What do you all think about how a strong currency impacts a country's economy?
From my perspective, a country with a high-value currency gains an edge in global trade. It means their currency is worth more compared to others, allowing them to have better exchange rates with countries that have weaker currencies. So, if you want to get your hands on that strong currency, you'll need to trade a lot of your local money for it, which kind of makes the strong currency even more valuable while the weaker ones just keep losing value.
This also opens up more benefits in international trade. Investors dealing with strong currencies find it easier to import goods, and they often end up getting more products compared to those using weaker currencies when trading with countries that have a high-value currency.
I’ve put together a list of the top 10 most valuable currencies right now.
Do you think the strength of a currency really reflects the economy of the country?
Exchange rate is just one of the metric that influences a country's value.
Economic strength depends on factors like GDP, productivity among others.
Like the list you gave, if a strong currency and exchange rate determines values
US and China wouldn't be among the biggest giants of a country.
I can't really start pointing out lots of things but higher currency has its own disadvantage to an economy
Hence why no country are explicitly pushing their currency to be super expensive.
The Internet has deceived so many people today. Why will the lists of highest valued currency be like this? Who knows about Kuwaiti Dinar except it has the highest price. The strongest currency is obviously dollar and followed by Euro. I do not believe in all these internet but I believe in how people are using coins and also saving it. US dollar and Euro is far stronger than all these currencies.
The value of a country's currency has direct effect on the livelihood of her people since it definitely defines the stand and state of their international market.. It also appreciates work balance. In this countries, two of their currency is still marketable e.g it might b possible to still purchase some things worth 2 kuwait dinar. Unlike countries with weak currency where 2 of their currency doesn't exist physically handy except digitally.
You are logically correct. Dollar and euro are not just popular but are the dominating currencies in the global marketplace. However, I see that the list is just pointing to the number not necessarily the most used and dominating currencies
You're wrong. Popular does not mean strongest. They have better economies than the likes of Kuwait, but that doesn't mean they have stronger currencies. There's no ned to even argue, you can try converting both currencies and see for yourself.
As of right now 10 South Korean won is equal to 1 Ghana Cedi. Even the Nigeria naira is stronger than the South Korea won but that South Korea still have better economies than both these countries.
I've always known Kuwait to have the strongest current,y and I mean I've known this for over 10 years ago and it has always been so. What I do not understand is why. What exactly are they doing that has given their currency so much value and still maintains it?
You people are wrong including the articles that I am seeing online. More people use United States dollars and Euro. More people are using the both to trade more. More countries are using are using both currencies as one of their reserves. People from some countries are using both currencies including Pounds Sterling as hedge against inflation. Which of these currencies above are used for that. You people have been deceived.
Why is Russia, China and Iran are looking for Dedollarization. Why not looking for the Kuwaitdinarizarion. Those people are using price to deceive you people. Price does not mean anything. So any currency that has price higher than dollar will be at the top of dollar. That is completely wrong.
You're getting it all wrong. Nobody is arguing over which is more popular or which people use more. Nobody is deceiving anybody. Everybody knows what the dollar is. Strongest in this context means "more value".
Change 10 USD to Kuwait dinar and you'll get about 4 KWD. This is a fact, it's not up for argument. It doesn't mean meaning countries can use it as reserves and shit because considering the size of their economy, you cant trust it as much as you can trust the USD or pounds.
How many countries have reserves in Swiss Francs? Does that also mean the USD has more value than the Fr? There are people who have simply not heard about this currency before. A lot don't even know what it looks like.
It doesn't seem so, as we can see on this chart, Kuwaiti Dinar as the "expensive" currency, the "value" doesn't increase overtime, instead if you hold KWD in 10 years, you're still in floating loss!
I think expensive currency doesn't give any advantage, it just in conversion they looks more valuable, but the real value should be check in graph.
So let us say because the price of BCH is $376 now, it is stronger than Solana with a price of $149 as of today? It should not be like that. The market worth of a coin is used to determine how a coin is strong. That is how it supposed to be in fiat also. Dollar and Euro are by far owned by people and countries than Kuwaiti Dinar. They are also the most traded. Know that price is just a number.
The Kuwait dinar is pegged to a basket of currencies , mostly the USD, so it can't go down on its own, the fluctuations against the USD are because of the fluctuations of the EUR or YEN.
