Cash may not always be king in an ever-changing landscape of geopolitical tensions, where the value of a country’s money can plummet overnight. For example with the sudden war in Ukraine in 2022, when 1 SGD of its Ukrainian Hryvnia (UAH) went from 20.90 UAH to 26.32 UAH within days and kept decreasing in value. However, for countries that are thriving and have proven stable in the last few decades, strong currencies can attract foreign investments but are usually considered safe haven assets more than for investment purposes. So you can hold onto them like gold and they may appreciate in value over many years.
Our Singapore Dollar has a track record of being one of the world’s safest currencies too, and has consistently stayed strong. It was created in 1967 and valued at 2.08 USD in 1981. SGD has strengthened and come a long way to its current 1.34 USD valuation today. It fared best when the USD took plunges during the economic crisis of 2008 and again in August 2011 when stock markets fell due to the looming Europe debt crisis, achieving its all time best at 1.19 USD.
Here’s a list of 10 other most stable currencies in the world and its reasons for staying strong:
1) Kuwaiti Dinar
1 KWD = 4.40 SGD
The Dinar has not fluctuated much since back in 2006 when it cost SGD$4.49 with its latest valuation at SGD$4.38. It was created in 1961 to replace the Gulf Rupee. Despite Kuwait's tumultuous history of being invaded by Iraq in 1990, and its currency being replaced by Iraqi Dinar for some months, after the war it brought back its own currency.
2) Bahraini Dinar
1 BHD = 3.57 SGD
It is comparable to the Kuwaiti Dinar and was likewise created in 1964 to replace the Gulf Rupee, which at that time was the same value as the Indian Rupee. Bahrain's oil and gas industry and international tourism makes it a considerably high-income nation.
3) Omani Rial
1 OMR = 3.49 SGD
Oman’s surreal desert landscapes and cultural heritage makes it a charming tourist destination. The Rial currency was created in 1970 and was equal to the British Pound. Today it surpasses that due to its strong regulations of money and financial institutions.
4) Jordanian Dinar
1 JOD = 1.89 SGD
In 1950, Jordan broke away from the Palestinian Pound and created its own currency. It is tied to the US Dollar and thus does not fluctuate too much, remaining relatively stable. Despite being plagued by terrorism and Israeli invasion, its king in 1995 signed a peace treaty with Israel and garnered Palestinian autonomy, bringing the valuation of the Dinar to its current strength today.
5) British Pound
1 GBP = 1.73 SGD
The Pound was utilised in many countries which were under colonial rule. Its trade network in ages past, right up to its current economic stability and future rising inflation and interest rates will see the pound improve in valuation. Although Brexit from the European Union saw its Pound drop drastically, the Pound continues to remain steady overall.
6) Gibraltar Pound
1 GIP = 1.73 SGD
Tied to the British Pound, Gibraltar Pound was created in 1927 to replace the local Spanish coin. Gibraltar is south of Spain and is a small parcel of land with 38,000 people, considered to be a British Overseas Territory. Its strengths in port trades, tourism and e-gaming make it prosperous. Culturally and geographically it is still very much a part of Spain though.
7) Cayman Islands Dollar
1 KYD = 1.61 SGD
Replacing the Jamaican Dollar in 1972, the Cayman Islands Dollar was linked to the US Dollar at a fixed exchange rate, thus retaining its stability and valuation for decades. Ironically it is a British Overseas Territory also. Its Dollar stays strong because of low income tax but higher GST and therefore cost of living.
8) Swiss Franc
1 CHF = 1.52 SGD
This currency was created in 1850 probably to replace the barter trade. The Franc stays strong because of its low debt and massive gold reserves, and is considered a safe haven asset. Foreign investors flock there to hide their money sometimes due to its non-disclosure policies, in order to retain client confidentiality. Its low bank rates also contribute to the strength of the currency, though recently the Swiss Bank reduced its rates further, resulting in somewhat weaker Franc.
9) Euro
1 EUR = 1.46 SGD
It was created in 1999 to smoothen the exchange of currencies as the main currency amongst European nations. The Euro is stable and integrated the EU, replacing the European Currency Unit before it. While ideal for ease of investment and payment across borders, the European Union has its fair share of ups and downs through the decades though, nearing its own economic crisis in 2011 following the US's own in 2008, which led to declining faith among some countries resulting in one Brexit.
10) US Dollar
1 USD = 1.34 SGD
Made in 1792 to replace the Spanish Dollar of that era and region, the Dollar was first backed by gold since it was the only other precious metal it held that had much value. US devalued the US Dollar to gold ratio during the Great Depression, allowing people to sell their gold for more money. In 1971, when other countries were holding onto USD and wanted to pay for gold instead, but there was not enough gold to exchange for the USD, President Nixon officially removed USD from the gold exchange so it would no longer be backed by gold. Nonetheless, today, the country’s high interest rates and stability help it retain its strength (as well as its massive gold reserves).
With all these currencies that may increase in value long-term, it is prudent to store your physical money in a conducive, climate-controlled environment. Like currencies that grow, Vault@268 also puts continual care in fortifying its defences to ensure your valuables stay intact. Keep your investments and monies safe with our private vaults.
Learn more about our safe deposit box services through our website - vault268.com.sg.
