Since the world economy is changing according to many conditions, the economies and currencies of the countries are also affected positively or negatively. There are many factors such as production, natural wealth and trade among the factors that affect the change in the value of the currencies of the countries. Although some countries are lucky in terms of geography, some countries can increase the value of their currencies thanks to their development.
Not only these, tax is also a factor that affects the value of a country’s currency. Currencies of tax haven countries can be seen among the highest currencies. Currency gains and losses can also be due to political statements within the country. Considering all these variables, we examined the strong currencies. The top 10 most powerful currencies can be listed as follows.
- Kuwaiti Dinar (KWD)
- Bahraini Dinar (BHD)
- Omani Rial (OMR)
- Jordanian Dinar (JOD)
- Pound Sterling (GBP)
- Cayman Islands Dollar (KYD)
- Euro (EUR)
- Swiss Franc (CHF)
- US Dollar (USD)
- Canadian Dollar (CAD)
These top currencies have managed to stay strong in the face of pandemic, war and many other conditions that the world is facing. Although some countries are not very large, they have a very good income thanks to their oil reserves, and this reflects positively on the value of the currencies of those countries. Everyone knows how important oil is for the whole world. The countries that are at the top of the ranking are the countries that have a lot of oil reserves and export the products related to it. such as the Jordanian Dinar; There are also currencies that are among the strongest currencies thanks to production, trade and mining. Countries that provide offshore banking services can also keep their currencies strong.
How to Keep a Currency Strong?
Large countries, growing countries and countries with a healthy economy will always be able to see their currencies among the strongest currencies. Although the natural wealth of the country is seen as a chance, countries that want to see their currency among the highest currencies should use their wealth well. For example, it is often not seen as the right choice for oil-owning countries to grant the operating rights to a different country.
Sometimes unexpected negative things happen all over the world. Covid-19 is one of the best examples of this. Due to the stagnation of international trade around the world, countries experienced export problems. Countries whose production slowed down because they could not import also had problems in their economies. However, countries that used their resources well were able to overcome these negativities with minimum damage. In this way, they were able to preserve the strength of their currency as much as they could.
The currencies of the countries, which are forbidden to export certain products due to international agreements, have gradually lost value, unlike the strong currencies. It is very difficult in today’s economy to remain stable against the world’s most well-known strong currencies such as the US Dollar, the Euro and the Pound. When you read global financial reports, you can see details about top currencies and their reasons.