The history of mankind is a story of money, which, as it does not tritely sounds, have ruled the world for several millennia. Modern currency systems often have only a virtual mapping (on electronic bank accounts) or in the form of paper bills that are bought in one or another part of the world. However, apparent ephemeralism is no more than an illusion. Money still regularly fulfills its main role - are equivalent to quite real material values, services, goods and capital. It is worth noting that, despite the fact that individual currencies, as, however, the countries of their walking, have their own life deadlines, over the past 100-150 years in the world, a single financial system has gradually, with its unconditional leaders and outsiders. What currencies are the most expensive and stable in the world?
Kuwaiti dinar.
The currency of this microscopic Asian state has been considered the most expensive in the world for over 50 years. And I must say, quite well deserved, because Kuwait is one of the richest oil and gas producing states. Kuwaiti dinar appeared on April 1, 1961, replacing the previous currency of the region - Persian Rupe. According to the data provided by international currency trading features, for one dinar today gives more than three US dollars. Despite the steadily standing position of its currency, in 2007 the government of Kuwait decided to completely fall from a constantly weakening dollar quotations, replacing the dollar quotation of the so-called currency basket.
Bahrainsky and Omansky dinar.
As in the case of a neighbor, these small kingdoms may not worry about inflation and devaluation of their own currencies. Their guarantor more than reliable - the colossal reserves of energy resources, which in the most modest counting will be enough for another 50-70 years of continuous mining. Dinar Bahrain and Oman were released in 1965 to replace the depreciated Indian rupee, which had a walk in Arabia in parallel with British pounds and the coins of the Habsburg Empire. For today, one Bahrain or Omansky dinar can be exchanged by $ 2.5.
Pound sterling.
National currency of the United Kingdom of Great Britain and Northern Ireland. The history of the British pounds goes its roots in the early Middle Ages. It is believed that the name of the pound sterling occurred from the weight measure, namely, it was that a pound of pure silver used in exchange calculations. Paper money from the Anglo-Saxons appeared relatively recently - May 10, 1811, before this was metallic coins of different nominal. Despite membership in the European Union, Britain is not going to abandon its national currency. Despite the fact that the United Kingdom by the middle of the last twentieth century gradually passed leadership positions in the international arena of their former US metropolis, the pound sterling remains one of the most expensive and stable currencies in the world. For 100 US dollars today you will help approximately 64.83 pounds.
Latvian lat.
The currency unit of Independent Latvia, which went in circulation from March 5, 1993 to January 14, 2014 (before the state entry into the eurozone). At the beginning of the 20th century, Lat was considered the most expensive currency in Europe, according to financial quotations of 2013, its cost exceeded the British pound sterling at 11 Russian rubles! Since 2005, the LAT has been included in the European mechanism for maintaining exchange rates and was further tied exclusively to the euro.
Euro
The official currency of the European Union, uniting 27 countries. In the non-cash payment of the euro appeared in 1999, the first bills entered into circulation only after three years - in 2002. It is noteworthy that out of 27 participants of this economic and political European project, only 17 participants in the union relationship completely replaced their national currencies. Many countries are in no hurry to get rid of their own currencies in connection with the fear of fully losing economic freedom and cultural identity. However, in the near future, a gradual entrance to the eurozone and other participants of the Union is expected. According to the data provided by the International Monetary Fund, in 2006, the euro possessed the highest total value of cash, thereby ahead of its main competitor - the American dollar. The euro's ratio to the dollar for 2015 is 1: 0.89.
Currency is a commodity expressed in foreign money (cash, non-cash). For the money that we are holding daily every day, you can buy a lot: food, clothing, tickets, services.
For a simple ordinary man, happiness in money is not, but they bring stability. So for the state: the more expensive and more stable currency, the more positive solutions for the economic situation. Let's talk about the impact on the cost of money and present the rating of the most expensive currencies.
Factors affecting the world value of currencies
Economists separate the concept of "currency" from "Money", since the last term can be applied to the goods, if they are allowed to pay.
