The USD is recognized as the world’s primary reserve currency, and it is used in international trade and finance. The stability and strength of the US economy, as well as the dominance of American companies in global markets, contribute to the widespread use of the USD. The Federal Reserve (Fed) issues the USdollar which is the country’s official currency. It contributes to an averagevolume of US$2.9 trillion per day, making it the most traded currency in theworld. The UnitedStates has the largest economy in the world and serves as a global tradepowerhouse. Central and commercial banks hold the US dollar as the primary‘reserve currency’ for global transactions and investments.

For traders, these currencies stand out with their deep liquidity and stability, offering lower risk. There are several key reasons why the US dollar is the most traded currency worldwide. First, the US possesses the largest economy in the world, accounting for around 26% of the total world GDP. It enjoys a robust and stable economic system, coupled with good institutions and laws. The dollar is rated to be reliable as an investment vehicle and refuge in times of economic crisis. It is also the global reserve currency, which banks and financial institutions hold across the globe.

The Ringgit was introduced in 1967 to replace the Malaya and British Borneo dollar and has since become a key symbol of Malaysia’s financial identity. Iconic cities like Dubai and Abu Dhabi attract millions of visitors and significant foreign investments, keeping the Dirham steady. The Aruban Florin (AWG) is the official currency of Aruba, a small Caribbean island and constituent country of the Kingdom of the Netherlands. The Swiss Franc is known for its stability and safety and is often seen as a «haven» currency.

Known for its stability and high value, the Bahraini dinar is among the strongest currencies in the world, with «BHD» as its symbol. The currency is highly regarded as one of the most expensive and best currencies globally. The Kuwaiti dinar’s stability is supported by its backing by a diverse basket of foreign currencies, rather than being solely pegged to the US dollar.

The KRW is known for its stability and the strength of the South Korean economy. South Korea is a major exporter of electronics and automobiles, which further increases the use of the South Korean Won in international trade. The Swiss franc is the official legal tender of Switzerland and its tiny neighbor Liechtenstein, and the currency is seen as a safe haven due to Switzerland’s political stability.

What is the most traded currency in the world?

Estimated toaccount for a daily average volume of US$166 billion, it is the fifth mostpopular reserve currency. Similar to Australia, Canada is abundant in natural resources andmainly exports commodities. Therefore, the prices of these products can play asignificant role to evaluate the value of the Canadian dollar.

It’s a popular destination for expats, especially those looking to work in Kuwait’s strong oil and financial sectors. The US dollar makes up a significant part of the global transactions in the SWIFT payment system. Currencies like the Japanese yen take 5.09%, while the Chinese yuan, which is looking to uproot the US dollar’s global dominance stands at 2.8%. The data indicates that the Chinese yuan has a herculean task to take on the USD as its usage is minimal. Despite spearheading the de-dollarization agenda, the Chinese yuan is yet to become the most accepted currency.

Top 10 most traded currencies in the world

• Many islands also rely on financial aid and investment from larger nations.
• The Jordanian dinar entered circulation in 1950 and is pegged to the dollar.
• Higher interest rates attract foreign investors looking for the best returns on their investments, which increases demand for the currency and thereby its value.
• This is determined by the government through its central bank, and is set against another major global currency (such as USD or EUR, for example).
• The US Dollar dominates global trade and finance, while the Euro is widely used across Europe and in international transactions.

If you have trading experience, you can easily handle and trade this currency. The current Chinese renminbi in use was introduced in 1948; an invention which replaced the nationalist-issued yuan as the tender of China. The currency is partially pegged with the four currencies used by the International Monetary Fund as value units.

What is the most stable global currency?

Before you decide to trade in one of the strongest currencies in the world, you should consider using the educational resources we offer like NAGA Academy or a demo trading account. The strength of a currency is determined by the amount of goods and services that one unit of it can purchase, as well as the amount of foreign currency it can be exchanged for. Identifying the strongest and most expensive currency in the world requires a thorough analysis of various national and international factors. Several currencies are stronger than the USD in terms of exchange rate value, including the Kuwaiti Dinar (KWD), Bahraini Dinar (BHD), and Omani Rial (OMR).

The Japanese Yen is also highly traded due to Japan’s significant role in global trade. Like the British Pound, the FKP is a strong currency, benefiting from the UK’s stable economy and long-standing financial strength. The Falkland Islands issue their own coins and banknotes, but British Pounds are also widely accepted on the islands.

• It’s important to remember that this «strength» is different from global influence.
• Delve into the top 10 strongest currencies in the world as of September 2025, and discover the factors that impact currency strength.
• Local currencies are facing the heat after Trump reclaimed the White House as the US dollar is strengthening.
• Several currencies are stronger than the USD in terms of exchange rate value, including the Kuwaiti Dinar (KWD), Bahraini Dinar (BHD), and Omani Rial (OMR).

List of World’s Top 10 Most Traded Currencies-

The Euro comes at a distant second at 12.83% indicating that the dollar’s dominance is here to stay. The other leading currencies are in single digits and stand no chance in challenging the US dollar. Increasingly significant in global trade, accounting for about 4-7% of transactions. The second most traded currency, representing approximately 30% of daily trading volume. Therefore, the euro’s strength and economic health have asubstantial effect on the value of trailing stop ea mt4 Swiss franc. Here, weshare the top ten most traded currencies, which account for nearly 90% of alltrades.

United States Dollar (USD)

The Swedish Krona is the official currency of Sweden and is the ninth most widely used currency in the world. The SEK is known for its stability and the strength of the Swedish economy. Sweden is a major player in global trade and finance, which contributes to the widespread use of the Swedish Krona in international transactions.

Lower liquidity can lead to wider bid-ask spreads, and a higher transaction cost. Slippage can lead to difficulty entering and exiting trades at desired prices. A lack of information can make it harder for traders to make informed decisions also, leaving them open to risk of sudden price swings and larger losses.

Its high value is primarily due to Kuwait’s vast oil reserves, which generate significant revenue. The peso has a history dating back to the Spanish dollar and has undergone various transformations over the centuries. It is one of the most traded currencies in the world, reflecting Mexico’s significant role in international trade. The Fijian Dollar (FJD) is the official currency of Fiji, an island nation in the South Pacific. The currency is free-floating, with exchange rates fluctuating based on market conditions. Canada is one of the largest exporters of oil, and the strength of its dollar often correlates with global oil prices.

Why is the US dollar the most traded currency?

The platform is powered by its native token, SOL, which is integral to its operations. The Cayman Islands dollar (KYD) is the official currency of the Cayman Islands, a British Overseas Territory in the Caribbean. Simply put, a currency is deemed «strong» if its value surpasses that of another nation’s currency. The term «Currency Strength» refers to the robustness or weakness of a currency at any given moment. Traditional currencies are likely to coexist with digital currencies, such as cryptocurrencies and Central Bank Digital Currencies (CBDCs), as technology and financial systems advance.

As a result, it usually increases when there isfinancial instability around the world. The U.S. is the world’s largest economy by GDP, and the dollar is easily the most-traded currency globally. And it’s widely circulated, with people in the U.S. sending tens of billions of dollars abroad to relatives and friends each year. The Venezuelan Bolívar and the Iranian Rial are considered among the weakest currencies globally.

(tie) Swiss Franc (CHF)

China is the world’s largest exporter and the second-largest economy, which has led to an increase in the use of the Chinese Yuan in international transactions. The Canadian Dollar is the official currency of Canada and is the sixth most widely used currency in the world. The CAD is known for its stability and the strength of the Canadian economy. Canada is a major exporter of commodities, such as oil and natural gas, which further increases the use of the Canadian Dollar in international trade.