What are the top ten currencies in the world?
1. Dollar (one of the five largest currencies in the world)
Payment share: In the first quarter of 22, the international payment market share of USD was 4.81%, 41.48% and 44.1% respectively; Compared with 42.22% in December 219. The US dollar has always ranked first in the world's common currency. Even if the COVID-19 epidemic in 22 leads to the global economic recession, compared with other currencies, the US dollar is still a hard currency and has remained strong for many years. At the same time, increasing the holdings of US dollars has become the first choice for all countries. During the epidemic in 22, Argentina in South America, Pakistan in Asia, Turkey in Europe and other countries experienced a "dollar shortage" because they could not grab dollars.
international status: the us dollar is the legal tender of the United States, El Salvador, Panama, Ecuador, east timor, Marshall islands, Micronesia (federated States of), Kiribati and Palau. Dollar banknotes in circulation are all versions of banknotes issued since 1929.
appeared in 1792 after the adoption of the American mint law. At present, the issuance of US dollars is controlled by the Federal Reserve System in the United States. Since 1913, the United States has established a federal reserve system and issued federal reserve bonds. More than 99% of the notes in circulation are Federal Reserve notes.
the us dollar is the us currency issued by the us congress and handled by the us federal reserve bank. Its currency symbol is "$". Including us dollars and us dollars. At present, there are seven denominations of banknotes in circulation in the market, including 1 yuan, 5 yuan, 2 yuan, 1 yuan, 5 yuan, 2 yuan and 1 yuan. Coins come in six denominations: 1 dollar, 5 cents, 25 cents, 1 cents, 5 cents and 1 cent.
Due to its great influence in the world, after World War II, the US dollar was widely used as a reserve currency in countries outside the United States, and eventually became an international currency. It has a great influence on the dollar currency market and even the international gold market, so many countries in the world use the dollar as the main trading currency.
two. Euro (one of the five major currencies in the world)
Payment share: Euro is one of the five major currencies in the world. In the first quarter of 22, the international payment market share was 33.58%, 32.61% and 3.84% respectively; It was 31.69% in December 219. Euro is the common currency of EU member countries, and also the currency of six non-EU countries (regions) such as Monaco, San Marino and Vatican. As the world currency, the euro not only makes the European single market more perfect, but also facilitates the free trade between the euro zone countries, and is also an important part of the EU integration process.
international status: the euro is the currency of 19 EU countries. The 19 member countries of the Euro are: Germany, France, Italy, Netherlands, Belgium, Luxembourg, Ireland, Spain, Portugal, Austria, Finland, Lithuania, Latvia, Estonia, Slovakia, Slovenia, Greece, Malta and Cyprus.
as early as January 1st, 1999, the EU countries that adopted the euro implemented the single currency bill. In July 22, the euro became the only legal tender in the euro zone. The euro is managed by the European Central Bank (ECB) and the european system of central banks (ESCB), which consists of the central banks of the countries in the euro zone. As mentioned above, the euro is also the currency of six non-EU countries (regions), namely Monaco, San Marino, Vatican, Andorra, Montenegro and Kosovo. The first four pocket countries use the euro according to the agreement with the EU, while the last two countries (regions) use the euro unilaterally.
On June 2, 221, the European Central Bank said that creating digital euro can make it easier to pay or save, thus enhancing the international status of the euro. Although this may bring risks, if digital currency is not introduced, the financial system and monetary autonomy will be threatened.
The European Commission has set the goal of expanding the use of the euro outside the euro zone, but this effort has been stagnant for many years, and will be slightly reduced due to the COVID-19 epidemic in 22. The European Commission hopes to reverse this trend.
It is worth mentioning that in 22, the proportion of the euro in global foreign exchange reserves is slightly lower than 22%, far lower than 59% of the US dollar. The European Central Bank has not formally decided whether to introduce the digital euro, and it is expected that it will not be introduced for four or five years. Christine Legarde, President of the European Central Bank, said earlier that if it can be realized, it will take at least four years to introduce the digital euro.
the father of the euro: Robert A. robert mundell, a professor at Columbia university, chairman of the world brand laboratory, winner of the 1999 nobel prize in economics, and founder of the theory of optimal currency area.
Robert Mundell was born in October 1932 in Ontario, Canada. He is an economics professor at Columbia University and a blog post professor at the Chinese University of Hong Kong in China.
Professor Mundell has been awarded honorary professors and honorary doctorates by more than 5 universities, and has served as a consultant to many international institutions and organizations, including the United Nations and the International Monetary Fund.
