Which currency is the most reliable in the world? Which currency is the most stable in the world Stable currencies of the world

Greetings to all people who care about their tomorrow! Earlier, we already talked about how to use Forex to make trading as profitable and convenient as possible. There we looked at which currencies are relevant today, which is useful for any practicing trader to know, because he works here and now, constantly being at the forefront of the market, so he must proceed from the current situation.

But, in connection with this, the question arose - “What should those who prefer not to speculate in currency, but invest in it do?”, thus creating their own financial cushion for the long term. Use the same currencies as in trading? Is not a fact. Trading and investing are things that, although they overlap, are far from identical, and the tools that are used there often differ.

So, in order to fill this gap and give food for thought to practicing investors, we have compiled our hit parade of “currencies of tomorrow”, which, in our subjective opinion, have a bright future. Let's get started.

No dollars, no euros

Unexpected, right? The currencies that I considered to be the best options for opening a trading account are completely unsuitable for long-term investing.

Why? Yes, because both the United States, which is “in debt like silk,” and the EU, the number of whose problems are growing every day, although they are already through the roof, with a 99% probability, will face the highest inflation, accompanied by devaluation of currencies. This will happen, of course, not today, not tomorrow, or even in a month, but in the next few years we should definitely expect an inevitable decline in the American dollar and the single European currency.

A huge, simply gigantic issue of both currencies, when money is printed out of thin air, will bring with it high inflation, with all the ensuing consequences.

So, we forget about the US dollar and the euro for now and move on to currencies that are more promising in this regard, the leading ones of which are three.

The countries whose national currencies will be discussed below demonstrate stable economic growth, and it is present not only on paper and in the news story on the central channel, but also in reality, as confirmed by fundamental analysis tools.

That's it, that's it, I won't torment you anymore. So, currencies.

Chinese Yuan (CNY)

I think you've been waiting for this. Who else but China today has the maximum potential in economic, industrial, social and other terms.

For several years now, the Chinese authorities, who are aware of the prospects for the dollar and the euro, have been investing in their existing assets (factories, mines, natural resources, etc.) not in foreign currency, but in their national currency, the yuan. Which, naturally, has a positive effect on its cost.

And the only reason why the yuan has not yet taken off, entering the world market as the most reliable currency, is that the government and the Central Bank of the Republic of China deliberately restrain its exchange rate, preventing the yuan from growing, and sometimes deliberately lowering the value of the currency in exchange offices, thus preventing him from floating freely on world currency markets.

Why are they doing that? Yes, to increase the attractiveness of domestic goods and services and get more profit from them.

But the international community understands this policy very well and has been putting pressure on the Chinese authorities for several years, forcing them to adjust the exchange rate (revalue the yuan). I don’t know how long this situation will last, but I doubt it will be more than a few years. And the point is not even that China will submit or give up its positions. There are more serious reasons, such as, for example, a decrease in China's dollar reserves. While China is the largest producer of goods in the world, it also consumes a lot. This means they will have to invest yuan abroad.

Experts predict that the yuan will rise against the US dollar by 20-25% within 5 years. Let's see to what extent their forecast comes true, but if the current situation continues, there will be an upward trend - that's for sure.

By the way, you can also trade yuan on Forex. This happens through the USD/CNY asset related to .

Indian Rupee (INR)

Another global giant, if not economically, then certainly in human terms.

Yes, the national currency of India is going through hard times right now. Over the past few years, it has experienced a severe decline against the US dollar, which was due to excessive control of the rupee by the Indian government. Trying to overcome the crisis in the economy and make domestic goods more popular, the Central Bank of India greatly weakened its value on the international market.

Why then do we classify this currency as promising? Yes, because India’s GDP growth greatly exceeds similar indicators in Western countries and in order to avoid inflation, the country’s Central Bank will have to raise interest rates, which will strengthen the rupee.

Now that India has already moved from a closed economy, isolated from the rest of the world, to an import-oriented economy, this issue arises very acutely.

And one of the first currencies to benefit from the fall of the dollar and euro, increasing its artificially low exchange rate, will be the rupee.

The asset for trading on Forex with the rupee is the USD/INR pair.

Well, what do you think will be the third currency?

Canadian dollar (CAD)

I am sure that this is not what most readers were expecting. The Japanese yen or the Norwegian/Swedish krona were more worthy of the bronze award in our hit parade. Currencies of the most stable countries, whose economies are not threatened (in the near future for sure).

