SANTO DOMINGO – In a world with nearly 180 recognized currencies, not all carry the same weight. Some transcend borders, drive international trade, and become a benchmark for governments, businesses, and even travelers. Beyond their face value, these currencies tell stories of economic power, stability, and global reach.
According to data from the company Wise, as well as foreign exchange market analysis published by IG Group, these are five of the most used currencies in the world and the reasons behind their prominence.
1. US Dollar (USD)
The dollar is not just a currency, it's a global standard. Since its origins in the 18th century, influenced by the Spanish piece of eight, it has evolved into the most widely used currency in international transactions.
Its dominance is no accident. It represents the largest volume of daily transactions in the forex market, and is also the world's primary reserve currency. This means that central banks around the globe hold it as economic backing.
It is also the benchmark for the price of raw materials such as oil or gold, which reinforces its influence on the global economy.
2. Euro (EUR)
The euro was born as an ambitious project: to economically unify Europe. Today it is the official currency of many countries in the eurozone and the second most widely used currency in the world.
Its strength lies in the collective economic weight of the countries that use it. According to Wise, its creation made it possible to eliminate internal trade barriers and facilitate transactions between European nations.
Furthermore, it is the second most important reserve currency, demonstrating international confidence in its stability.
3. Japanese Yen (JPY)
The yen is one of Asia's most important currencies and plays a key role in international trade. Its origins date back to the 19th century, inspired by Western models to modernize the Japanese economy.
It is one of the most traded currencies in the world, largely thanks to the strength of Japan's manufacturing sector. Automobiles, technology, and machinery make its demand closely tied to global trade.
Interestingly, in Japan large figures are not expressed in thousands, but in tens of thousands, reflecting a monetary structure different from the Western one.
4. British pound (GBP)
Considered one of the oldest currencies still in circulation, the pound sterling is a symbol of stability and economic heritage. Its origins date back to the Middle Ages, when it was equivalent to the weight of one pound of silver.
Despite political and economic changes, such as the United Kingdom's exit from the European Union, it remains one of the most traded currencies globally.
IG data indicates that it continues to be an important reserve currency, backed by the strength of the British financial system.
5. Swiss franc (CHF)
The Swiss franc isn't always the most visible currency, but it is one of the most reliable. It's known as a "safe haven" currency, meaning investors tend to turn to it during times of economic crisis.
Wise points out that its stability stems from sound monetary policies and the reputation of the Swiss financial system. Therefore, although its volume of use is lower than other currencies, its strategic importance is enormous.
Beyond the top 5
The foreign exchange market is the largest in the world, with a daily volume exceeding $6.6 trillion, according to IG. Currencies such as the Australian dollar, the Canadian dollar, and the Chinese yuan also stand out in this market, continuing to gain ground in international trade.
Recommended readings:
