There are approximately 182 official currencies worldwide but only a small proportion is traded on the Forex market. Generally speaking, the seven most commonly traded or 'liquid' currencies are those of countries with stable governments, respected central banks and relatively low inflation. Over 95% of all daily Forex transactions involve: the U.S dollar (USD), the Euro (EUR), the British pound (GBP), the Japanese yen (JPY), the Swiss franc (CHF), the New Zealand dollar (NZD), the Australian dollar (AUD) and the Canadian dollar (CAD) The seven most actively traded pairs in the world are the four 'majors': the EUR/USD followed by the USD/JPY, GBP/USD and USD/CHF followed by the three ?commodity? pairs: the AUD/USD, USD/CAD and the NZD/USD. Trading of the major and commodity pairs accounts for more than 95% of all Forex trading.