Pakistani rupee (PKR) has been under pressure since some time seriously losing its ability to pay and has pushed the country towards a profound economic crisis. Though currencies have an acknowledged tendency to fluctuate and remain volatile in their very nature but they also stage recovery either early or after some time.
The vital difference in such currencies and Pakistani rupee is that the chances of the latter making a comeback are rather scarce and it may not be able to gain the value it held just a few months before. Moreover, the current economic situation is such that the rupee will remain under pressure further losing its value.
In the backdrop of the current position of Pakistani currency it is imperative to look at some currencies that are considered stronger and more valuable than others making them particularly attractive to investors and traders.
Foreign currency is priced based on its exchange rate which represents the value of one
currency in terms of another currency.
Exchange rates are determined by the supply and demand of each currency in the foreign exchange market. The value of a currency can fluctuate based on a variety of factors, including economic conditions, political events and changes in interest rates.
Exchange rates can be quoted in two different ways: as a direct or an indirect quote. In a direct quotation, the foreign currency is the base currency; while in an indirect quote, the domestic currency is the base currency. Foreign currency can be purchased and sold in the foreign exchange market through banks, brokers or online platforms.
The exchange rate at the time of the transaction will determine the cost or value of the currency being exchanged. The global economy is influenced by a multitude of factors, ranging from political events to local economic conditions.
Currencies play a vital role in this complex system, and the strength of a currency can be a significant indicator of the economic health of a nation.
Kuwaiti Dinar
The Kuwaiti Dinar (KWD) is considered the strongest currency in the world with a value of 1 KWD equaling $3.26.
The KWD is un-pegged allowing it to move freely and is supported by Kuwait’s sizable sovereign wealth fund managed by the Kuwait Investment Authority (KIA).
The economy of Kuwait is heavily dependent on oil and gas exports making it vulnerable to fluctuations in global crude oil prices. However, the KIA has drawn up a plan to counter this and ensure the value of the KWD remains strong and stable.
Bahraini Dinar
The Bahraini Dinar (BHD) is among the most valuable currencies in the world, with 1 BHD equaling $2.65. Despite the detrimental effects of low oil prices on Bahrain’s economy, the BHD has remained relatively stable since 2011.
Bahrain’s low and stable inflation rate has strengthened the economy and helped maintain the value of the BHD.
The country has also implemented policies to promote foreign investment and diversify its economy beyond oil and gas.
Omani Rial
The Omani Rial (OMR) is one of the most expensive currencies in the world, with 1 OMR equaling $2.60. Oman’s traditionally rigorous monetary policy and financial restrictions have helped maintain the value of the OMR against the dollar.
The country’s lending restrictions favor offshore enterprises and Forex trading initiatives with a high-risk appetite. Oman is also investing in renewable energy and tourism to diversify its economy and reduce dependence on oil exports.
Jordanian Dinar
The Jordanian Dinar (JOD) has a higher value than the USD with 1 JOD equaling $1.41. Jordan pegged its currency to the US dollar in 1995 to attract American investments. To sustain the peg, the JOD must maintain its value in relation to the US dollar.
Jordan has successfully done so in the first two decades of the 21st century. The country has implemented economic reforms to reduce its budget deficit, attract foreign investment, and
promote economic growth.
British Pound
The British Pound (GBP) is another strong currency, with 1 GBP equaling $1.26302. The Bank of England plays a crucial role in determining the value of the GBP but inflation, economic growth and Forex market sentiment also influence its value.
The UK’s stable economy and leading position in global affairs makes it attractive to foreign investors, but political and economic events can also affect the value of the GBP.
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