Most Popular Currencies

Asking which currencies are the most popular is essentially asking which countries are most popular - with a couple of exceptions to that rule. The foreign exchange market is not just for currency conversions for holiday makers but is actually a financial market much like the stock exchanges.



Anyone who has previously had to purchase a foreign currency for a trip abroad will tell you that the currency rates differ from day-to-day so keeping up-to-date and using a currency calculator will allow you to stay ahead of the curve and get the most for your money. The currencies are displayed using the three letters that indicate the countries they represent, for example converting pounds to euros would be GBP/EUR where the Great British Pound is the base currency as this is the one you want to change. This base currency, also sometimes referred to as the domestic currency or primary currency, is always a single amount of the particular currency for example £1, $1 etc and is rarely actually displayed as a number as it is expected that as the number does not change regardless of currency, people will be aware of it without the actual number. The latter currency is referred to as the quote currency or occasionally the counter currency and is how much of that currency you can purchase for 1 unit of the base currency.



The four most popular currencies traded both as a way of generating profit and also amongst holiday makers are:



EUR/USD - Euro vs. U.S. Dollar

GBP/USD - British Pound vs. U.S. Dollar

USD/JPY - U.S. Dollar vs. Japanese Yen

USD/CHF - U.S. Dollar vs. Swiss Franc



How much each of these would actually be worth will depend on the currency value at the time which can be worked out using a currency calculator. These currency calculators will show you how much the currency is worth and how much you would get for your money if you were to purchase another currency. For example, you could use a currency calculator to find out how many United States Dollars you would get if you wanted to convert £500 Great British Pounds.



Noticeably, the most popular currencies listed above all feature the US Dollar or another one of the big world "superpowers", with the exception being the Swiss Franc. The reason behind this is that whilst as a country they are not perceived as being a major power and are famous for their neutral nature, they are one of the major financial powers in the world. As a financial hotspot they hold billions in investments so are responsible for a lot of currency coming and going from the small country.