What is currency?
A currency is an exchange method by which you can exchange goods. Currency is issued by the government.
Types of currencies
There are so many types of currencies. The basic form of currency is paper currency. But apart from paper currency or note, there are other currencies too, like coins, digital currencies such as bitcoin, ethereum, dogecoin, etc.
So in this article, you are gonna know the top five currencies which dominate the world.
1.The Kuwaiti Dinar - KWD currency
The Kuwaiti Dinar came into existence from the United Kingdom in 1961. At the moment, the Kuwaiti Dinar is the most powerful currency.
The main reason for the strong currency of Kuwait is the petroleum-based economy. Because Kuwait exports the resource to other countries.
1 KWD = 3.29 USD (at present).
2.Bahraini Dinar - BDH currency
Bahraini Dinar was introduced in around 1965 and at present is 2nd strongest current followed by Kuwaiti Dinar.
It is the world's second most powerful currency. It first appeared in 1965.
As Kuwait the Bahraini also the reason for the strong currency is the production of petroleum in Bahraini. Bharani also exports oil globally.
1 BHD = 2.65 USD (at present).
3.Omani Riya - OMR currency
Omani Riya is the 3rd strongest currency followed by Bahraini Dinar.
The Omani Riyal is introduced in 1973 in place of Rial Saidi. The Rial Saidi was also replaced by Gulf Rupee in 1970. The Omani Riyal is now the country's official currency.
The economy of Oman mostly depends upon oil exports.
At present,1 OMR = 2.60 USD.
4.The next one is Jordanian Dinar - JOD currency.
It is introduced in 1950.
Jordan exports chemicals, fertilizers, natural calcium phosphates, minerals to other countries, which makes the currency of Jordan strong.
1 JOD = 1.41 USD (at present)
5.Pound sterling - GBP currency.
The pound sterling is known to be the oldest currency in the world so far.
It is known that the British current is 1200 years old and it is introduced in the era of Roman.
The first coin ( pound ) was intrigued in around 1489.
At present the value of 1 GBP = 1.32 USD.
Now you must think that why all other currencies are compared to the US dollar, the reason is quite simple, reason is,
The Currency of the global currency. And it is widely accepted for trading all around the world. And some currencies are also accepted as international trading or international transaction and of course, the most famous one is the US dollar.
The other reason is that the global war affects all countries and, in that condition, the US is the only country that has a relatively high economy compare to the other country at the time of war.
The value of a currency depends upon several factors such as -
1.Imports
2.Exports
3.Inflation
4.Employment
5.Interest rates
6.Growth rate
7.Trade
8.Market equity
9.Foreign exchange
10.Investment
11.Capital banking
There are many other factors on which the economy of a country or currencies depends.
You must be logged in to post a comment.