why does UK has the strongest currency?

Question

Like Japan and U.S. is about as rich as Britian but their currecy is much different.

Answer 1

only developed major growing and stable economy for the last 10 years was the British and the world respects British financial institutions such as the Bank of England leading to a very stable and valuable currency.

Answer 2

The "value" of a currency does not necessarily relate to the economic performance of a country; ie; because the £ is strong against the dollar does not indicate that the US economy is in worse shape than the UK's economy.
The value of a currency has a lot to do (among other things) with the interest rate of the country's currency, in other words supply and demand will dictate the "price" (value) of the currency.

Answer 3

UK currency is not the strongest.In international market Sterling is not in demand.The strong currencies in the West are US $ and Euro.
US currency is strong due to exposure to world trade and internal economic stablity.If you consider the share of percentage of world trade Britan enjoys with US position ,it will be clear that Pound -Sterling is the weakest in the Western countries.
Japanese currency is not an international currency.But within Japan it is highly stable due negative inflation.The reason for dumping Japanese goods all over the world is due to the internal strength of their currency.

Answer 4

Its relative to cost of living. The Pound is set higher than the US dollar, but if you earn 25,000 British Pounds in the UK or 50,000 US Dollars in the US, its going to tend to even out. It is not as if people working in Mexico get the same pay in Pesos as you would get in British Pounds. It would be considered comparable with differences due to cost of living expenses for your country.

It might fluctuate somewhat based on your countries economy as well ie. the US dollar is weak right now due to a weak US economy. The Canadian dollar is strong however. So Canadians right now do a lot of shopping in the US on weekends if they are close to the border as the cost of living is cheaper in the US. You can buy the same thing there as in Canada but for less. It used to be the other way. It would otherwise not mean much to most Canadians that their dollar was doing well, as they pay the same price in Canada regardless.

Answer 5

What do you even mean? If you mean that one pound > one dollar, that means little, it's just a historical accident that things have turned out that way with the unit values of the currencies. (In the past 100 years the pound has been as high as $4 and and low as $1.) In other words, there is zero reason to expect national currencies to all equal each other. They were created in different times and different places at different values. That in itself does not mean one currency is "stronger" than another.

Answer 6

Because our inflation is outrageous

Its not the currency that is worth more - its that our stuff is more expensive so it seems like you're getting more for your money when you buy something abroad.

Answer 7

i think it has something to do with the remains of the british empire. all i know is that the last time i check the pound was worth 2.6 dollars....to me thats good. adn i've never been to america

Answer 8

I thought the Euro was the stronger of the two

Answer 9

I dunno...some woman called Prudence?

Answer 10

Maybe her name was Penny?