But, we decided to highlight CAD, because... Canada has all the data to ensure the brightest prospects for its currency.

This country is rich in natural resources - oil, gold, valuable types of timber and so on. All this is in constant demand on the world stage and there are no prerequisites for a change in the situation yet.

Canada has a strong financial base, reliable banks that are not infected with the preferential lending virus, and the country’s credit rating is AAA and the opening of many branches of Canadian banks in the United States (!) only confirms this.

If the Canadian government does not make any serious mistakes, then the country and its currency are guaranteed a bright future.

On Forex, the asset, with the Canadian dollar and the US dollar - a currency pair, belongs to the category of the main and most liquid, so purchasing this currency will not be a problem.

To summarize, if you are planning to put together an investment basket of currencies, trying to protect your money and focusing on the long term, then including the currencies listed above in it can work to your advantage, with a high degree of probability bringing good profits in the future.

The easiest and most reliable way to purchase them is to open long-term positions on Forex for the specified currency pairs. Just don’t rush to buy everything at once, contrary to your budget and strategy, but don’t put this matter off for a long time, who knows when that very moment of rapid growth in rates will come.

Well, the best broker for investing in Forex is traditionally considered to be a company whose arsenal has all the tools necessary for an investor and trader. That’s all for now regarding currencies for investment, see you next time.

Best regards, Nikita Mikhailov

Almost any currency is subject to change. But there are countries in the world whose money is the most resistant to various kinds of crises and shocks.

Swiss frank.

The franc is the most stable currency in the world. Many investors consider the franc (as well as the Australian dollar and Japanese yen) to be the currencies in which they can invest their money during periods of instability in other currencies. This opinion is confirmed by the heads of Russian banks. Since 2007, the Central Bank of Russia has introduced the franc into the country's gold and foreign exchange reserves.

In order to slightly stop the growth of the franc (it negatively affects local exports), the Swiss National Bank pegged its exchange rate to the euro and this step yielded results, the franc dropped slightly in price.

However, there was one moment in history (20th century) when the franc fell in price by 30%. This happened in 1936. But the Second World War and the crisis of the 70s did not shake the franc and it remained stable.

Japanese yen.

In the Asian market, the Japanese yen is the most stable currency. But even if we look at it on a map of the whole world, the yen does not lose its position and remains among the most stable and resilient.

On the world market, the yen established itself in 1953, and until 1971 its exchange rate was pegged to the dollar. But over several decades, the yen managed to strengthen significantly not only against the dollar, but also against other existing currencies. The yen rose even during earthquakes and tsunamis, and the Bank of Japan had to take measures that could prevent the currency from rising.

Australian dollar.

The Australian economy was not affected by the 2008 crisis; despite the panic in many countries, the position of the Australian dollar not only did not fall, but also strengthened, which led to stable growth of the country's banking system. The unemployment rate in this state is an order of magnitude lower than in Europe or America, and all conditions for business development are present. In addition, 1% of the reserves of the Central Bank of Russia are in this currency.

Canadian dollar.

Despite the fact that the Canadian dollar is not nearly as popular and well-known as its American “brother,” it is one of the most stable currencies due to the calm economic and financial situation in the country. Some countries (including the United States) keep their gold and foreign exchange reserves in Canadian dollars, which already means a lot.

U.S. dollar.

Even despite the steadily increasing foreign debt of the United States, its currency does not lose ground and continues to grow. This happens due to its powerful military potential. Even Russia, which is in second place, cannot lay claim to world domination (due to technological backwardness). And of course, in terms of GDP, the United States is second only to the European Union.

CNY.

This currency is just gaining momentum (despite the huge volume of trade), but in the future it has great prospects of becoming one of the most stable currencies. This is actively facilitated by the stable Chinese economy.

Euro.

The euro is a very young, but no less strong currency. In addition to the fact that it maintains low inflation, every day it becomes a stronger opponent for the American dollar in the “battle” for the right to be considered a world currency.

Norwegian krone.

Today, the Norwegian krone enjoys the reputation of one of the most stable currencies in Europe. Moreover, this glory came to the currency already at the end of the 19th century. Due to the fact that Norway exports gas and oil, it has successfully managed to form a reserve fund, and given the needs of the country, it can safely be called inexhaustible.

In addition, the security of Norwegian krone banknotes is the best in the world; counterfeiting it is an almost impossible task.