Top 10 Strongest Currencies in the World
Cash may not always be king in an ever-changing landscape of geopolitical tensions, where the value of a country’s money can plummet overnight. For example with the sudden war in Ukraine in 2022, when 1 SGD of its Ukrainian Hryvnia (UAH) went from 20.90 UAH to 26.32 UAH within days and kept decreasing in value. However, for countries that are thriving and have proven stable in the last few decades, strong currencies can attract foreign investments but are usually considered safe haven assets more than for investment purposes. So you can hold onto them like gold and they may appreciate in value over many years.
Our Singapore Dollar has a track record of being one of the world’s safest currencies too, and has consistently stayed strong. It was created in 1967 and valued at 2.08 USD in 1981. SGD has strengthened and come a long way to its current 1.34 USD valuation today. It fared best when the USD took plunges during the economic crisis of 2008 and again in August 2011 when stock markets fell due to the looming Europe debt crisis, achieving its all time best at 1.19 USD.
Here’s a list of 10 other most stable currencies in the world and its reasons for staying strong:
1) Kuwaiti Dinar
1 KWD = 4.40 SGD
The Dinar has not fluctuated much since back in 2006 when it cost SGD$4.49 with its latest valuation at SGD$4.38. It was created in 1961 to replace the Gulf Rupee. Despite Kuwait's tumultuous history of being invaded by Iraq in 1990, and its currency being replaced by Iraqi Dinar for some months, after the war it brought back its own currency.
2) Bahraini Dinar
1 BHD = 3.57 SGD
It is comparable to the Kuwaiti Dinar and was likewise created in 1964 to replace the Gulf Rupee, which at that time was the same value as the Indian Rupee. Bahrain's oil and gas industry and international tourism makes it a considerably high-income nation.
3) Omani Rial
1 OMR = 3.49 SGD
Oman’s surreal desert landscapes and cultural heritage makes it a charming tourist destination. The Rial currency was created in 1970 and was equal to the British Pound. Today it surpasses that due to its strong regulations of money and financial institutions.
4) Jordanian Dinar
1 JOD = 1.89 SGD
In 1950, Jordan broke away from the Palestinian Pound and created its own currency. It is tied to the US Dollar and thus does not fluctuate too much, remaining relatively stable. Despite being plagued by terrorism and Israeli invasion, its king in 1995 signed a peace treaty with Israel and garnered Palestinian autonomy, bringing the valuation of the Dinar to its current strength today.
5) British Pound
1 GBP = 1.73 SGD
The Pound was utilised in many countries which were under colonial rule. Its trade network in ages past, right up to its current economic stability and future rising inflation and interest rates will see the pound improve in valuation. Although Brexit from the European Union saw its Pound drop drastically, the Pound continues to remain steady overall.
6) Gibraltar Pound
1 GIP = 1.73 SGD
Tied to the British Pound, Gibraltar Pound was created in 1927 to replace the local Spanish coin. Gibraltar is south of Spain and is a small parcel of land with 38,000 people, considered to be a British Overseas Territory. Its strengths in port trades, tourism and e-gaming make it prosperous. Culturally and geographically it is still very much a part of Spain though.
7) Cayman Islands Dollar
1 KYD = 1.61 SGD
Replacing the Jamaican Dollar in 1972, the Cayman Islands Dollar was linked to the US Dollar at a fixed exchange rate, thus retaining its stability and valuation for decades. Ironically it is a British Overseas Territory also. Its Dollar stays strong because of low income tax but higher GST and therefore cost of living.
8) Swiss Franc
1 CHF = 1.52 SGD
This currency was created in 1850 probably to replace the barter trade. The Franc stays strong because of its low debt and massive gold reserves, and is considered a safe haven asset. Foreign investors flock there to hide their money sometimes due to its non-disclosure policies, in order to retain client confidentiality. Its low bank rates also contribute to the strength of the currency, though recently the Swiss Bank reduced its rates further, resulting in somewhat weaker Franc.
9) Euro
1 EUR = 1.46 SGD
It was created in 1999 to smoothen the exchange of currencies as the main currency amongst European nations. The Euro is stable and integrated the EU, replacing the European Currency Unit before it. While ideal for ease of investment and payment across borders, the European Union has its fair share of ups and downs through the decades though, nearing its own economic crisis in 2011 following the US's own in 2008, which led to declining faith among some countries resulting in one Brexit.
10) US Dollar
1 USD = 1.34 SGD
Made in 1792 to replace the Spanish Dollar of that era and region, the Dollar was first backed by gold since it was the only other precious metal it held that had much value. US devalued the US Dollar to gold ratio during the Great Depression, allowing people to sell their gold for more money. In 1971, when other countries were holding onto USD and wanted to pay for gold instead, but there was not enough gold to exchange for the USD, President Nixon officially removed USD from the gold exchange so it would no longer be backed by gold. Nonetheless, today, the country’s high interest rates and stability help it retain its strength (as well as its massive gold reserves).
With all these currencies that may increase in value long-term, it is prudent to store your physical money in a conducive, climate-controlled environment. Like currencies that grow, Vault@268 also puts continual care in fortifying its defences to ensure your valuables stay intact. Keep your investments and monies safe with our private vaults.
Learn more about our safe deposit box services through our website - vault268.com.sg.
References:
https://wise.com/gb/blog/strongest-currencies-in-the-world
https://fxssi.com/best-currency-to-invest-in
Exchange rates are estimated based on 2 August 2024.