Mix three types of currencies:
- foreign;
- collective;
- national.
Collective currency is the one that is used simultaneously by several states as national. The best modern example is the euro.
Many citizens follow the financial news from magazines, newspapers, currency courses. The cost of goods imported into Russia increases if foreign currencies grow relative to the ruble. Today everyone knows about it. But what affects the increase in the price?
The first system of currency relations was still in antiquity. They are based on:
- issuance of national payments;
- convertibility;
- currency control systems;
- gold reserve size;
- rules of international calculations.
The main reason for changing the course is a decline or an increase in demand. Additional impact has an offer. These complex mechanisms work under the influence of the following factors:
- activity or passivity of the balance of payments in the country (passive prompts to give debts in foreign currency, selling national);
- inflation growth (increase in money supply);
- speculation in foreign exchange markets;
- demand for the payment facility in international markets.
Not a small role in changing the course plays political stability, economic development of the country. We present the top 10 most expensive currencies in relation to the dollar and other monetary units.
Rating of the most expensive currencies
To find out how stability affects the price of the payment element, we learn what currency is the most expensive.
10th place - Singapore dollar
Singapore began to produce his own money in 1967, they were tied to the pound of the UK. The country, being one of the poorest and dependent in Southeast Asia, today occupies the first lines in the rating of economic freedom. The welfare of citizens is growing, they allow themselves dear cars, real estate.
An interesting fact: can replace the Brunei dollar at a ratio of 1 to 1. This agreement acts unchanged dozens of years.
The inflationary indicator is 1.2%. Bank of Russia daily establishes the Singapore currency rate.
9th place - Brunese dollar
Banknote in 500 Brunese dollars is equivalent to 21,000 rubles
The official name is ringgit, but this word is almost not used, and the currency icon is often replaced with $ symbol. Being the main partner of Singapore, Brunei tied his currency to the Singapore dollar. To date, citizens have the right to exchange 1: 1, as well as dozens of years ago.
Ringgit Brunei is the most expensive currency of Southeast Asia. It is noteworthy that both Singapore and Brunei are tiny states. The country has a developed economy based on the extraction and processing of expensive natural fossils.
8th place - Australian dollar
Australian dollars are printed on thin plastic
Despite the remoteness of Australia from major continents, the dollar is among the strong currencies of the world. They are not printed on paper, but on plastic, which makes them expensive and recognizable. Modern banknotes have the highest degree of protection, convex signs for the blind.
Stably occupies one of the lines of dozens of the most traded monetary units of the global economy. Australia is a stable and rich state. By purchasing power parity, citizens exceed the inhabitants of Germany and the United Kingdom. The basic principle of stability is freedom of doing business.
7th place - US dollar
Banknote at $ 10,000 is valid to this day, is considered a payment facility.
Is a monetary unit of states:
- Salvador;
- Zimbabwe;
- Marshall Islands.
Additional feature - reserve. According to the largest economic agencies, the proportion of dollar operations between the banks of the world is 41%. Today, the backup currency is not provided. The role of the Central Bank is fulfilled by the Federal Reserve System (Fed). It does not work on the basis of the laws of the country, but as an independent agency. Under its roof, it unites twelve federal banks. The Fed issues loans to national banks of other countries under 1% (the last rate of the rates occurred in March 2017).
The largest bills have a nominal value of 100 dollars. Every day 35 million banknotes are manufactured in the country.
6th place - Swiss franc
Time flows, the world is experiencing war, revolution, and Franks of Switzerland are still highly appreciated. They are in circulation on the territory of Switzerland and Liechtenstein.
Switzerland adhered to the last gold parity. After the global crisis of 1932 (great depression) occurred, Frank fell by 30%. After the end of World War II, he was tied to American, but this measure was canceled in 1973. Since then, the American currency rate fell in relation to Swiss more than 4 times.
Used as a payment means of banks less often than the Russian ruble, but the stability and stability of the economy allows the use of Franc as an expensive backup currency. The inflation rate is so insignificant that it is accepted for zero.
