Top 10 Most Traded Currencies In The World

The US dollar commands 89.2% of global foreign exchange turnover, followed by the euro (28.9%), Japanese yen (16.8%), and British pound (10.2%).

According to the BIS Triennial Survey from April 2025, daily FX trading now averages $9.6 trillion — a 27% jump from $7.5 trillion in 2022. The top 10 currencies have remained stable in ranking, though market share shifts reveal interesting trends about global trade patterns and economic power.

Every currency trade involves two currencies (buying one while selling another), so the total sums to 200%. That’s why you’ll see percentages exceeding 100.

What are the top 10 most traded currencies?

The Bank for International Settlements publishes triennial data capturing over-the-counter FX turnover across spot transactions, outright forwards, FX swaps, currency swaps, and options.

The April 2025 survey confirms the same ten currencies leading global markets — with the dollar maintaining overwhelming dominance as the world's primary vehicle currency.

Source: BIS Triennial Central Bank Survey, April 2025

USD dominance

The dollar appears on one side of nearly nine out of ten FX transactions.

Major pairs such as EUR/USD, USD/JPY, and GBP/USD drive most trading activity, which explains why the U.S. dollar maintains such a commanding lead.

Central banks hold roughly 60% of their reserves in dollars, and most commodities — from crude oil to gold — are priced in USD.

Asian currencies rising

Five of the top ten currencies originate from Asia-Pacific economies.

The Chinese renminbi's climb to fifth position (up from seventh in 2019) reflects Beijing's push for yuan internationalization, though capital controls still limit CNY's full potential as a global reserve currency.

How has currency trading changed since 2022?

The FX market expanded significantly between the 2022 and 2025 BIS surveys, driven primarily by hedging activity amid heightened volatility. Overall turnover grew 27% — from $7.5 trillion to $9.6 trillion daily — yet the top 10 ranking remained identical.

pp = percentage points

Winners and losers

The biggest gainer was the Chinese renminbi, climbing 1.5 percentage points as China's trade surplus expanded and cross-border settlement in yuan increased.

The Swiss franc also rose 1.2 points — investors flocked to this traditional safe-haven during periods of market stress. Hong Kong dollar trading surged as the territory maintained its role as a gateway for mainland Chinese investment flows.

The British pound suffered the steepest decline (−2.7 pp), reflecting UK economic pressures including persistent inflation and post-Brexit trade friction. The euro also retreated 1.7 points amid energy crisis concerns and slower growth across the bloc.

Why does the US dollar dominate global trading?

The dollar's supremacy stems from multiple reinforcing factors that create a self-perpetuating cycle. Network effects mean that using USD reduces transaction costs — when everyone else uses dollars, you benefit from doing the same.

Reserve currency status

Central banks worldwide hold dollars as their primary reserve asset:

• Oil, natural gas, and most commodities trade in dollars
• The Federal Reserve serves as the lender of last resort during crises
• About 60% of global foreign exchange reserves are denominated in USD
• International debt instruments predominantly use the dollar denomination

Vehicle currency role

Even when neither party in a trade uses dollars domestically, they often convert through USD because of superior liquidity.

A Thai exporter selling to a Brazilian importer might settle in dollars rather than converting THB directly to BRL — the dollar acts as an intermediary (hence "vehicle currency").

Financial market depth

US Treasury securities represent the deepest, most liquid bond market globally.

Investors can move billions without significantly affecting prices, which makes the dollar attractive for large-scale transactions and reserve management.

What factors determine a currency's trading volume?

Several interconnected elements influence how frequently a currency changes hands in global markets. Economic fundamentals matter, but market infrastructure and policy choices can amplify or constrain trading activity.

Economic factors

A currency's trading volume correlates with:

• Trade openness (exports plus imports as a share of GDP)
• Interest rate differentials are attracting carry trades
• Inflation stability and central bank credibility
• Current account balances affecting demand
• GDP size and growth trajectory

Market infrastructure

Beyond economics, practical considerations shape currency adoption:

• Time zone coverage for trading hours
• Settlement system reliability and speed
• Regulatory transparency and rule of law
• Capital account openness (can foreigners freely buy/sell?)

China's renminbi illustrates this tension — the world's second-largest economy yet only fifth in FX turnover because capital controls restrict free convertibility. The strongest currencies aren't necessarily the most traded; liquidity depends on accessibility.

