One More - Fun Fact Regarding the Popularity of the Yen { Currency }

The most popular currency in the Forex market is money pair USD/CAD; this is followed closely by the USD/JPY. 

The CAD/USD is considered to be the strongest currency pair on the planet. Additionally, the CAD/CAD currency pair is considered the most effective currency pair. 

As we'll see below, the most powerful currency pairs do actually constitute a large part of the total daily trading volume.

Popular Currency

Popular Currency

Traders make the most money when they're trading the most effective currency pairs. Why? Because these are the monies that have most impact on global trade. 

For instance, the CAD/CHF has become the top currency pair most influenced by the Swiss franc's recent rise. 

Because CHF is so popular with international traders, its strength has helped it gain ground against the USD.

Japanese Yen effect 

However, 1 currency that has little effect on commerce is the Japanese Yen. This has had a slight impact on the exchange rates of Japan and the rest of Asia. 

The CHF/JPY is less important for most traders than the CAD/USD or the CAD/CAD. However, a strong Japanese Yen could cause difficulties for exporters to obtain goods in the region. 

This is because most Asian countries don't accept the Japanese Yen as payment for their exports.

Also read - What is banknotes & it's origination 

Most widely used currency in the world 

The most important thing to note about the Japanese Yen is that it is the most widely used currency in the world, accounting for about two-thirds of all currency exchanges. 

This means that the Japanese yen has had the greatest effect on the economies of most countries that use it as a money. 

In actuality, most if not all of these countries rely chiefly on Japanese Yen exports to keep on expanding their economies.

Why is the Japanese Yen so Popular?

So, another question then becomes"Why is the Japanese Yen so Popular?" There are several reasons. 

The yen is often more affordable than the US dollar, which makes it more affordable to buy items in other countries. 

Another reason is that the Yen is a stronger currency, which means that exporting goods to other nations can have a considerable boost in the value of your merchandise. 

In the end, while other countries use the CAD/CAD and the EUR/GBP as their major pairs; the Japanese dollar is commonly used as a trading currency. 

This means that the Japanese Yen is often used as a means of hedging against the loss of the value of their dollar.

Also read - Top secret tips to trade in share market 

Special Tax rule for using Yen : 

One more fun fact about this popular traded currency in the world is that the government of Japan issues a special tax for men and women that use the yen. 

Yen bank reserved

This tax is known as the"Yen Bank Reserve" and has been used by the government of Japan as an effective method of keeping their currency stable. 

The reason why they have issued this tax is to maintain the interest rates from rising too high. Interest rates tend to be negatively correlated with market movements. 

If the interest rates rise, so does the yen and when that happens, so does the cost of doing business in Japan.

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