5th place - Euro
ECB stopped the issue of banknotes with a face value of 500 euros, but they will remain a payment tool
EU countries decided to introduce a single currency unit in 1999. Since then, it has shown stability, the inflationary indicator is 2%. As a national is in circulation in 28 countries, only 19 of them are included in the Eurozone.
The European Union is the territory of a stable earnings of citizens, economic growth. The introduction of a single payment means made it possible to reduce the risks associated with convertibility. Due to the fact that the share of operations with the euro between the banks of the world exceeds 30%, it is one of the reserve. However, the euro is not the most expensive currency in Europe.
4th place - British pound
British pound - the strongest currency of Europe
Despite the widespread myth, the British pound sterling is not the most expensive monetary unity in the world. He holds the palm of the championship in Europe. Used as national banknotes in the entire kingdom and its maritime territories.
Stability of the country's economy and low inflation (the report was last published in the spring of 2018, it amounted to 1.2%) allows to maintain significance in the system of international calculations.
The pound sterling was the main reserve currency for several centuries. His popularity dropped sharply after World War II, when the era of the dollar came. Currency pair Pound sterling - the euro exchanges in the ratio of 1: 1.11.
3rd place - Oman Rial
The course of Rial Oman is not free. It is tied to American currency and varies depending on changes in world markets.
Oman is a rich state on the shores of the Arabian Sea. It exports expensive oil, gas, metals. The population is small, lives stably, receives benefits. Currently, the tourist sector is paying attention to the economy in Oman. Rich Oman can take a loan for the construction of the hotel under a small percentage.
2nd place - Bahrainsky Dinar
In the late 50s of the last century, Indian rupee went to the Persian Gulf countries. She kept his position for a long time. Bahrain released his own money only in 1965.
At the heart of the monarchum policy of most monarchies of the East is a binding to the US dollar, which makes money stable. For them, there is no concept of "the most expensive course". If the US currency is growing, the dinar seeks up.
Interesting fact: Jordanian dinar is actually tied to the dollar, but to the unit of the International Monetary Fund, special borrowing rights. These money goes in circulation only inside the IMF, banknotes are not printed.
Bahrain actively develops offshore sector, since oil reserves come to an end.
1st place - Kuwaiti Dinar
Banknote in 1 Kuwaiti Dinar is approximately $ 3.3 US dollars
The most expensive currency in the world for 2020 - Dinar of the state of Kuwait. The average course to the ruble: 1: 220. He is 3 times stronger than the American dollar.
Kuwait for a long time led the war with Iraq, then releasing new banknotes, then announcing them invalid. Currently, in terms of GDP, the country is located on 7th place in the world. Cause of rapid recovery - oil exports. Kuwait took the US dollar as a binding, but after his two devaluations refused this policy.
Dinar is tied to monetary units of a multicurrency basket. It includes monetary units of Kuwait partner states. Financial policy allows you to maintain dinar leadership.
10. Singapore dollar
1 SGD \u003d 0.74 USD *
After the independence of independence in 1965, its currency, the Singapore dollar, existed as a currency, tied first to the British pound, then to the US dollar. Nevertheless, after 20 years, the authorities released a Singapore dollar in free swimming. Its cost took off after Singapore became the intellectual and technological center of the East. Thanks to the stable growth of Singapore GDP, the currency of this country is today very strong.
9. Brunese dollar
1 BND \u003d 0.74 USD
Brunei is a small country in Southeast Asia. Located between Malaysia and the South China Sea, it has a very high per capita GDP. Despite the slight drop in value (the peak was made five years ago at the level of 1 Bnd \u003d 0.83 USD), the Brunese dollar remains quite strong currency and is practically not subject to inflationary processes.
8. Australian dollar
1 AUD \u003d 0.75 USD
The Australian dollar, like the Canadian dollar, refers to freely convertible raw materials currencies, since its course depends greatly on prices in commodity markets. The reason is that Australia is essentially an export country. It sells gold, iron ore, oil, gas, coal and various agricultural products in foreign markets. 2015 was not the most successful for the natural resources sector in Australia, which is why the cost of the Australian dollar fell. But it is still included in the top 10 most expensive currencies in the world.