How do emerging market currencies compare?

Currencies outside the top 10 collectively account for roughly 16% of FX turnover.

The Indian rupee (INR), Mexican peso (MXN), and South Korean won (KRW) lead this second tier, though none have cracked the top 10 despite significant economic growth.

Growth potential

Several emerging currencies gained share between 2022 and 2025:

• The Indian rupee rose modestly as India's economy expanded
• Mexican peso benefited from nearshoring trends
• Brazilian real attracted commodity-linked flows

However, these gains remain incremental. Breaking into the top 10 requires not just economic scale but also market infrastructure, regulatory frameworks, and — most importantly — trust built over decades.

Safe-haven dynamics

The Swiss franc and Japanese yen occupy unique positions as safe-haven currencies. During market turbulence, investors buy CHF and JPY even when Switzerland and Japan offer low (or negative) interest rates.

The yen's share remained stable despite Japan's prolonged low-rate environment because traders use it as a funding currency for carry trades — borrowing cheap yen to invest in higher-yielding assets elsewhere.

What does this mean for international money transfers?

Currency trading volumes directly impact the costs and speed of cross-border payments. Sending money in heavily traded currency pairs — like CAD to USD or CAD to EUR — typically means tighter spreads and faster settlement. Less liquid corridors involve wider margins because providers face higher hedging costs.

Exchange rate impact

When you exchange currency, the bid-ask spread (difference between buying and selling rates) depends on liquidity:

• Major pairs (EUR/USD, USD/JPY) have spreads under 0.01%
• Minor pairs (CAD/CHF, AUD/SGD) show spreads of 0.1–0.5%
• Exotic pairs (USD/PHP, CAD/INR) can reach 1–3% spreads

For a $10,000 transfer, the spread difference could range from $1 to $300, which is significant for regular remittances.

Timing considerations

The 24-hour FX market means exchange rates fluctuate constantly.

Setting up rate alerts helps lock in favorable rates when your target currency weakens. Currency volatility has increased since 2022, making timing more important than ever for large transfers.

For Canadians sending money abroad, RemitBee offers competitive exchange rates on major corridors, including India, the Philippines, and Pakistan — destinations where understanding currency dynamics can save hundreds on each transfer.

Frequently asked questions

Here are the most commonly asked questions on this topic:

What is the most traded currency pair in the world?

EUR/USD dominates global FX trading, accounting for roughly 23% of all transactions. The pair benefits from deep liquidity in both currencies, overlapping trading hours between European and US sessions, and the economic significance of both regions. USD/JPY ranks second at approximately 14%, followed by GBP/USD at around 10%.

Why is the euro second despite covering multiple countries?

The eurozone's 20 member states share a single currency managed by the European Central Bank, creating a unified monetary bloc rivaling the US in economic output. Before the euro's 1999 introduction, individual European currencies (German mark, French franc, Italian lira) fragmented liquidity. Consolidation into one currency concentrated trading volume, making EUR the natural counterweight to the USD dominance.

How often does the BIS publish currency trading data?

The Bank for International Settlements conducts its Triennial Central Bank Survey every three years, with the most recent data from April 2025. Between surveys, the BIS publishes semiannual statistics with less granular detail. Market participants treat triennial results as the authoritative benchmark for understanding FX market structure.

Are cryptocurrencies included in FX turnover figures?

No. The BIS survey covers traditional fiat currency trading in OTC and exchange-traded markets. Cryptocurrency transactions occur on separate exchanges and decentralized platforms, not captured in official FX statistics. Bitcoin and other digital assets represent a tiny fraction of daily trading volume compared to the $9.6 trillion conventional FX market.

Which currency gained the most share since 2022?

The Chinese renminbi showed the largest increase, climbing 1.5 percentage points from 7.0% to 8.5% of global turnover. Beijing's efforts to internationalize the yuan — including expanded swap lines with trading partners and increased use in Belt and Road transactions — contributed to this growth. The Swiss franc also gained significantly (+1.2 pp) as investors sought safety during volatile periods.

References

1. Bank for International Settlements. (2025). Triennial Central Bank Survey: Foreign exchange turnover in April 2025.
2. Reuters. (2025). Dollar maintains dominance in $9.6 trillion daily FX market — BIS survey.
3. Wikipedia. (2025). Foreign exchange market.