Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
The Most Reliable Currency For Savings
Reading Time: 4 minutesInstability in the modern world affects the value of currency (dollars, euros, etc.) and the ability of people to protect themselves and maintain their lifestyle and business success. For people who are looking for reliable currencies to maintain stability, it is important to know about the most reliable ones. You can also improve your experience in money exchange – Rates is the most useful tool for this purpose. The service with which you can track currency exchange rates in financial institutions of Ukraine is available at any time of the day – from the USA to Canada.
What Determines The Price of a Currency?
Trade has been around for quite some time. When it entered a stable channel, the first money began to emerge. They were made of gold and silver, and there was no talk of a national currency yet. Each penny had a real weight, which directly affected its value.
It took a long time before people realized that using precious metals was too expensive. And paper money came into circulation. They cannot be printed in unlimited quantities. There should be exactly as much paper money as the country’s gold and foreign exchange reserves can cover.
Based on these factors, as well as the degree of development of the state’s economy, investment attractiveness, and other nuances, the value of the national currency is determined. The most expensive currencies are the money of countries with developed economies.
The Best Currencies In The World For Stability
The vast majority of people are predominantly focused on the dollar and euro. But there are many other currencies in the world that are no less stable.
Swiss Francs (CHF)
The Swiss currency is quite expensive. Frank is not prone to sudden jumps and fluctuations. When there is a crisis around the world, the Swiss franc still grows naturally. This stability has led to the fact that the inflation rate in the country in recent decades does not exceed 0.5–0.6%.
Kuwaiti Dinar (KWD)
This is the most expensive world currency and has held this position for almost 20 years. The reason is the state’s leading position in global oil production. The cost of one Kuwaiti dinar is very high.
Bahraini Dinar (BHD)
The high price, as with the Kuwaiti dinar, is ensured by the leading position of the state in global oil production.
Omani Rial (OMR)
The State of Oman is an absolute monarchy. There is no unemployment or homelessness here. The standard of living of citizens is high and constantly growing. This ensures the high stability of the national currency.
The value of one Omani rial is approximately the same as the Bahraini dinar.
Japanese Yen (JPY)
It is one of the ten most stable world currencies. Almost 20% of global transactions are secured by the Japanese yen. Even a nuclear disaster could not undermine the stability of the national currency.
Pound Sterling (GBP)
This currency is considered one of the most attractive for forming savings. For many states, it is a reserve one. The exchange rate is quite high – higher than the euro or US dollar.
Euro (EUR)
One of the youngest, but quite stable currencies. Very prone to jumps and fluctuations, but for many countries it is a reserve. Despite some instability, it will not lose its importance in the global economy.
US Dollar (USD)
It is the most popular and sought-after currency in the world. An impressive share of international transactions cannot be done without the dollar. Quite a few states conduct internal transactions in dollars.
And although the United States no longer has gold and foreign exchange reserves, the dollar is unlikely to fall to critical levels.
Swedish Krona (SEK)
There are practically no people in the country who live below the poverty line. The state actively pays benefits to people with low incomes. Despite the stability of the economy, the crown exchange rate is quite unstable – it reacts to any fluctuations in the economy.
Australian Dollar (AUD)
A stable currency, it is national for the mainland and adjacent islands. The Australian dollar is doing well in the international economy.
Analysts consider the Swiss franc to be the most stable currency. It is officially used for payments as the national currency in Switzerland and Liechtenstein. Besides that, Swiss banks are also considered the most reliable banks in the world. The stability of the banking system and the country’s strong economy provide the franc with the status of a safe currency.
The franc is pegged to gold, one of the most stable precious metals. According to international analysts, this directly affects the currency’s stability.
The Swiss economy is also quite stable. The inflation rate over the past decade has not exceeded 0.6%. And although it rose to 2.2% during the pandemic, this did not in any way affect the stability of national money.
The Norwegian krone also shows stability. Norway has virtually no external debt. But when oil prices began to rise, the exchange rate dropped noticeably.
The Singapore dollar has no connection with the EU, but regularly appears on lists of the most reliable currencies. The state has a loyal tax system, which greatly attracts international investors. Recently, large Chinese businesses have been moving to Singapore.
Compared to Bitcoin or Ethereum, which have become very popular for investing and saving, the currencies discussed in the article are extremely reliable. If you are looking at currency as a means to create a financial cushion, then you can also look at other means of providing security against unforeseen situations – for example, purchasing an Aetna insurance policy.
Conclusion
Before making savings in a particular currency, you need to carefully study the situation on the world market and study the opinions of analysts. We also recommend using the Rates.fm service to track the exchange rate of currencies in financial institutions of Ukraine. This will improve your currency trading experience whether you are in Toronto, Shanghai, or Houston.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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