whats the worlds strongest currency? what makes it the strongest currency?

Question

I thought it would be US dollar because america is the richest country. but the exchange rate against other currencies like the british pound and the euro is poor. so if the wealth of a country doesnt determine the strength of a currency what does? and what is the strongest currency in the world? and is having a strong currency really a good thing?

Answer 1

the strongest i how of is a cyprus pound

a strong currency is good for importing goods but bad for exporting vica versa is true for a weak currency. that is why the dollar has become so weak its a way for the US goverment to try to decrease its balance of payments deficite.

Answer 2

The U.S dollar is at a whole the strongest currency. It is the international standard for international markets. The reason the euro is so strong is because of the reserve of the entire European Union. At this time the European Union matches the U.S in terms of GDP. Trade with the Euro benefits european markets with no high tarrif from other European Union members. The U. S dollar has seen a steady rise the past two years against all major currencies. It is yet to be seen if the Euro will replace the American dollar at the international standard because the problems of having each european country convert the euro and set their own interest rates. The US dollar in this way is under federal reserve of one country which is used as a strength. There has been proposal"not very strong ones" of the U.S to from in a North American Trading block (ie just like european union) with Canada and possible south american country forming a "Amero".. see.http://en.wikipedia.org/wiki/Amero

Answer 3

It has been the US dollar for a long time, for it's stability. However - this is threatened by the huge debt we have incurred and the number of dollars held by lending nations, such as China.

It is stability and resistance to inflation that makes a good currency.

The value of a currency in relation to other currencies is not so much a measure of strength as an indicator of trade between countries. This has good and bad points. As a currency gains value, it's nations products become too high priced, and as currency loses value, the products of other countries become too expensive and it's ability to trade is improved.

See my link to the International Monetary Fund

Answer 4

As WOAH reported the Maltese Lira become probably the most useful forex as its value become purely about $4 in step with Lira. although the Lira has been abolished because January a million, 2008 for the Euro. The Euro must be the most useful forex at modern as a results of the undeniable fact that is utilized through 12 countries interior the ecu Union. that is better than the U.S.$ as 1Euro = $a million.fifty seven.

Answer 5

I kind of like agree with you...ya i guess and my guess can be wrong for this one at least it is dollars...The reason is of course america the supreme nation the richest...well recently i got a mail saying that india is probably the richest country in the world coz someone got some stone that which the world bank cnt even stand and afford....and its said to be worth more than 10 bill gates..can it be true?dont know whether its a rumour

Answer 6

Historicaly...
US Dollar.
Swiss Franc.
British Pound..
Strength is historic ability to resist run-away inflation / deflation..

Answer 7

it is not the dollar..........the dollar is weak. especially when you go to other countries. IN theUS, yes it may be strong but anywhere else it sucks. I would guess its the British Pound....

Answer 8

the euro will rule eventually.