Covering 40% of the Earth’s surface and with over 40% of the global population, the tropical zone is an absolutely huge region encompassing some of the largest economies in the world! Planning a trip south and wondering about the currencies? Check out our list of the twelve most traded tropical currencies!
You might be surprised or unsurprised to see the US dollar at the top of this list. While the USD is, without doubt, the most traded currency in the world, it only managed to secure its place on this list on account of its 50th (and single tropical) state: Hawaii.
About 40% of Australia’s landmass extends north of the Tropic of Capricorn. As the Australian dollar is among the top 10 most traded currencies in the world, it’s no surprise to see it so high on our list!
China is the world’s second largest economy, and in spite of the fact that it is still considered an emerging market currency, the yuan is the seventh most-held global reserve currency and the eighth most traded currency globally. While most of the country lies north of the Tropic of Cancer, a southern portion of the country can be found within the tropical zone; thus qualifying it for this list.
4. Mexican Peso
With the 11th largest economy in the world in terms of purchasing power parity and the 10th largest population in the world, Mexico is one of the most significant economies in the tropical zone. It comes as no surprise then to see the peso at the number four spot!
The Singaporean economy has a lot going for it: the third highest per-capita GDP in the world in terms of Purchasing Power Parity, a strategically located port and a strong set of exports, just to start. No wonder this South-East Asian city-state’s currency features so strongly.
Hong Kong is one of the world’s leading financial centres and trading hubs. With one of the world’s most resilient economies, Hong Kong is an excellent example of the fact that you don’t need a large population to pack a heavy punch on the stage of foreign exchange.
7. Indian Rupee
With the second largest population in the world and the sixth largest economy by nominal GDP, India is definitely a heavy hitter both in the tropical zone and on the world stage. As the Indian economy continues to grow in the coming years, there’s a good chance that trading in the rupee will only increase!
With the largest economy in Latin America and the fifth largest population in the world, it should come as no surprise that Brazil and the real are on this list. Still, while the country has certainly experienced highs in the past couple of decades, it has also been plagued by economic crises. No doubt these are at least partially responsible for the real not occupying a higher place on this list.
South Africa has one of the most industrialized, as well as the second-largest, economies in Africa. With the Tropic of Capricorn running through the middle of the country’s northern Limpopo province, the rand does indeed qualify as a tropical currency and takes the number nine spot on our list.
Possessing one of the wealthiest economies in Asia, largely driven by industrial manufacturing, Taiwan and the New Taiwan dollar take the number 10 slot on our list. With increased diplomatic isolation on the world stage and other problems, including a low birth rate and ageing population, it will be interesting to see whether Taiwan will be able to maintain the status of its currency in future.
Stay informed. Stay Current.