, World Bank, Council of Europe, federal reserve system, US Treasury, etc. According to China News Service, robert mundell, the winner of the 1999 Nobel Prize in Economics and the "father of the euro", died of illness at his Italian home on April 4, 221, at the age of 88.
III. Pound (one of the five largest currencies in the world)
Payment share: In the first quarter of 22, the international payment market share was 7.7%, 6.81% and 6.41% respectively; It was 6.96% in December 219. Although the pound is one of the five major international currencies, the twists and turns in the Brexit process in recent years have undoubtedly shaken the confidence of the international community in the pound and endangered its position as a major international reserve currency. In particular, many financial institutions such as HSBC and UBS have previously released reports that Brexit will lead to the depreciation of the pound. BlackRock, the world's largest asset management company, even said that there may be a "pound crisis" when Britain leaves the EU.
international status: the pound is the name of the national currency and monetary unit in Britain. Sterling is mainly issued by the Bank of England, but there are also other bank issuers. The most commonly used symbol for the pound is. The ISO 4217 currency code obtained by the International Organization for Standardization is GBP (Great Britain Pound). In addition to Britain, the currencies of British overseas territories are also denominated in pounds, and the exchange rate with pounds is fixed at 1:1.
As Britain is the earliest industrialized country in the world and occupies a dominant position in the international financial industry, the pound was once the most widely used currency for pricing and settlement in international settlement business. However, after World War I and World War II, Britain's economic status has been declining, but due to historical reasons, Britain's financial industry is very developed, so the pound still occupies a very high position in the settlement of foreign exchange transactions. The pound is printed with contributing figures and royalty. Due to historical factors, Britain's monetary law is not uniform and extremely complicated.
For example, in England and Wales, bank notes of England are legal tender with unlimited legal compensation, while local governments such as the Channel Islands and the Isle of Man also print paper money equivalent to bank notes of England, which is also legal tender of the local area. However, there is no legal tender in the laws of Scotland and Northern Ireland, so the banknotes of the two places are actually exchange certificates for British coins.
It is worth mentioning that even in England, where legal tender is recognized, the so-called "legal tender" means that when the debtor deposits in full in these currencies to the court, the creditor may not apply for the debtor's debt, but there is no restriction on the currency of daily transactions, because it is considered as freedom of contract.
Because of the national symbolic significance of the pound, the idea of replacing the pound with the euro has been disputed by some British public departments. The Scottish Conservative Party once claimed that the adoption of the euro meant the end of local characteristic banknotes, because the European Central Bank did not allow member countries or lower-level governments to design banknotes. The Scottish Nationalist Party does not agree to adopt a single European currency, because it believes that an independent Scotland should have its own characteristic currency, and its party policy includes entering the single currency system. Sterling can be bought and sold in foreign exchange markets all over the world against other currencies, and its value fluctuates relative to other currencies. Historically, the pound has been the most valuable basic foreign exchange variety.
iv. Japanese yen (one of the five largest currencies in the world)
Payment share: In the first quarter of 22, the international payment market share was 3.32%, 3.42% and 3.98% respectively; It was 3.46% in December 219. In the 197s, the Bretton Woods system collapsed, and in the 198s, the Japanese government began to support the internationalization of the yen to deal with the depreciation of the yen against the dollar caused by the high deficit and high interest rate policy of the United States. After the stock market turmoil in 1989, the yen appreciated sharply. The United States and Japan have always supported the role of the yen as an international currency, and the yen has rapidly internationalized. Today, the Japanese yen is one of the five major currencies in the world.
Japanese yen, whose paper money is called Japanese bank notes, is the legal tender of Japan, and it is often used as the reserve currency after the US dollar and the Euro.
Japanese yen is the name of Japan's monetary unit, which was founded on May 1, 1871. In 1897, Japan established the gold standard system, and the gold content was set at .75g. In May 1953, it was announced that the gold content was .246853g. On March 31, 1988, the gold standard system was completely abolished.
there are four kinds of notes in Japanese yen, namely, 1, 2, 5 and 1 yen, and there are six denominations of coins, namely, 1, 5, 1, 5, 1 and 5 yen.
on April 9, 219, taro aso, the finance minister of the Japanese government, officially announced that he would change the banknote pattern in the first half of 224 and introduce new banknotes of 1, yen, 5, yen and 1, yen.
international status: why can the Japanese yen stand out among many currencies and become the so-called "strongest safe haven currency"? The Japanese currency is relatively stable. Especially as a developed country, Japan has a reasonable economic structure, a mature economy and a complete financial system. On the whole, Japan's strong economic strength provides a foundation for the stability of the yen's value, and more importantly, Japan has foreign exchange reserves second only to China.
