From the time since mankind started trade, “currency” has had many forms. Initially serving the purpose as commodity (wheat, sugar, barley, etc.) and later being precious natural resources – diamond, gold, bronze etc. A currency now, is known as the official money or bank notes that a country will operate with. They have been a medium of exchange and yet remain to be for the years to come. Today we list some of the world’s strongest and most stable currencies that can influence world’s economy through our list of top 10 strongest currencies of the world.
To best judge who are the strongest currencies we should look at the FOREX Market (Foreign Exchange Market) to see which currency affords the most interest. Remembering that this is an exchange and so you could have 4 currencies each possessing 50 % of the trade. There are 3 foreign exchange markets in the world, American market, European market and Asian market. The below figures are worked out from the combined interest in all three markets that a currency has had. *Note: The exchange rates are for guidance only, as they are always changing. This is a list of the top 10 strongest currencies in the world, as measured by percentage of the foreign trade market
Percentage of foreign trade: 1.5%. Exchange rate to the US Dollar: 1=$0.16
The Norwegian Krone was first floated in the market in 1875. This was a planned move to replace the Norwegian Speciedaler, which was then the most commonly used currency in Norway, Denmark and Sweden. Recent years has seen a boom in the need for crude oil and it is this that keeps this currency strong to the point where it is gaining ground, even on the Euro and US Dollar.
Hong Kong Dollar
Percentage of foreign trade: 2%. Exchange rate to the US Dollar: 1=$0.12 Being the 8th most traded currency in the world, the Hong Kong Dollar ranks at number 9 on our list of top 10 strongest currencies in the world. The currency is available in both banknotes as well as coins and is sub divided into 100 cents. Hong Kong sees a lot of international trading with Southern China and this keeps its Dollar strong. Hence, as of now, it is used in 2 regions as primary medium of exchange; Hong Kong and the Macau.
Percentage of foreign trade: 2%. Exchange rate to the US Dollar: 1=$0.15 Sweden has one of the most stable economies in the world and so it is hardly surprising that their currency should attract some interest. The Swedish Korona ranks at number 8 on our list of top 10 strongest currencies of the world. It has been the official currency of Sweden since the year 1873 and as also referred by locals as the Swedish Crown. Before 2010, it used to operate with both currency notes as well as coins. But after that, only Swedish Crown bank notes remained valid which could be sub divided into 100 ore.
Percentage of foreign trade: 4%. Exchange rate to the US Dollar: 1=$0.97 Often referred as the ‘loonie’ since it has an image of a loon, the Canadian Dollar ranks at number 7 on our list. The history of Canadian Dollar goes way back to 1861, when currencies of 3 colonies including Nova Scotia, New Brunswick and Canadian Colony merged as one and became Canadian Dollar. The strength of the Canadian Dollar is very much linked to the commodities markets such as precious metals, mineral and crude oil; it is therefore often the choice as currency of trade in these areas. .
Percentage of foreign trade: 4%. Exchange rate to the US Dollar: 1=$0.92
With 5 mutual regions operating with a single currency, Australian Dollar ranks number 6 on our list. These 5 regions include Christmas Islands, Pacific Island States, Keeling Islands, Norfolk Islands and Tuvalu. On floating its value in 2011 and gaining exchange power, the Australian currency has become popular among currency exchangers.
Percentage of foreign trade: 6%. Exchange rate to the US Dollar: 1=$1.06 Pet names including Stutz, Frankler, Liber and Thune, Swiss Franc ranks number 5 on our list. It is, as of now, the legal currency and medium of exchange for Switzerland and Liechtenstein. The Switzerland is considered a safe haven for money and as its value often increases when others decline, it is often sought after. This can be determined by the Swiss inflation rate, which was said to be -0.2% for the year 2013.
Percentage of foreign trade: 17%. Exchange rate to the US Dollar: 1=$1.53 Most commonly known as the Pound, is legally termed as the official currency for 6 other regions apart from the United Kingdom. The Pound is often liked because of its high value in comparison to other currencies. Not only this, no matter what economic crises the world is facing, the British Pound Sterling relatively stands a stronger and stable footage.
Percentage of foreign trade: 20%. Exchange rate to the US Dollar: 1=$0.01
The 3rd most frequently traded currency in the world is the Japanese Yen. The word Yen comes from Japanese language origin, which means round. Yen is probably the only currency in the world that has experienced some of the most abnormal exchange rates due the war years as well as the post war years. The Japanese Yen is a popular currency for use in international trading.
Percentage of foreign trade: 37%. Exchange rate to the US Dollar: 1=$1.32 The Euro is the by far the largest currency in circulation as is not only used in Europe but also by 150 million people in Africa. This makes it the second largest and most commonly traded currency in the world.
Percentage of foreign trade: 90%. Exchange rate to the US Dollar: 1=$1 Even through the global economic troubles, the US Dollar remained the currency of choice by many and several countries still use it as their official currency.