If asked what is the strongest currency in the world, I am sure most people will answer straight away American Dollar.
That answer sounded reasonable.
Dollars are used almost all over the world.
Many countries’ foreign exchange reserves are held in dollars.
Oil trade uses dollars.
Even when a global crisis occurred, many investors flocked to buy dollars.
So it’s natural that many people think the dollar is the strongest currency.
I used to think like that too.
Until finally I did research for the latest video.
And it turns out I discovered quite a surprising fact.
The dollar doesn’t even enter first place as the currency with the highest exchange rate in the world.
Not even Pound Sterling.
Who is it, then?
What’s even more interesting is that some of the currencies with the highest values actually come from countries whose populations are much smaller than the United States.
That’s where I started asking questions.
Are those countries really richer?
I’m curious about what Kaskus friends think.
If given the opportunity to save all your savings only in one fiat currencyOver the next 20 years, what will you choose?
US Dollar?
Swiss Franc?
Kuwaiti Dinar?
Euro?
Or do you still choose Rupiah?
More importantly, What is the reason behind that choice?
It’s interesting if we discuss it based on history and economics, not just because the exchange rate is the highest.
Is it because of the oil?
Is their central bank more powerful?
Or actually we have been misunderstanding the meaning of the word “strongest currency”?
The deeper I read, the more I realize that many people confuse three things that are actually different.
Exchange rate.
Economic strength.
The influence of currencies globally.
However, the three do not always go in the same direction.
A currency can have a very high exchange rate, but is not widely used in international trade.
On the other hand, there are currencies that have a lower value per unit, but which are the backbone of the world financial system.
In my opinion, this is the most interesting part.
Because it turns out that the numbers we see on the exchange rate board do not necessarily reflect the full economic strength of a country.
That’s the reason I made this video.
Not just making a ranking list of the most expensive currencies, but trying to explain Why This ranking could happen, what is its history, and what impact will it have on the world economy.
If you like the topic of economic history, money, monetary policy, or are curious about why there are currencies whose value is many times higher than the dollar, maybe this video can add a new perspective.