The Japanese yen has always been a freely circulating currency in the world, and there won't be too many restrictions on its circulation. Because only the currency can circulate freely can attract investment, in fact, the property of free circulation has cleared the way for the yen to become a safe-haven asset.
It is worth mentioning that the interest rate of the Japanese yen is so low that there is almost no room for its decline. Japan's low interest rate makes the yen the currency with the lowest financing cost in the world. Therefore, when there is an investment opportunity outside Japan, investors with high credit and excellent vision can easily get a huge amount of cheap yen assets from Japan. In addition, the yen is a freely convertible currency, so it can be easily converted into other currencies, and then the funds can be invested in their optimistic projects.
In fact, as long as the interest rate of a currency is low enough and the liquidity is high enough, it can often become the financing currency of carry trade, which is the so-called "safe haven currency". Some currencies have relatively high liquidity, such as the US dollar, while others have relatively low interest rate, such as the Swiss franc, while the Japanese yen just meets the two necessary conditions of high liquidity and low interest rate, so it has become the strongest safe haven currency in the world.
v. RMB (one of the five largest currencies in the world)
Payment share: In the first quarter of 22, the international payment market share was 1.65%, 2.11% and 1.85% respectively; It was 1.94% in December 219. As early as October 1, 216, RMB joined the SDR currency basket and became the third largest base currency in the world. RMB also became the international reserve currency for the first time, ranking among the "five international currencies". At present, more than 1,9 financial institutions around the world have used RMB to pay with Chinese mainland and China. The internationalization of RMB is of great strategic significance to banks and financial institutions.
international status: on November 3th, 215, China officially joined SDR. Up to now, RMB has become the fifth largest payment currency in the world. The so-called international payment currency refers to the currency that can be used not only at home but also outside the country. There are many kinds of currencies in the world, more than 1 kinds, but less than 1 kinds can become international payment currencies. Thus, if a country does not have certain economic strength, comprehensive national strength and global influence, it is very difficult for it to become a common currency in the world. It is worth mentioning that RMB is the only currency in developing China countries that has become an international payment currency.
according to the data released by SWIFT before, China ranks fifth in the proportion of international payment currency, and the Japanese yen ranks ahead of China. however, from the analysis of previous data, the difference between the payment proportion of RMB and Japanese yen is getting smaller and smaller.
According to the data, by March of 221, the US dollar accounted for 39.43% of the payment currency, ranking first in the world. Although the US dollar still ranked first, it still declined year-on-year. The second place is the euro, accounting for about 35.77% of the total payment, which is not very different from the US dollar.
The pound ranks third in the international payment currency, accounting for about 6.3%, which is obviously different from the dollar and the euro. Ranked fourth and fifth are Japanese yen and RMB, accounting for 3.49% and 2.49% respectively.
According to the current international payment ratio, it is not easy for the pound, the yen and the RMB to surpass the euro and the US dollar in a short time. However, the ratio of Japanese yen to RMB is only 1%, so it is highly probable that China will surpass Japanese yen in the future. Because China's comprehensive economic strength far exceeds Japan's, China's GDP in 22 is almost three times that of Japan, and its trade volume is also about three times that of Japan. Although the share of international payment of RMB is lower than that of Japan, it is undoubtedly proved from a large number of data that the development potential of RMB in the future is very great. I believe that with the increasing influence of China in the future, the proportion of RMB in the international payment currency will naturally increase.
VI. Canadian dollar
Payment share: In the first quarter of 22, the international payment market share was 1.84%, 1.73% and 1.84% respectively; It was 1.98% in December 219. The Canadian dollar, the world currency, can be said to be the best performing major currency in the world in 219. The exchange rate against the US dollar rose by 5% in 219, and the foreign exchange fluctuation in this year fell to a historical low. The reason is that the rebound in commodity prices helped boost the Canadian dollar exchange rate, and the Canadian central bank also played an important role, because it kept the loan interest rate stable.
national status: the abbreviation symbol C$ of Canadian dollar. It is the official currency of Canada. There are 5 denominations, 1 denominations, 2 denominations, 5 denominations and 1 yuan denominations of Canadian banknotes. 1 yuan, 2 yuan and coins of 5, 1, 25 and 5 cents.
the Bank of Canada/ Banque du Canada was founded in 1934 and belongs to Canada.