Which currency is most commonly used in international trade?

The currency most commonly used in international trade is the United States dollar.

The dollar serves as the dominant invoicing, payment, and reserve currency across much of the world economy. Major commodities—including oil and many internationally traded raw materials—are commonly quoted in dollars, even when neither buyer nor seller is based in the United States. Using one widely accepted currency reduces exchange-rate complications and makes cross-border contracts easier to price.

Its modern dominance grew after the United States became an economic and financial power during the 20th century. The Bretton Woods system established in 1944 placed the dollar at the center of the postwar monetary order, with the dollar linked to gold while other currencies were linked to it. The gold convertibility ended in 1971, but the dollar’s deep financial markets, extensive trade use, and perceived liquidity helped preserve its leading role.

The euro, pound sterling, Japanese yen, and Chinese renminbi are also important international currencies. “Most commonly used” does not mean the dollar is the official currency everywhere; many countries use their own currencies while settling selected international transactions in dollars.