World currencies from all over the world had taken a banging with the economic crisis and the EURO is facing a dire string of challenges. Many powerhouses in Europe and tired of carrying the weakened currencies of other countries and the collapse of the EURO may see an entire new economic crises of Europe. The strongest world currency is always a question being discussed and argued at many a dinner party and in this informative article we look at the most prominent list of world currencies and give a short evaluation of them and in turn discover what are the strongest world currencies.
Five Major Currencies of the world
For many previous years the dollar was the top currency in the world, it’s the world’s reserve bank of currency. Of recent the dollar has seen its fair share of problems as its value has lowered over the years. The dollar is ruled out as the top currency in the world due to the economic crisis and large government spending.
Switzerland is known for its tax havens and the Swiss franc reflects this in its strength and economic growth. The Swiss Franc is definitely one of the major world currencies and is a contender for the top currency of the world because of its low inflation rate.
As previously mentioned the EURO has seen some incredibly unstable situations of late but it is still one of the major and prominent currencies on this list of world currencies. It was the main contender against the dollar in terms of currency status but the crisis has shifted economic and financial stability.
At one stage in history, the British pound was one of the most successful of world currencies. This past decade the British pound has been incredibly strong but due to many contributing factors the value may drop or fluctuate somewhat. Interest rate cuts and other factors will be determining the strength of this currency which is among the top currencies in the world.
The Yen is among the top world currencies and although the Yen poses much strength, there are many downfalls. Their economic growth is low and real estate largely overpriced. The interest rate in Japan are incredibly low and the country’s main banks are able to further lower it to ensure exports do not cost too much overseas.
Although these may be the strongest or more prominent world currencies, there are many factors making one particular currency the most valued. It is definite to see that arguably the two main contenders are the Yen and the British pound.
Jemma Scott has an avid interest in currencies from around the world. Her interest stems for her discussions with foreign exchange brokers which have valuable information on the currency markets through the use of informational means like their forex account.