Top Ten Traded Currencies of the World

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Top Ten Traded Currencies of the World
5 The Australian Dollar

The Australian Dollar
This currency has over 7.6 percent share in daily currency transactions. Prior to 1911, private trading banks were issuing currency in Australia.

In 1911, legislation established the Commonwealth Bank of Australia. However, at that time the bank was just like a commercial bank and did not assume the responsibilities of a central bank. Then, the Australian Department of the Treasury was in charge of issuing notes. In 1924, the Commonwealth Bank Act was amended and the Bank was given control over the note issue. From this time until 1945, the Bank gradually evolved its central banking activities.

In 1959, part of the Commonwealth Bank of Australia was renamed as the Reserve Bank of Australia (RBA) to fulfill the functions of a central bank. The commercial banking functions were kept by the Commonwealth Bank of Australia.

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Top Ten Traded Currencies of the World
6 The Swiss Franc


The Swiss Franc
With over 6.4 percent of daily currency transactions, the Swiss franc takes the sixth spot. Until the mid-19th century, cantons (states or provinces) and other entities were producing their own currency. After the first Federal Constitution went into effect in 1848, the Federal Coinage Act was passed in 1850.

Between 1876 and 1901, three agreements were passed to ensure and facilitate the reciprocal conversion of banknotes without any charges. While several attempts were made to establish a central bank, either the motion didn’t pass in the parliament or, if it did, it was rejected by voters.

Finally, the Swiss National Bank was established after the introduction of the Federal Act on the Swiss National Bank in 1905. In 1910, the Swiss National Bank received its monopoly position in issuing money.

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Top Ten Traded Currencies of the World
7 The Canadian Dollar

The Canadian Dollar
As the #7 currency in the world, the Canadian dollar has 5.3 percent share in daily currency transactions in the world. Until the early 19th century, a number of different currencies, British, French, and local currencies, were used in the Canadian provinces. In the years leading up to the Confederation, most of the country was organized as small rural settlements spread over a large area, which made branch banking a practical approach.

During the 18th and early 19th century, the branch banking worked well. Then, bank runs reduced confidence in the system, and the idea that government should issue currency started gaining support. In 1871, the Dominion government passed the Uniform Currency Act.

The establishment of a central bank took a little more. The Great Depression of the early 1930s convinced policy makers to establish a central bank. In March 1935, the Bank of Canada opened its doors as a privately owned institution.

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Top Ten Traded Currencies of the World
8 The Hong Kong Dollar

The Hong Kong Dollar
The Hong Kong dollar’s share in daily transactions is about 2.4 percent. When the British occupied Hong Kong and established a free trading port in 1841, there was no local currency in circulation. Various foreign currencies, including Spanish, Mexican, and other silver dollars; the Indian rupee; and Chinese currencies were used as a medium of exchange.

During the early years of the colony, the Hong Kong government also tried to promote the use of pound sterling. Between 1845 and 1859, three note-issuing banks were introduced. Finally, in 1863 the Hong Kong government declared silver (Hong Kong) dollars to be the legal tender. In 1898, China leased Hong Kong to Britain for 99 years. In 1997, Hong Kong became a Special Administrative Region of the People's Republic of China.

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Top Ten Traded Currencies of the World
9 The Swedish Krona

The Swedish Krona
The Swedish Krona has a 2.2 percent share in daily foreign exchange transactions and has been the currency of Sweden since 1873. But minting of the first Swedish coins goes back to the 10th century.

In the mid-17th century, Stockholms Banco became Sweden’s first bank. While the bank issued notes, it was a private bank under strong state regulation. Even though the bank was closed due to the general public’s loss of confidence at one point, in 1668 it was reestablished by the Swedish parliament as the Bank of the Estates of the Realm.

Even though inflation was increasing during the 18th century and promoting price stability became important, it took some time to establish the central bank. In 1867, the Bank of the Estates of the Realm changed its name to Sveriges Riksbank and became Sweden’s central bank. Later in 1897, Sveriges Riksbank was granted a monopoly on issuing banknotes.

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