Swedish krona

Despite the fact that the Swedish krona is not as confident and stable a currency as the Norwegian krona, it can still safely be considered one of the most stable currencies. Currently, the country uses the euro along with the krone (Sweden is a member of the European Union, but has refused to recognize the euro as its national currency).

Only a strong currency can ensure the safety of deposits, because it is less susceptible to the influence of an economic crisis. Which popular currency is trustworthy?

Millions of investors look at currency charts every day to determine what the most reliable and stable currency in the world is. Despite some discrepancies in the forecasts of experts, world holdings and bankers, it is easy to notice a general trend that has swept across the world and is reflected in the actions of professional investors.

Investing in the foreign exchange market is not only an investment, it is, first of all, an agreement to keep savings in the currency of another country, or in the world reserve currency. Where does the expression “strong currency” come from? What factors must it resist in order to be called strong?

The best currency is the currency of a strong state with a developed economy. The area a country occupies on the map does not matter, but the presence of support and competent management often raises the national currency to the level of the world reserve currency and elevates it.

Support for the national unit of account is provided by the country's gold reserves and global trade turnover. Therefore, the share of a country's gold in the total foreign exchange reserve and the GDP indicator determine the reliability of the currency.

What matters is the place a given country occupies in the world community, its geopolitical position and other factors that influence the country’s rating. The more influence, the stronger the currency on a global scale (not within the borders of an individual state).

To answer which currency is better to invest your cash equivalent in, you need to analyze which countries influence the global financial sector and economy. Evaluating a country using the following criteria will help determine the value of its national unit of account:

Extraction of raw materials;
Export volume;
Control over the most important industrial sectors (oil, gas, mining, IT technologies).

Contrary to this information, the position of countries in the ranking of the world's strongest economies does not correspond to a similar list of their currencies. This means that the strengthening of a currency as an investment object depends on all of the above factors in combination.

The most stable currencies

Alexey Ulyukaev, head of the Ministry of Economic Development, was right in emphasizing the differences between the stability, reliability of a currency and its global status. According to his remark, the dollar has not emerged into the top five most stable currencies.

Many consider the US economy to be unstable, with stagnation intermittently, some say that America's gold reserve (the largest in the world) is not that large, and the US national debt of 16 trillion. equal to more than 100% of US GDP.

However, the worst forecasts of analysts, who promise the dollar devaluation, do not come true. America can be said to be prosperous, but the dollar in 2019 is not the most stable currency in the world. Most of the exchange transactions, as well as import and export operations, take place in dollar prices, which is why it is assigned the status of a reserve currency.

It is better to store capital denominated in dollars, not in them themselves, but in dollar assets.

The most reliable currency in those countries that devote efforts to maintaining the exchange rate at the same level. There are few such states. These are Norway, Switzerland and Sweden (we remind you that in 2008-2009 the Norwegian krone was recognized as the most reliable currency in the world). The euro has also proven itself well as a young currency that is recognized as a reserve currency.

List of the strongest currencies

In order to find out in which currency it is better to invest your finances, in which of them your savings will be effective, and when it is better to convert your earnings, let's figure out which currencies deserve the trust of investors around the world.

Swiss franc (CHF)

As we have already said, Switzerland conducts wise macroeconomics, which is aimed at maintaining the exchange rate of the franc. The Gold and Foreign Exchange Fund reinforces the franc by 40%, and this is thanks to the Bank of Switzerland. Banking secrecy is the main milestone of his policy. This means that any depositor (be it a state, a corporation or an individual), having deposited money in a Swiss bank, can be confident that even the interest rate will remain secret, not to mention all other data.

About 10 years ago, a Swiss bank disclosed the interest rate on the deposit of one of the American banks, and stock speculators who invested in the franc lost their savings in a few minutes.

The Swiss National Bank does not allow the devaluation and sharp growth of the franc. When conditions were created for the natural growth of the Swiss currency in 2011 (huge debt obligations dragged the European Union into crisis), the National Bank demonstrated what a stable currency is.

Its head announced that he would not allow the franc to rise above 1.2 euros per franc. After this, the EU's claims subsided, and the franc has been at the top of the list of the most reliable currencies for about 80 years.

Note to investors. The inflation rate usually does not exceed 0.5-0.6% per year; Switzerland ranks 14th in terms of external debt, 1 franc = 1.08 dollars (in 2012 it was 1.05). It is better to invest in francs, despite the modest Swiss bond market in 2019.

