New Delhi. The US dollar (USD) has always been the dominant currency in the global currency market, but in recent years some other currencies have begun to challenge it. According to April 2025 data from the Bank for International Settlements (BIS), the US dollar tops the ranking of the most used currencies in the world, but the euro, Japanese yen and the rapidly rising Chinese yuan are also strengthening their hold.
1. American Dollar (USD)
The US dollar is still the most dominant “reserve currency” in the global currency market. About 89.2% of global foreign exchange transactions occur in dollars. International trade of crude oil, gold and other commodities is mainly done in this currency. This is why the dollar continues to dominate the foreign exchange reserves of most countries.
2.Euro (EUR)
The euro, the common currency of the 20 countries of the European Union, is the second most traded currency in the world. It accounts for about 28.9% of global foreign exchange transactions. It is considered the most reliable option after the dollar for international payments and trade.
3.Japanese Yen (JPY)
Japan’s yen is one of the most important currencies in Asia. Its share in global foreign exchange transactions is 16.8%. The currency plays an important role in Asian markets and international trade, especially in technology and manufacturing industries.
Chinese Yuan (CNY) – The Emerging Challenge
Although currently the Chinese yuan is less used globally compared to the dollar and euro, it is rapidly gaining its place. According to the latest data from BIS for April 2025 and 2026, the yuan has now become the 5th most used currency in global trade. It has significantly narrowed the gap with the fourth-placed British Pound (GBP).
The share of the Chinese yuan in foreign exchange transactions has increased to 8.8%. 54.3% of China’s cross-border trade is settled in yuan, part of China’s strategy to reduce dependence on the US dollar. However, competing with the dollar is still a long way off.
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