What are the strongest currencies in the world?

Given that in a multi-currency and international monetary system such as the current one, the own money of the different countries and states of the world extend several functions of great importance for the global economy, it is interesting to know which are the world currencies of greater value and strength.

What are the strongest currencies in the world? Image: Pixabay
What are the strongest currencies in the world? Image: Pixabay

On the one hand, there are certain currencies that are official currencies both in the issuing countries and in other territories. In this way, it is the exchange values on which most of the transactions recognized by the internal market of each country are sustained. This explains why, with its currency, current commercial exchanges are carried out day by day.

On the other hand, in those large transactions of international goods or services, the currency in which certain agreements are closed involves an extra expense or savings for both buyers and sellers. This determines that the operation is beneficial for some and not for others, as well as that it fulfills the function of giving security to certain economies over others.

And finally, there is the world currency market itself, in which the currencies themselves become investment goods. With a few exceptions, this is the case because the value of currencies is always subject to market movements and laws, taking into account supply and demand. This is the way in which the value of a currency can oscillate in the same way as any market value, causing profits or losses to investors.

The world's strongest currencies

There are many currencies, but the world's currencies and their value are those that have earned their place thanks to the economic strength of the issuing countries. Those that do not fall within that classification have not achieved it for various reasons such as their strategic vision in the world of international trade, or its stability as defensive security in times of financial instability. This is a selection of the world's strongest currencies:

The U.S. dollar is the most widely traded currency worldwide. The dollar was originally created in 1972 and used by many states, mostly as a reserve currency. Ecuador, El Salvador, Panama, East Timor, Zimbabwe, and others all use the dollar as their official currency and means of payment.

The euro, being the youngest currency of the creation in this list, is the one that constitutes, in terms of turnover, the second most important currency of reserve, after the dollar. It has been in circulation since 2002, and today it is the official currency of 19 European states.

The yen has been in use since 1874. It is an official currency of Japan and is the third most widely used currency for business worldwide. The great regulatory measures that this country imposed on its currency and its great stability, made the yen is one of the reserve currencies chosen by Asian countries.

The pound sterling is the oldest currency. So much for its circulation, since the early twentieth century is that its value already reflected the hegemonic position of the British Empire around the world. From the 1990s it regained some stability, although Brexit may presume a new challenge to the mistrust of the pound.

The Swiss franc is a currency that found a neutral position in Switzerland during World War I and World War II. Assuming that they trusted the Swiss franc as a reserve value and exchange currency during those years is that the current Swiss franc has great importance in the financial sector and banking sector of their country.

The Australian dollar was introduced in 1966 to replace the Australian pound, which is another currency of great importance for international business, especially in Asia. Since 1998, the Australian dollar has been made from plastic polymers to prevent counterfeiting and increase its durability.

The Canadian dollar is another important currency in the world economy. It is marketed mainly in Central America and Europe. This dollar has inscriptions in both English and French, which are the two official languages of your country.

The Mexican peso is one of the most important currencies for commercial operations throughout Latin America, as it was the first to use the $ symbol, more usually associated with the U.S. dollar today.

More recognized as a yuan, the renminbi is the official currency of the People's Republic of China. It is the basic unit of the renminbi and both share the same symbol.

The Swedish krona is traded mainly in Europe and is based on the production and export of palladium and steel, among other high-value metals.

These are the world's strongest currencies of great importance within the global economic system. Currencies in which most of the commercial operations are executed every day.

Source: A24

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