Why do three currencies represent 80 of the foreign exchange (FX) market trades?

Three currencies—namely the US dollar (USD), euro (EUR), and Japanese yen (JPY)—dominate approximately 80% of foreign exchange market trades due to their widespread acceptance and stability. The USD serves as the primary reserve currency globally, facilitating international trade and investment. Additionally, the economic size and influence of the Eurozone and Japan contribute to the significance of the EUR and JPY in global transactions. Together, these currencies provide liquidity and reliability, making them the preferred choice for traders and investors.