7. US dollar
To everyone known from the young age, the US dollar stably preserves its status of the Main World Currency. In 1973, after the conclusion of the transaction between Saudi Arabia and the United States, such a concept appeared as "petrodollara". And in 1975, the organization of oil exporters accepted the US dollar as the only currency for the purchase of oil. This gave rise to a strong demand for dollars. There are many opinions about the fact that another wave of the crisis in the coming years launches the US financial system, and therefore the dollar will collapse. However, experts are confident that the probability of this is very small.
6. Swiss Frank
1 CHF \u003d 1,04 USD
Switzerland's banking system is one of the oldest and largest in the world. This made the Swiss national currency, Swiss franc, safe refuge for international capital. Switzerland Central Bank has introduced a tough francation course binding to the euro after the country entry into the currency union. However, last year, Franc was released into free swimming, which literally for the next 10 minutes caused an unprecedented growth of franc to all currencies of the world to 20-30%.
5. Euro
1 EUR \u003d 1,13 USD
The well-known currency of the eurozone, despite many different economic and political problems, remains one of the most expensive currencies on the planet. Euro is still more expensive than the US dollar.
4. British pound
1 GBP \u003d 1.47 USD
The pound sterling, or the British pound, became a strong currency even during the colonial era. Since then, it remains one of the main settlement units for savings accounts. In mid-2006, Pound became the third most widespread reserve currency, receiving a surge in popularity in recent years.
3. Oman Rial
1 OMR \u003d 2,60 USD
The Oman economy is based on oil exports. Also in the country develops gas production, metallurgical industry and tourist business. The average monthly salary in Oman is $ 4,100, per capita GDP in 2015 amounted to $ 15 232. There is no unemployment in Oman and there are no homeless. Considering all the facts, it is not surprising that the country's currency, Oman Rial, enters the top three most expensive currencies of the world.
2. Bahrainsky Dinar
1 BHD \u003d 2.65 USD
The resistance of the Bahrainsky dinar depends on the relations of the country with Saudi Arabia and the oil market. But he has another trump card. The American naval base is located in Bahrain, which is crucial for the influence of the United States in the region.
1. Kuwaitsky dinar
1 kwd \u003d 3.32 USD
So, the most expensive currency in the world is Kuwaiti dinar. At the same time, this currency holds its leadership for more than a dozen years. The thing is that Kuwait uses the fruits of a rapidly developing economy based on oil trade.
Each country has its own national monetary unit in circulation. The list of currencies of the countries of the world is very wide. However, it can be divided into several basic groups. So, for example, there exists a currency of European countries, African, countries of Northern and South America, as well as Asian countries, Australia and Oceania. In addition, the world's currency list can be divided into two categories: the most expensive and cheapest monetary units.
What affects the cost of the currency
One of the most important indicators affecting the cost of the currency is the presence of a strong and well-developed economy. It should cause confidence in partners and investors who will be invested in state securities. In addition, great impact has minerals and their exports of the country.
If you carefully examine the rating list of the currency countries of the world, then you can see that the monetary signs of the Arab Peninsula are the most strong and expensive. But despite this, this currency is little interested in the rest of the countries. This is due to the fact that it directly depends on oil. And this natural resource can dry out at a certain time. Accordingly, the income of the exporting country will also fall.
Why does the price of currency fall
Vietnam currency is Dong. The name of this monetary unit is translated as "copper" or "bronze". But, despite this name, the banknotes themselves are made of special water repellent paper. This makes them more wear-resistant.
The third place of this list of currencies of the world should be placed. Good is a monetary unit used in circulation in the Democratic Republic of Sao Tome and Principe. The economy of this state is kept on the tourist business and growing coffee and cocoa.
On the fourth position there is a familiar to many Belarusian ruble. Often it is called the "bunny".