Euro (EUR)

The economic situation in the Eurozone is one of complete uncertainty. But with the euro, everything is clear and predictable - a decline in quotations during the global crisis is not surprising, but their decline to the point of losing its status as a world reserve 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. Moreover, many developing countries have joined the EU, so economically more developed countries have to pull down their economies with their own efforts. This suggests that the euro exchange rate will decrease slightly.

Japanese yen (JPY)

This is what the post-war “economic miracle” led to - the national currency of Japan has long been considered one of the most stable and reliable. Such data is provided by technical and fundamental analysis. Inflation does not exceed 1.2%, and redenomination has not been carried out in Japan even once over the past 65 years - these are convincing arguments for investing in the yen.

In general, Japan is a quiet haven for investment, but there were some “storms”. The nuclear disaster led to long-term economic stagnation. They say that soon Japanese banks will begin to allocate significant sums to buy gold to bolster their national currency and economy. Japan currently ranks 8th in the world in terms of gold reserves. Beyond the adverse circumstances, the yen is in the category of the strongest currencies. Today 100 yen = 0.89 US dollars.

Note to investors. In 2012, 1 yen was equal to 1.25 dollars. The exchange rate fell, and this is due to the stagnation of the world's leading economies. The leading positions of the Japanese economy were ensured by high-tech developments in the field of IT; the demand for them decreased slightly. Last year, the yen was recognized as the worst performing currency.

Norwegian krone (NOK)

In 2008-2009 The crown surprised the whole world by being recognized by HSBC analysts as the most stable currency. As we remember, 2008-2009 were the years of the previous economic crisis, which did not affect the exchange rate of the crown. The growth rate is slow, but the upward trend was noticeable. In recent years, the Norwegian currency has remained among the three strongest.

It cannot be said that the kroner has always been on the list of the best currencies, because the Norwegian economy is focused on oil production. Consequently, the economic sensitivity of the krona has always remained - just as the price of oil fluctuates. The krona's breakout came as a surprise because it was a weak, volatile currency.

Thanks to impressive volumes of gas and oil exports, Norway has accumulated a huge reserve fund, which keeps the kroner at the highest rate against the dollar - 1 kroner = $1.33. This figure is higher than the euro, franc and yen.

Note to investors. While the economic crisis and falling oil prices affected even the Russian ruble, the Norwegian krone was spared these factors. You can invest. Today it is a really strong currency.

Swedish krona (SEK)

While the economies of other countries rely on printing new money, Sweden’s policy in this matter is aimed at fundamentally maintaining the exchange rate of the krona. This is the main advantage of the Swedish national currency, because timely regulation of financial issues does not give rise to the chance of inflation and devaluation.

What do you think is the most valuable currency in the world today?

Most believe that the British pound is the most expensive currency, however, as it turns out, this is not the case.

Especially for blog readers, we have compiled a list of the most powerful currencies in the world (as of January 13, 2019).

So, the most expensive currency in the world...

No.1 – Kuwait Dinar (1 KWD = 3.29 USD)

Currency code – KWD

1 KWD = 3.29 USD
1 KWD = 220.603 RUB

Kuwaiti dinar - the most expensive currency in the world against the dollar and Russian ruble.

Kuwait is a small country with enormous wealth. The high value of its currency is explained by the significant export of petroleum products to the world market.

No.2 – Bahrain Dinar (2.65 USD)

Currency code – BHD

1 BHD = 2.65 USD
1 BHD = 177.25 RUB

The Bahraini dinar is the second most valuable currency in the world.

Bahrain is an island state in the Persian Gulf with a population of just over 1 million people. As in the first case, the main source of income for this country is the export of black gold.

Interestingly, the Bahraini dinar is pegged to the dollar, and for the past 14 years, its value relative to the dollar has not changed.

No.3 – Oman Rial (2.60 USD)

Currency code – OMR

1 OMR = 2.60 USD
1 BHD = 177.25 RUB

Oman is a country on the Arabian Peninsula. Thanks to its strategic location, it has a developed economy and a high standard of living.

The Omani rial, like the Bahraini dinar, is pegged to the dollar.

Interestingly, the purchasing power of this currency is so high that the government has to issue paper notes in denominations of 1/2 and 1/4 rials. In the picture above you can see 1/2 rial.

No.4 – Jordan Dinar (1.41 USD)

Currency code – JOD

1 JOD = 1.41 USD
1 JOD = 94.25 RUB

It is quite difficult to explain the high value of the Jordanian dinar, since the country is not particularly developed economically and lacks important resources such as oil. However, 1 Jordanian dinar costs about $1.41, making it one of the 10 most expensive currencies in the world.

