With the coronavirus outbreak, the markets have taken big hits, commodities have plummeted, and investors have become more cautious with their investments. Currencies worldwide have fluctuated this year more than usual, while the economic crisis and recession have shown their claws once more. For some, it’s maybe surprising to see that the “big” currencies stayed up top.
These are the top currencies for 2020.
- Kuwaiti Dinar (1 EUR = 0,36 KWD)
A small country with massive exports, this is the winning combination for the Kuwaiti currency.
- Bahraini Dinar (1 EUR = 0,44 BHD)
Much like Kuwait, the country’s small size, combined with an essential revenue from the oil industry, allows the currency to come out strong.
- Omani Rial (1 EUR = 0,45 OMR)
Much like Kuwait and Bahrain, Oman is among the big oil exporters, which maintains the economy.
- Jordanian Dinar (1 EUR = 0,83 JOD)
The first country in the list, which is not an Oil exporter, the reason for the Jordanian Dinar to be so high in the list is, it is pegged to the US dollar for the past 20 years, and without a sign of changing.
- Pound Sterling (1 EUR = 0,9 GBP)
The official currency of the United Kingdom, it has always been one of the most exchanged currencies. Although some essential fluctuations happened during the year, it still came out strong.
- Cayman Island Dollar (1 EUR = 0,97 KYD)
A Tax Haven and one of the biggest financial hubs in the world, this island nation provides offshore bank licenses for plenty of banks and financial institutions.
The EU’s official currency and the second biggest reserve currency, the countries using the Euro, are among the most developed countries in the world; it’s not a surprise to find it high on the list.
- Swiss franc (1 EUR = 1,07 CHF)
Switzerland is one of the wealthiest and most stable countries globally; good monetary policies and low debt have made the swiss franc one of the strongest currencies.
- US Dollar (1 EUR = 1,17 USD)
The most exchanged currency globally and used as the official currency in 10 countries besides the US, The US dollar is the most significant reserve currency available.
- Canadian dollar (1 EUR = 1,55 CAD)
The sixth most traded currency globally, the Canadian dollar is also sensitive to the fluctuations of the US dollar, as most of the trade is with their southern neighbors.
On the other side of the list are the currencies with the worst value during this year, ranked starting by the weakest one.
- Venezuelan Bolivar (1 EUR = 590 223,95 VEF)
Arguably the cheapest currency globally, the Venezuelan bolivar reached record low values this year, despite being the country with the world’s most significant oil reserves.
- Iranian Rial (1 EUR = 49 147,06 IRR)
The Iranian Rial has been on a constant devaluation since 1979, with the Islamic revolution, leading to economic and political instability.
- Vietnamese dong (1 EUR = 27 057,22 VND)
With the third lowest value currency, Vietnam is still on the path from a centralized economy to a market one, which causes its currency to be significantly devalued.
4.Indonesian Rupiah (1 EUR = 17 245,08 IDR)
Indonesia is an economically stable and quite developed country in Southeast Asia. However, its money has a very low exchange rate. The country’s regulatory authorities are taking all measures to strengthen the national currency, but all their efforts led only to insignificant changes.
- Uzbek Sum (1 EUR = 12 111,53 UZS)
With an unstable developing economy, the Uzbek Sum is ranked 5th in the lowest valued currencies.
- Sierra Leonean Leone (1 EUR = 11 587,37 SLL)
Sierra Leone is a very underdeveloped African country, which handled many severe tests that caused the local money to devalue. Recently, a war took place there, and the deadly Ebola virus is recurrent.
- Guinean Franc (1 EUR = 11 457,83 GNF)
A high inflation rate, progressing poverty, and prospering gangsters devalued Guinea’s currency – the African country with one of the most inflated currencies.
- Lao Kip (1 EUR = 10 801,50 LAK)
The Lao is the only currency on this list, which did not devalue but was initially issued with a very low rate.
- Paraguayan Guarani (1 EUR = 8 210,06 PYG)
Paraguay is the second poorest South American country. It suffered a disastrous economic downturn, combining inflation, corruption, low education quality, an enormous number of poor people, high unemployment.
- Cambodian Riel (1 EUR = 4 744,24 KHR)
Initially, the Riel had a low exchange rate and was not popular among locals who had decided to use foreign currencies. Many Cambodians prefer to use the US dollar for payments now, which causes the local currency to devalue even more.
All this said, it is essential to notice that a currency’s strength in these terms is entirely relative. Some countries devalue their currencies to achieve better competitiveness in the markets, while others overvalue their money for political purposes. A “Strong” currency is not always equal to economic stability in a country, and a “Weak” currency is not always equivalent to the financial or political unrest of a nation.
— Fyggex (@fyggexchange) August 12, 2020
Image: 200 degrees
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