The fifth position of the list of the cheapest currencies of the world occupies Rupee, which is used in Indonesia. On the local dialect, the monetary unit is called "Perak". But her official name was taken from
Freely convertible currencies
Some of the most popular currencies that are accepted for handling around the world are dollar and euros. But despite all its popularity, these monetary units are approximately in the middle of the list of the most expensive bills of the world. At the same time, the euro is slightly ahead of his fellow conversion.
These currencies are reserve for the whole world, thanks to the most stable and developed economy of their countries.
Full list of currency names of the world can be found on the official websites of companies that are engaged in buying / selling, as well as currency exchange.
Only a strong currency can ensure the preservation of deposits, because it is less susceptible to the influence of the economic crisis. Which of the popular currencies deserves confidence?
Millions of investors are peering every day in currency charts to determine what is the most reliable and stable currency in the world. Despite some discrepancies in forecasts of experts, world holdings and bankers, it is easy to see a common trend that swept around the world, and reflected in the actions of professional depositors.
Investments in the foreign exchange market is not only an investment, it first of all the consent to keep savings in the currency of another country, or in the global reserve currency. Where did the expression "strong currency" come from? In front of which factors should she resist to be called strong?
The best currency is the currency of a strong state with a developed economy. It does not matter the area that the country is on the map occupies, but the presence of support and competent management often raise the national currency to the level of global reserve, and exalted it.
Support for the national settlement unit is provided by the gold reserves of the country and the world turnover. Therefore, the country's gold share in the overall foreign exchange reserve, and the GDP indicator defines the reliability of the currency.
The value has what place is the country in the world community, its geopolitical position and other factors that affect the country's rating. The more influence, the stronger the currency on a global scale (not within the boundaries of a separate state).
To answer which currency is it better to invest your cash equivalent, you need to analyze which countries affect the global financial sector and the economy. The assessment of the country under the criteria below will help determine the value of its national settlement unit:
- Mining raw materials;
- Export volume;
- Control over the most important industrial sectors (oil producing, gas, mining, IT-technologies).
Contrary to this information, the position of countries in the rating of the strongest economies of the world does not correspond to the similar list of their currencies. So, strengthening the currency as an investment object depends on all of the above factors in the aggregate.
The most stable currencies
Alexey Ulyukaev, the head of the mayor, was right, making an emphasis on the differences between the stability, the reliability of the currency and its world status. According to his comment, the dollar did not emerge in the top five most stable currencies.
Many consider the US economy unstable, with variable stagnants, some say that the Golden stock of America (the largest in the world) is not so great, and the US public debt is 16 trillion. It is more than 100% of US GDP.
However, the worst analysts are not coming true, which are aligned by the dollar devaluation. About America can be said that it flourishes, but the dollar in 2019 is not the most stable currency in the world. Most of the exchange transactions, as well as import-export operations occurs in dollar prices, because the status of the reserve currency is fixed.It is better to store capital nominated in dollars, not in themselves, but in dollar assets.
The most reliable currency in those countries that send efforts to maintain the course at the same level. There are few such states. This is Norway, Switzerland and Sweden (remind that during the crisis in 2008-2009. Norwegian crown was recognized as the most reliable currency in the world). Not bad has established itself and euros as a young currency that is recognized as a backup.
List of strongest currencies
In order to find out which currency is better to invest your finances, in which of them your savings will be effective, and when it is better to convert earned funds, let's understand what exactly currencies deserve investors' confidence in the world.
Swiss Frank (CHF)
As we have already said, Switzerland leads a wise macroeconomics, which is aimed at maintaining the Frank Course. The foreign exchange fund is 40% reinforced by Franc, and this is the merit of Switzerland. Banking secrecy is the main milestone of his policy.
This means that any depositor (be it a state, a corporation or personality), putting money to the Swiss bank, can be calm that even the interest rate will remain in secret, not to mention all other data.
About 10 years ago, the Swiss bank has disclosed the interest rate of the contribution of one of the American banks, and the stock speculators that have invested in Frank lost their savings in a few minutes.
