dollar comes last in the list of the 10 most important currencies in the world, and the following is the most important information about it:

  • It is the official currency of New Zealand.
  • It is also the tenth most traded worldwide.
  • The average daily turnover of the New Zealand dollar is about 68 billion US dollars.
  • It is also not a major reserve currency.
  • It is issued by the Reserve Bank of New Zealand.
  • The value of the New Zealand dollar is highly dependent on New Zealand's trading relationships, the value of the country's imports and exports, and the strength of the currencies of the country's trading partners.
  • The monetary policies of the Reserve Bank of New Zealand can also have an impact on the value of the New Zealand dollar.

This was a list of the most important paper currencies in the world, in order according to circulation around the world, as we note that the strength of the currency is related to the economic strength of the country, and the goods and services it produces that other countries need.

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