What are the top 10 most traded currencies in the world?

Why does currency ranking matter?

Currency popularity in forex markets is determined by the depth of liquidity on offer. More popular currencies carry tighter bid-ask spreads, faster execution and more transparent price discovery. The stock market trading hours that underpin each economy are also a factor: currencies belonging to major financial centres naturally attract more trading volume because institutional participants concentrate activity there.

For traders, currency choice determines costs directly. A spread of 0.6 pips on EUR/USD versus 30 pips on an exotic pair compounds significantly over hundreds of trades. Most forex traders focus on the top seven majors precisely because liquidity and pricing efficiency are materially better.

The top 10 most traded currencies (BIS 2025)

All figures are from the Bank for International Settlements Triennial Central Bank Survey, April 2025. Currency pairs are counted on both sides of each transaction, so all shares sum to 200%.

Source: BIS Triennial Central Bank Survey, April 2025. Note: because every forex transaction involves two currencies, percentages sum to 200%.

The US dollar: the dominant reserve currency

The US dollar's commanding position reflects the post-World War II Bretton Woods system that established it as the world's reserve currency. Central banks hold roughly 60% of their foreign exchange reserves in dollars, and most global commodities, from crude oil to gold, are priced in USD. The dollar's reserve status creates a self-reinforcing cycle: because most global trade is invoiced in dollars, more financial activity requires dollar conversion, sustaining its dominance.

The US dollar's strength or weakness affects a vast range of assets beyond forex pairs. The largest UK companies by market cap are significantly exposed to dollar movements because most FTSE 100 constituents earn substantial revenues outside the UK. A stronger dollar typically weighs on the dollar-revenue translation of these multinationals when reported in sterling.

The euro and yen: second and third

The euro's 30.5% share reflects the eurozone's size as an economic bloc. Before the euro's 1999 introduction, individual European currencies (German mark, French franc, Italian lira) fragmented liquidity. Consolidation into a single currency concentrated volume significantly, making EUR the natural counterweight to USD dominance. EUR/USD is the world's most traded currency pair, accounting for 21.2% of all forex turnover.

The Japanese yen's 16.8% share reflects Japan's role as the world's third-largest economy and the yen's historical function as a carry trade funding currency. For decades, near-zero Japanese interest rates made it cheap to borrow yen and invest in higher-yielding assets. As the Bank of Japan began normalising rates from 2024 onwards, carry trade dynamics shifted significantly, increasing yen volatility.

The British pound: global significance from a small economy

The British pound punches well above its weight relative to the UK economy's size. London handles over 40% of all global forex turnover, making it the world's largest FX centre. The pound's 12.9% share reflects this institutional concentration rather than UK GDP alone. GBP/USD ('cable') is directly relevant to investor mistakes during market selloffs, because sterling's sensitivity to risk sentiment means it often moves sharply during global equity sell-offs, amplifying currency risk for UK investors with international portfolios.

The renminbi's rise and emerging currencies

The Chinese renminbi's climb to fifth place, up from seventh in the 2019 BIS survey, reflects Beijing's sustained push for yuan internationalisation. USD/CNY trading surged 59% between the 2022 and 2025 surveys. Capital controls still limit CNY's full globalisation, but the direction of travel is clear. The world's largest stock exchanges increasingly include yuan-denominated markets as China's capital markets integrate with global flows.

The New Zealand dollar ranks tenth with a 2.0% share. The NZD is a commodity-linked currency closely tied to agricultural exports and Asia-Pacific trade conditions. It often moves in tandem with the Australian dollar, reflecting the two countries' shared export profiles and geographic proximity.

Currencies of the world FAQs