Currency Worth

Atualizado: 28 de set.

Having money in your wallet is a sign of affluence these days, as inflation is spiraling out of control, many people are using credit cards to pay, and recessions are forming. The National Bureau of Economic Research note that the last recession on record in the U.S. took place from February 2020 through April 2020. Shares values are currently down, cryptocurrency recently collapsed, and world leaders are playing a balancing act for power.

Tough times are ahead of us, so every penny spent means less reserves for the slump which will ultimately worsen. Known as the strongest worldwide currency, the Kuwaiti dinar or KWD was introduced in 1960. At that time, it was equivalent to one UK sterling pound.

Kuwait is a small country that is nestled between Iraq and Saudi Arabia, whose wealth has been driven largely by its global exports of oil. A US dollar will exchange for around 0.31 Kuwait dinar in exchange, making it the world’s strongest currency per face value.

The foreign exchange (forex) was based on who held most of the world's gold supply. The gold-backed dollar was relatively stable, so it was agreed that the US dollar would be the official reserve currency. Thus, allowing other countries to back their currencies with dollars rather than gold. The UK’s sterling pound is ranked 5th on the world scene.

The Great British Pound, the pound sterling, or GBP is the fifth most valuable currency in the world. Although the GBP is not the most powerful in the world, it does hold the title as the oldest currency still in use. It’s the fourth most traded globally, and accounts for around 12.8% of daily trades on the foreign exchange market. Currently when exchanging a single US dollar, you will receive approximately 0.83 GBP in return. This forex pair is commonly known as “the cable” and is the 3rd most traded in the world.

One of the newest currencies, the EURO (€) or EUR is the official currency of 19 out of 27 EU member countries which together constitute the Eurozone, officially called the euro area. It is the second most traded on the foreign exchange market, only preceded by the US dollar. In exchange for one US dollar, you will receive approximately 0.98 Euro today.

The US dollar belongs to the United States of America and several other countries. It is the world’s primary reserve currency and is held by most central banks and commercial banks globally. Because of its widespread adoption, the US dollar also accounts for around 88.3% of daily trades in the foreign exchange market. The USA is the richest country in the world, but only comes 10th when ranked as a contender for the world’s highest currency.

The real is the legal tender in Brazil since 1994 and is currently the strongest currency in the whole of Latin America. This currency has suffered many changes due to the economic crises that the country has undergone.

Take care!

Prof. Carl Boniface

Vocabulary builder:

Slump (n) = recession, fall, crash, nosedive, decline, drop, plunge, depression, decrease, (ant) rise

Stable (adj) = steady, unchanging, even, unwavering, constant, secure

Currencies (n) =moneys, monies, cash, notes, coins, bills, exchanges

Forex (n) = means foreign exchange, i.e., FOR + EX

The cable (n) = for connecting electricity while the term is used among forex traders. "Cable" is a slang term for the exchange rate between the U.S. dollar (USD) and the British pound sterling (GBP). It can also refer to the British pound sterling.

Reserve currency = is a large amount of currency held by central banks and major financial institutions to use for international transactions. A reserve currency reduces exchange rate risk since there's no need for a country to exchange its currency for the reserve currency to do trade.

Undergone (v) = experienced, felt, suffered, endured, undertaken, gone through, (ant) avoided

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