The National Bank of Switzerland does not allow devaluation and sharp growth of Frank. When the conditions for the natural growth of the Swiss currency were created in 2011 (huge debt obligations were drawn to the European Union into a crisis), the National Bank demonstrated that such a stable currency.
His chapter announced that he would not allow the growth of the franc above the mark than 1.2 euros per Franc. After that, the EU claims subsided, and the franc for about 80 years holds at the top of the list of the most reliable currencies.
Notice to the investor. The inflation rate usually does not exceed 0.5-0.6% per year, in size of the external debt, Switzerland ranks 14th, 1 franc \u003d $ 1.08 (in 2012 it was 1.05). It is better to invest in franc, despite the modest Swiss bond market in 2019.
Euro (EUR)
The economic situation in the eurozone is a solid uncertainty. But with the euro, everything is clear and predictable - the decrease in quotations during the global crisis is not surprising, but their decline before the status of the status of the reserve global currency is not expected.
The European Union has 28 countries, and it is clear that the level of development of each of them will not meet high standards. Especially since many developing countries have entered into the EU, therefore countries are more economically more developed to pull their economies with their efforts. This suggests that the euro rate will slightly decrease.
Read also
How to choose a control paмма account correctly?
Another factor is "soft", according to experts, the credit policy of the European Central Bank. The total debt of the union is 90%, and for the backup currency it is normal. If neither the problem with the rehabilitation of the economy.
Currency and called backup due to a huge debt market. It allows you to vary reserves without affecting its course.
Considering all the factors, you can predict a decrease in the euro to the dollar. This forecast partially came true, because 1 euro \u003d 1.15 dollars (at the beginning of 2019).
Notice to the investor. This is one of the most stable world currencies, now the euro is experiencing difficult times. In this and the benefits of neutral countries - their currency does not respond to crisis phenomena.
Japanese Yen (JPY)
This is what the post-war "economic miracle" led - the national currency of Japan has long been considered one of the most stable and reliable. Such data provides technical and fundamental analysis.
Inflation does not exceed 1.2%, and the denomination was not conducted in Japan once over the past 65 years - these are convincing arguments in order to invest in Ien.
In general, Japan is a quiet harbor for investment, but without a "storm" did not cost. Nuclear catastrophe led the long-playing economy. They say, soon the Japanese banks will begin to allocate significant amounts on the buying of gold to reinforce their national currency and the economy.
Now Japan occupies an 8th place in the world in gold reserves. Bypassing adverse circumstances, Yen in the category of the strongest currencies. To date, 100 yen \u003d 0.89 dollars.
Notice to the investor. In 2012, 1 yen was equal to $ 1.25. The course fell, and this is due to the stagnation of leading global economies. The advanced positions of the Japanese economy were provided with high-tech developments in the area of \u200b\u200bIT, the demand for them decreased slightly. Last year, the yen is recognized as the worst currency.
Norwegian Crown (NOK)
In 2008-2009 Crown surprised the whole world, being recognized by HSBC analysts the most stable currency. As we remember, 2008-2009 - these are the years of the previous economic crisis, which did not affect the crown rate.
The growth rates are slow, but the upstream trend was noticeable. In recent years, the Norwegian currency remained in the top three.
It cannot be said that Krone was always present in the list of the best currencies, because the economy of Norway is focused on oil production. Consequently, the economic sensitivity of the crown remained always - as well as the cost of oil fluctuates. The crown breakthrough became a surprise because it was a weak, non-permanent currency.
Thanks to the exports of gas and oil of impressive volumes, Norway has accumulated a huge reserve fund, which keeps the crown at the highest course towards the dollar - 1 crown \u003d 1.33 dollars. This figure is higher than the euro, franc and yen.
Notice to the investor.If the economic crisis and the fall in oil prices have hooked even the Russian ruble, then these factors passed the Norwegian crown. You can invest. Today it is really strong currency.
Swedish Crown (SEK)
If the economy of other countries is kept in printing new money, the Swedish policy in this issue is aimed at the fundamental conservation of the crown course. This is the main advantage of the National Swedish currency, because timely regulation of financial issues does not give the chances of inflation and devaluation.
