The currency in circulation is the value of currency or cash (banknotes and coins) that has ever been issued by the country’s monetary authority less the amount that has been removed. Each country’s monetary authority is responsible for ensuring there is sufficient money in circulation to meet the commercial needs of the economy and releases additional notes and coins when there is a demand for them.
Central banks of many countries hold currency of another country in their foreign exchange reserves, which can include banknotes, deposits, bonds, treasury bills and other government securities. The cash component is counted by the issuing central bank as part of its currency in circulation. A significant part of the cash in circulation is used by and held within the black economy.
The published amount of currency in circulation tends to be overstated by an unknown amount because it does not take into account money that has been destroyed, or held by individuals as a form of security, or by coin collectors, domestic or foreign, or which is held in reserve within the banking system, including currency held by foreign central banks as a foreign exchange reserve asset.
Here are the top 10 largest currencies in the world.
Rank | Currency | Total worth in circulation |
1. | US dollar (USD) | $1.98 trillion |
2. | Euro (EUR) | $1.38 trillion |
3. | Chinese yuan (CNY) | $1.15 trillion |
4. | Japanese yen (JPY) | $1 trillion |
5. | Indian rupee (INR) | $425 billion |
6. | Bitcoin (BTC) | $216.50 billion |
7. | Russian ruble (RUB) | $158.10 billion |
8. | UK sterling pound (GBP) | $104.25 billion |
9. | Swiss franc (CHF) | $89.68 billion |
10. | South Korean won (KRW) | $86.40 billion |
