Our world is nothing short of diversity. For starters, you have different cultures, each of which have their own interesting qualities. The way a country governs their people, as well as how businesses operate, is also pretty distinctive. This is what makes the planet so fascinating to look at.
When it comes to business, however, currencies are the name of the game. Don’t think that there is one singular type of currency that dominates our mainstream consciousness. In fact, there are several other popular currencies, each having their own unique history and purpose. Economic strength, in addition to how well it is traded, can make a currency very popular.
Even though the world’s most populous nations have a strong currency, they aren’t the only ones. You’d be surprised as to how many smaller nations possess an enviable form of money. Learn about the seven most popular currencies in the world in more intricate detail:
1. American Dollar Currency
The American dollar is easily the most popular currency in the world. This currency is, for all intents and purposes, the most traded currency on the planet. Its value is almost without equal, and is instantly recognizable due to its exposure. It also has several, enviable qualities, such as flexibility.
The U.S. dollar can typically be found in a currency pair with other major currencies. It also acts as our world’s reserve currency, and is widely circulated in all major banking institutions. Its global acceptance, followed by its recognition, makes it an admirable currency all around.
2. Euro Currency
Following closely behind the American dollar is the euro. Depending on the exchange rate at a given time, the euro may actually surpass the USD, in terms of value. However, it remains a prevalent force in worldwide trade. Interestingly enough, it is a fairly young currency as well.
Most European countries wanted a standard form of currency since the 1960’s. This would come to pass in 1999, making it one of the youngest currencies available. It’s prevalence within global trade, in addition to its renowned stability, makes it a very healthy currency to use. Although political issues may have put it into question, its relevance can’t be denied.
3. Canadian Dollar Currency
Many typically recognize the American dollar as the standard bearer for currency. While this may be the case globally, its counterpart in the Canadian dollar shouldn’t be ignored. The CAD, also known as the loonie, is one of the world’s most popular currencies. It has similar characteristics to its American cousin, along with notable differences as well.
For starters, it is incredibly practical to use when trading various commodities. Exports, such as precious metals, are best moved in accordance with the Canadian dollar. Other products, like crude oil, are transported along with a strong CAD. It can be incredibly profitable to do currency exchange with the Canadian dollar when the respective markets align!
4. British Pound Currency
The euro is often considered to be the mainstay in European currencies. However, it isn’t the only popular currency to use. The United Kingdom has their own type of currency, which comes in the form of the pound. The nation did not adopt the universal currency used by most European nations, as it wanted its own form of money.
As a result, the pound has become a recognizable form of nationalized currency. Adding on to this fact is its popularity, which comes in the form of its strength. The British pound sterling is noted to be quite stabilized, when used for trading. This separates it from its adjacent peers, which can often fluctuate in competency.
5. Japanese Yen Currency
If you visit Asia, you’ll be amazed by how distinct the different types of available currencies are. In terms of outright popularity, Japan may have the most recognizable form of money. The yen is the most traded of Asian currencies currently, which also helps on the international stage.
Moreover, it is heavily used when buying and selling foreign types of currencies. Investors measure the yen against the health of Japan’s economy, before proceeding with a trade. If everything checks out, there is usually a lot of profit to be made!
6. Swiss Franc Currency
Switzerland is often considered to be a very neutral country. This same sentiment can be applied to its own type of currency, in the franc. Generally speaking, it does not come with the same risks that other currencies may possess. Whereas trading influences may affect their stability, the franc is recognized as safe within a respective market.
7. Australia & New Zealand Currency
Stability is often what makes a type of currency very popular. If that is the case, look no further than the AUD and NZD in Oceania’s most developed countries. Interested traders and investors will find that this currency has a very healthy economic outlook. That is why they are considered as practical to use, when trading valuable commodities.
