#11-20 – currencies in the running
Taking into account the volatility of the exchange rate, several national currencies have a good chance of pushing the Canadian dollar out of the top ten (10) most powerful currencies soon. See the following list for more details:
- Singapore Dollar – $0.73;
- Bruneian Dollar – $0.73;
- Libyan Dinar – $0.72;
- Australian Dollar – $0.70;
- New Zealand Dollar – $0.67;
- Bulgarian Lev – $0.58;
- Bosnian Convertible Marka – $0.58;
- Aruban Florin – $0.56;
- Fijian Dollar – $0.47;
- Israeli Shekel – $0.27.
We’ve prepared a histogram to illustrate the 20 most expensive world currencies in 2019:
What can we tell from the currency value?
If you had to choose between a million dollars and a million euros, what would be your choice..? The euros would definitely be the best option because this currency has a bigger purchasing power.
In this case, the value of the currency means a lot, but in terms of economy, the currency unit value isn’t the most important thing.
Let’s look at Japan, for example. It is the country, which holds 4th position in the world GDP per capita ranking, is fifth best in the world in terms of industrial output, and No.1 world’s robotics producer. All this is achieved despite an almost complete lack of natural resources.
And do we need to mention that Japanese cars are all over the world?
However, the Japanese yen exchange rate to US dollar is: 1 JPY = $0.009, or $1 = 110.56 JPY.
At first glance it looks like the Japanese yen has fallen in value; in fact, over the past 40 years, its value has strengthened several-fold against the US dollar. In 1975, 1 US dollar was equal to 310 yens.
At a certain point, the government of Japan even decided to decrease the value of currency for economic purposes and held so-called currency interventions.
In this context, it’s more important to estimate the inflation rate. In other words, the generally stable value of the Japanese yen is a sign that the currency is strong. Let’s look at another currency: the Russian ruble. Its value has decreased by half over the past several years, which means the inflation rate is high and the currency is weak.
To sum it all up, here are the best takeaways from our top list:
- The Kuwaiti dinar is the highest valued currency in the world;
- The Pound sterling is the most expensive world currency with a floating (not pegged) exchange rate;
- The US dollar is only ranked 9th among the strongest world currencies;
- The value of a currency unit is not the most important thing in terms of the economy.
Thanks for reading!