What is the Weakest Currency and Strongest Currencies?
When moving abroad to work or study it is prudent to take into consideration the currency’s strength in the nation into which you are heading. The rate of exchange is a good indicator of the health of the destination’s economy, and it has an important role in the strength of international trading. This article reviews some of the weakest and strongest currencies around the world.
THE STRONGEST CURRENCIES.
The Kuwaiti Dinar
The Kuwaiti dinar is the official currency of an Arab country to the western part of Asia. The Kuwaiti dinar is one of the currencies with the highest values when compared to the US dollar. The nation’s economic success results from its rich oil reserves, which bring the country approximately 75% of its revenue. The exchange rate of the nation is set at a high level, and this measure protects the external value of the currency and it assists in anchoring the value of the nation’s exports. One Kuwaiti dinar exchanges for £2.16 – up from £2.15.
The Bahraini Dinar
The Bahraini dinar is among the most valuable currencies in the world because of a heavy investment in the finance sector and rich oil reserves that make the nation to have a great value for money. The currency was pegged to the USD in 2011, and its value is expected to stay steady. Currently, one Bahraini dinar exchanges for £1.73 – up from £1.65.
The US Dollar
Most transactions in the global exchange market involve the use of the US dollar. The use of the USD results from the fact that America was among the first nations to have a stable banking system, which is centralized since the 1900s. The centralization stopped the banks’ decision to create their own currencies, and the dollar has always been on the rise in value as the economy continues to lead globally. The current rate of exchange is 1 USD for £0.65p – up from £0.62p.
The Jordanian Dinar
The Jordanian dinar is the official currency of the Jordan Kingdom, which is a major exporter of petroleum products. The rich reserves of oil that the kingdom owns are its main source of wealth which keeps the economy and exchange rate of the kingdom stable. The JOD is the sixth strongest currency in the globe. Presently, 1 Jordanian dinar is equal to 1.41 US dollar. The kingdom is the 94th largest export country, which exports fertilizers, cars, wheat, and gold.
The Gibraltar pound is the currency of the Gibraltar territory, which is a territory of the UK. The Gibraltar pound is pegged to the sterling pound, and it was introduced in 1934. It is one of the most valuable currencies, and one Gibraltar pound is equal to 1.3 USD. The territory is ranked 151 in the OEC exporting nations’ rank. The oil and gas exports are the major sources of its stability. However, the nation has a negative trade balance in most cases.
THE WEAKEST CURRENCIES.
The Vietnamese Dong
In spite of its great timber and agricultural resources, the Vietnamese Dong has had a very low value and exchange rate against most major currencies. One Vietnamese Dong is equal to 0.000029 of the sterling pound. This implies that £1 is about 33,000 Dongs. The biggest problem that led to this decline in value can be attributed to the long Vietnam War. Import bans from the war, the destruction of the war, natural disasters, and the world recession are part of the factors that have kept the nation on a low economic tone and slow recovery path. Currently, £1.00 is equal to 34428 Vietnamese Dong down from 33976.
The Somali Shilling
The Somali shilling has been the official currency of the nation of Somali since 1960, but its value has gone down since the 1991 civil war in Somalia. The nation has no stable government and Central Bank of the nation was closed after the long war. These events disrupted the value of the shilling and led to its decline. After the closure of the central bank, other independent parties introduced their own currencies, but right now the nation is trying to establish the bank and help in improving the value of the shilling. The current value of the Somali shilling stands at 980.04 Somali Shillings, which exchange for £1.00.
The disfranchisement of the white Zimbabwean population in a process in which land was taken from the white population was the precursor of the nation’s economic crisis. Due to government policy, land taken from the whites was redistributed among the black population, and the following economic crisis led to a serious hyperinflation that led to a great devaluation of its dollar currency. Inflation in the nation rose to a high of 79.6 billion percent, and this made the nation to stop using the currency. A £1.00 is currently equal to 555.865 up from 579.939.
The New Zealand and Australian Dollar
The New Zealand and Australian dollar have become devalued in the recent past. The decline in the demand for these two currencies can be attributed to waning of the demand of natural resources as economic growth declines in large economic nations such as China and Brazil. The governors of both central banks have been asking for a fiscal policy that would allow the banking institutions to weaken their currencies as commodity prices decline further. This has not yet materialized and the decisions on interest rates are yet to be made.