Also the rest of the currencies are also peged to the USD like:
Bahraini Dinar , pegged to the USD since 1980
Omani Rial , pegged to the USD
Gibraltar Pound , same as the British Pound
Cayman Island Dollar, pegged to the USD
The strength of a country's currency is good, as it will help to demonstrate more power against foreign currencies, and it's, of course, a result of a good economy. But this is not an absolute measure of a country's economy/wealth. If not, countries like Kuwait and Bahrain should be leading the world economy.
But the case is not so, and even Japan, which takes the 4th spot has its money as devalued as $1 to ¥142. At times also, the BOJ would deliberately devalue the Yen. This measure has helped Japan sell more in the world market and hence boost its trade balance.
Let me give you a simple financial education.
Please first learn the difference between Expensive and Valuable!
The list you have provided, shows the top 10 most expensive currency. It has no relation with the most valuable currency.
If I create a currency today based on the value of diamond, it will become the world's most expensive currency. But if I am able to build a currency which is used by majority of the nations, that's the valuable currency.
I hope it will makes sense once you learn the difference.
Yes, I was trying to look at the US dollar and they are in the 10th spot? When they are the world currency?
In any case there are flawed in so called valued currency list. Admit it or not, USD is still most valued, although BRICS have been trying to de-dolarized, still though they are not successful before more country are still using USD to trade.
In any case, there could be some good currency in the list but I don't think they can be compare to USD.
I've watched a vlog of Drew Binsky and he explained that Kuwaiti Dinar is really the most expensive currency in the world and that's to their main product, oil. I have thought of it as the Saudi Arabia since the oil that comes from there is the one that's exported. A strong currency means that they also have a stable economy and looking at that chart posted above for the last decade, it only means that they have good governance and that's why the value of their currency remained strong. Compared to our Philippine Peso, it has been so weak but it's starting to keep up together with Japanese Yen.
Yes those are all benefits of a strong currency but there is also a downside here which is when the currency is strong, the exporters in that country will be less competitive since less foreigners will be interested in buying in their currency. What can be done to offset this disadvantage is if the strong currency sold to stronger currencies.
Yes a strong currency reflects the status of an economy. A strong currency means a country has low inflation, low national debt and a high GDP growth. This also might mean that the country's trade is doing well signalling a strong economy.
Not sure I buy the argument for strength by this definition because this is just unit size and the top ones have a higher unit denomination but it doesnt mean their prices are lower in that currency which should be a feature of a strong currency. Strong usually means easier to import as your currency in exchange is in demand and helps create a lower cost to all that nations natural holders of the currency, I think its PPP that relates this to GDP - Purchasing power parity.
UK has tons of debt, far too much and not really paid off after the pandemic. Its Norway maybe a few others that have tiny amounts of debt and a sovereign wealth fund, they also have oil and a few other things which I presume helps their currency to outweigh its size as Norway is a smaller nation.
This isnt the answer either, not even inverse as YEN can be very strong at times its just if all debt is called in; they owe so much its beyond repayment the total is purely negative but also great industry there.
Factors that can make a particular country stronger based on GDP, economic strength, productivity, politics or other resources because these elements are quite important as an effort to grow the power of a country in making its influence. For economic growth, I might agree because the areas you mentioned have a much better standard of living, but what can strengthen a country may not only be the exchange rate of the currency itself.
The dollar and the euro may dominate but are not necessarily as strong as the currencies you mentioned in quotes with exchange rates, but they dominate the global market even though we know that fiat currencies always have limitations that can weaken them under certain conditions.
The exchange rate of a currency has nothing to do with its value. The euro and dollar are included at the bottom of the OP's list, which are the only ones of value on this list. In general, at the moment, only these two currencies and the yuan are really valuable. Value in this case means relevance, for example, for government reserves, for international trade, etc.
In addition to the exchange rate, there is also such a thing as purchasing power. For example, the dollar in the United States has much less purchasing power than the same dollar in some poorer country. This is due to the different standard of living in different countries.
I miss bitcoin in that list, which according to https://fiatmarketcap.com/ would not be in the top 10, but the 13th. However, I think it will continue to climb positions and will enter the top 10 very soon. Possibly this year.
Eventually we will see it in the first place.