In different countries, people use different monetary currencies. In Russia, it is customary to pay in rubles, in the United States in dollars, in China in yuan. All these currencies have different values and degrees of reliability. Which one is recognized as the most reliable in the world?
The national currency in many countries of the world is issued by the central bank. The criteria for the reliability of a particular currency are the following factors: capital adequacy of the country's central bank and government balance sheet.
Capital adequacy of the country's central bank
This indicator is defined as the ratio between the liabilities and assets of banks; accordingly, the currency issued by a bank with a high level of capital adequacy will be considered more reliable.
Government balance
When assessing the reliability of a currency, it is worth taking into account the state of the balance sheet of the government of a given country. The absence of government debt to the population testifies to the relative reliability of the currency.
At the moment, the most reliable currencies in the world, perhaps, most people consider the US dollar, euro and British pound, because they prefer to keep their savings in these currencies, this opinion is erroneous, since the two indicators mentioned above for these currencies are at a critical level.
The safest currency
The Norwegian krone has been recognized by the world's best analysts as the most reliable currency among all freely convertible ones. However, the Norwegian krone earned such a reputation back in the early 19th century. There are many reasons for the success of the currency of this northern country.
The level of sufficiency of the central bank of Norway is 23.3%, it was achieved through special funds formed thanks to the active export of oil and gas.
The total financial assets of the Norwegian government significantly exceed its debt. In addition, Norway refused to participate in various associations, including the EU, so the country will never face the need to pay someone else's debts, as, for example, happened in the case of Luxembourg and Greece. The Norwegian krone is not pegged to other currencies in the world, so it is theoretically insured against a crisis that could overtake them.
The Norwegian krone banknote is unrealistic to counterfeit, it is equipped with the world's best security system, and coins are minted only from precious metals.
Following the Norwegian krone, the Swedish krona, British pound sterling, US dollar, Swiss franc, euro, Japanese yen, Australian and Canadian dollars, Chinese yuan are located in the ranking of reliable currencies.
