Hard currency.

Based on the properties of a monetary unit, one can always determine how well things are going in the state that issued it. One of these indicators is how hard the currency is.

Hard currency - or as it is also called “Strong Currency”, in this context they are talking about world currencies that can serve as a reliable and stable means of storing capital. Monetary units with similar characteristics have a stable exchange rate and purchasing power, and are in constant demand in almost every country in the world.

It is from these currencies that the reserves of the national banks of most powers are formed, which allows them to regulate the rates of their own monetary units.

Also, most rates of other monetary units are tied to this type of currency; it is in relation to them that the stability of national currencies is assessed.

A hard currency indicates the relative political stability of the country issuing this means of payment, although in recent years the situation has changed somewhat and the main indicator of hardness has become the liquidity (popularity) of the means of payment, and not the stability of its exchange rate or the provision of goods and services.

For example, the hardest currencies are the US dollar and the Euro, but what kind of stability can we talk about in relation to these monetary units?

The dollar has been on the verge of collapse for the past couple of years due to the exorbitantly increased foreign debt of the United States, and the Euro has been constantly in a fever amid reports of a deteriorating economic situation in the Eurozone countries. List of the Hardest currencies.

The American dollar is the hardest world currency, its share in the reserves of Central banks is about 62%.

The euro is in second place, gradually strengthening its position, its share in reserves is 24%.

British pound - this currency has stable demand, but its share in gold and foreign exchange reserves is only 4%.

The Japanese Yen has an unstable exchange rate, which is due to the policies of the Japanese government.

Share in reserves 4%. The Swiss franc has the most stable exchange rate, but low popularity, so it is preferred by only 0.3%.

You can find out the rate of most Hard currencies by looking at quotes on the Forex currency exchange .