No.5 – British Pound (1.26 USD)

Currency code – GBP

1 GBP = 1.26 USD
1 GBP = 85.25 RUB

It is the British pound that everyone considers the most expensive currency in the world, but as it turns out, it is only in 5th place.

By the way, the British colonies issue their own banknotes, which are visually different from the banknotes issued by the Bank of England, but are quoted 1 to 1.

So, there are also: Scottish, Northern Irish, Manx, Jersey, Guernsey, Gibraltar pounds, as well as the St. Helena pound and the Falkland Islands pound.

It's funny, but native Britons don't always want to accept "other" pounds as payment.

No.6 – Cayman Islands Dollar (1.20 USD)

Currency code – KYD

1 KYD = 1.20 USD
1 KYD = 81.25 RUB

The Cayman Islands are one of the world's top tax havens. These islands have given power to hundreds of banks, hedge funds and insurance companies.

In particular, due to its leadership among tax havens, the Cayman Islands dollar is worth about US$1.22.

No.7 – European Euro (1.14 USD)

Currency code – EUR

1 EUR = 1.14 USD
1 EUR = 76.34 RUB

Even though the Euro currency has lost about 20% of its value over the past year, it is still one of the strongest currencies in the world.

Part of its strength comes from the fact that it is the official currency of 17 European countries, including several economic heavyweights.

In addition, the Euro is the world's second reserve currency, covering 22.2% of all world savings (for the dollar - 62.3%).

No.8 – Swiss Franc (1.04 USD)

Currency code – CHF

1 CHF = 1.04 USD
1 CHF = 68.05 RUB

Switzerland is not only one of the richest countries in the world, but also one of the most stable. Its banking system is famous for its unwavering "Banking Secrecy".

Moreover, their high-tech products are appreciated all over the world.

Pay attention to the original appearance of this bill. This is the only currency that I have seen that “looks” vertical.

No.9 – US Dollar

Currency code – USD

1 USD = 1.00 USD
1 USD = 66.95 RUB

Due to America's leadership on the world stage, its currency has achieved the title of “world reserve currency.” In other words, you can pay with dollars anywhere in the world.

No.10 – Canadian dollar (0.75 USD)

Currency code – CAD

1 CAD = 0.75 USD
1 CAD = 50.45 RUB

The Canadian dollar is the world's fifth-largest reserve currency. It is often called a "loonie" after the bird featured on the $1 coin.

Dropped out of the top ten

Due to the dynamically changing economic and political situation in the world, it is difficult for a currency to remain in this ranking, so here is a list of currencies that left the top ten in previous periods.

Australian dollar

Currency code – AUD

1 AUD = 0.73 USD
1 AUD = 48.29 RUB

Interestingly, the new range of Australian banknotes, as pictured above, will have a tactile feature (Braille) to help the visually impaired community identify the denomination of the note.

Also in Australia, the fight against “cash” is being waged by reducing the share of cash payments when making small retail purchases.

Libyan Dinar

Currency code – LYD

1 LYD = 0.72 USD
1 LYD = 47.44 RUB

The Libyan dinar has tokens called dirhams. Interestingly, one dinar is equal to 1000 dirhams, and not 100, as we used to think.

Azerbaijani manat

Currency code – AZN

1 AZN = 0.59 USD
1 AZN = 39.25 RUB

It is, of course, surprising to see the Azerbaijani manat on this list, but the currency of this Middle Eastern country is only slightly cheaper than the US dollar.
But despite what you might think, the local economy is actually quite strong and its unemployment rate is low.

Is a high currency value a sign of a strong economy?

It is known that the currencies of not particularly successful countries tend to decrease in value. However, when the economy is doing well, we are unlikely to see the opposite effect.

Indeed, in practice, there were practically no cases when the value of a currency constantly increased. The reasons may be different, but generally speaking, the state itself does not benefit from the constant strengthening of the currency, because the population begins to actively save money instead of spending it.

Thus, the high value of the currency only indicates that inflationary processes in the country are under control.

In the context of this article, mention should also be made of Japan and its one of the strongest economies in the world. At the same time, the value of the Japanese yen is very small, $1 = ¥109.77.

Information about the highest value currencies is unlikely to be used by investors to make any investment decisions. In this case, it is better to consider the most stable currencies.

By the way, did you know that you cannot use images of banknotes without the inscription “SPECIMEN”? Let's learn to obey the laws, comrades!