The most stable currency: an overview of world currencies

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In our difficult time, almost every person thinks about where to invest their money most rationally. However, at the same time, not all people are aware that any contribution is a significant risk, especially when it comes to not quite stable currency. In this article, we will look at what is the most stable currency in the world today, its features, and also review other strong national monetary units of the planet that can also claim leadership in the financial sector in the future.

The situation with the ruble

The Russian currency is far from the best option to imitate other money. And that's all, because if we analyze the trend from the period of the creation of the ruble to its current state, it will become clear: the currency almost constantly shows negative indicators, declining in relation to other money. Literally over the past 20 years, the "wooden" (that is the name among the people of the Russian ruble) has fallen in price against the US dollar by almost 14 times.

Absolute leader

Studying the currencies of the world, it is worth turning yourclose attention to the country called Switzerland. Yes, not every one of us will immediately find this small power on the map, but for many years this country has been confidently holding the palm in its economic and financial stability. In this regard, we can say with full confidence that the most stable currency in the world is the Swiss franc. In many ways, this fact is explained by the wise macroeconomic policy of the state leadership, as well as the presence of banking secrecy, which guarantees confidentiality to an individual, company, corporation.

In 2011, the franc had a real opportunity to rise against the euro due to the economic crisis in the EU, but the head of the Swiss National Bank made a decision that seemed unpopular for many people in the post-Soviet space - not to allow the franc to grow above 1, 2 euros, that is, keep your own currency from strengthening.

Certainly, the fact that the strongest currency in the world does not allow a sharp rise and devaluation of its own is very important from the point of view of investors who can safely invest in francs or keep bank savings using these banknotes without worrying about sharp jumps in the exchange rate in one direction or another.

Miracle from China

Of course, it is impossible to unequivocally state that the most stable currency is the Chinese yuan. Despite its authority, the Asian banknote is still not the undisputed leader. Nevertheless, this monetary unit confidently holdssecond position in the conditional ranking of the strongest national currencies in the world.

The yuan began to gain strength after it lost its peg to the US dollar in 2005. In the past few years, Chinese government leaders have embarked on a controlled devaluation of their own currency in order to increase the country's economic growth. At the same time, in relation to the ruble, the yuan has appreciated by 228% over the past ten years.

Third place

Studying the question of what is the most stable currency in the world, one cannot but pay attention to the Israeli shekel. Many will not understand why it is he, but the thing is that his rate, although floating, is still quite stable. Over the past decades, the shekel has only slightly “dipped” against the US dollar.

Norwegian krone

It was she who was the most stable currency on the planet in 2008-2009, according to HSBC analysts. It should be understood that the Norwegian economy is very dependent on the volume of oil exports, and therefore the krone exchange rate is at risk, because the cost of oil fluctuates. Nevertheless, the state managed to accumulate a colossal reserve fund, which allows maintaining the crown at a high and stable level for quite a long period of time.

Money of the Rising Sun

The post-war "economic miracle" of the Japanese has led to the fact that their yen has been one of the most reliable and stable currencies in the world for many years. At the same time, inflation in the state is within 1.2%, and denomination has not been carried out over the past 65years never. All this suggests that this currency can be trusted.

Japanese yen against the dollar today has a ratio of 100 to 0.89. But this was not always the case. Six years ago, the Japanese yen against the dollar had a rate of 1 to 1.25, however, due to the decline in interest in high-tech products of Asians, their currency has fallen in value.

It is rumored that soon Japanese bankers will begin to actively allocate quite large sums for the purchase of gold in order to strengthen their currency as much as possible. By the way, now Japan is in eighth position in the world in terms of gold reserves, which also cannot but have a positive effect on the position of the yen.

Middle East

At the moment, the Kuwaiti dinar is the most expensive currency in the world. In rubles, you will need to give more than 200 units for one Kuwaiti dinar. This rate can be explained by the huge export of oil from Kuwait to the world market.

The Bahraini dinar is another national currency of the Middle East region, which is distinguished by its overall stability and high cost against the Russian ruble. This situation is due to the impressive oil reserves of this small country.

Such a world currency as the Omani rial can also be remembered in the review of the most powerful monetary units of the planet. The riyal is so strong that the government of Oman is issuing banknotes in denominations of 1/2 and even 1/4.

European Titanium

EU currency - euro - inin principle, not the most stable currency, but still quite strong. Of course, how could it be otherwise, if on the European continent the euro circulates in several dozen countries, among which there are many real economic “heavyweights”. In addition, the euro is the second reserve currency in the world, which covers 22.2% of all savings on the planet, while the US dollar has 62.3%.

Money of Foggy Albion

The British pound is consistently among the leaders in terms of its value on the planet. By the way, the colonies of the Kingdom also issue their own banknotes, which are quoted to British money at a ratio of 1:1, although they have a different appearance. However, native English people are extremely reluctant to accept "other" pounds as payment for goods and services.

American money

The US dollar, due to the fact that it is the main world reserve currency, got the opportunity to "circulate" around the world. Simply put, anyone can pay with this money in almost any country on earth. At the same time, in 2018, the dollar is no longer as good as it was before. Even the Thai currency was able to show a higher rate of its own growth than the US national currency.

Australian currency

The Australian dollar is the currency used by the entire continent. Largely because of this, this money is quite popular in the world, since it covers a very large planetary region. At the same time, Australia is cut off from otherscountries of the world geographically and militarily neutral. Thanks to all this, the national currency of Australia is strong and stable. This dollar is also called a commodity dollar, since it is used to pay for oil, chemical and agricultural products supplied to the world market from this continent, and so on.

I would also like to note that the most reliable world currencies are not only the above money, but also, according to the respected American financial holding JP Morgan, the Singapore dollar. It is on this monetary unit that not only the giant of the US financial sector pays attention, but also the World Bank, which, in turn, again predicts the beginning of a new crisis in the period 2018-2019, repeating at intervals of 10 years. At the same time, the Singapore dollar seems to modern specialists to be one of the most recession-resistant currencies that can withstand and successfully endure all the difficulties and threats of a critical period in the global economy and financing.