Topped by Arab countries.. Learn about the most expensive currencies in the world

[yota691]

Topped by Arab countries.. Learn about the most expensive currencies in the world

internationals

2022-07-13 | 02:51

 

 

Source:

Russia Today

 

3,912 views

 

 

The value of money can only be determined by comparison with the money of other countries, and in total, there are about 180 currencies in the world today. Which of them is the most expensive and most valuable?

Many people think that the dollar, the euro, or perhaps the pound sterling are the most valuable currencies, but this is not the case. For several years, the currencies of the Middle East countries occupy the leading positions in the list of the world's most valuable currencies.

 

 

In Kuwait, which is said to have one millionaire out of every fifteen of its citizens, the dinar, which was introduced into circulation in 1961, managed to displace the Indian rupee, which occupied a leading position in the Asian region. In 2006, Kuwait devalued its currency by 1% against the dollar, and because of that the exchange rate became 0.29 Kuwaiti dinars per dollar, but only one year later - in the middle of 2007 - the Kuwaiti dinar got rid of its peg to the dollar, replacing it with a basket of multiple currencies. Today, the Kuwaiti dinar is equal to 3.25 US dollars, to occupy the position of the most valuable currency in the world, according to the assessments of a number of research centers and international financial institutions.

 

In second place, comes the Bahraini dinar. It is remarkable that in the period 1966-1973, the Bahraini dinar was the national currency of the United Arab Emirates, and was later replaced by the Emirati dirham. The Bahraini dinar entered the market in 1965, replacing the Gulf rupee. In 1987, it was heavily pegged to the US dollar. Today, the price of one dinar is 2.65 dollars.

The third place is occupied by the Omani riyal, which is the official currency of the Sultanate of Oman. On one side of the note there is an inscription in English, and on the other in Arabic. There are no English inscriptions on the coins. 1 Omani Rial = $2.60.

Although the Jordanian economy is one of the poorest in the Middle East. The country has few natural resources, in addition to chronic problems with unemployment, inflation and foreign debt. However, the Jordanian dinar comes in fourth place in the list of the most expensive currencies in the world. The Jordanian dinar is linked to the Special Drawing Rights, which is the unit of account of the International Monetary Fund, which means the fact that it is linked to the US dollar. The value of one Jordanian dinar is 1.41 US dollars.

And only in fifth place comes the pound sterling, the official currency of Britain since 1694. In the eighteenth and nineteenth centuries, the pound sterling was the main reserve currency almost all over the world, but it lost its status as the most important currency after the end of World War II, when the currency began America is in control of the world market. Today, one pound sterling is equal to $1.20.

As for the euro, it comes in eighth place after the Cayman Islands dollar, which is worth 1.2 US dollars, and after the Swiss franc, which is worth 1.04 dollars. The euro is the official currency of the European Union, and 19 countries in the eurozone use it. It appeared in cashless circulation in 1999, and since 2002 banknotes and coins have been introduced. Today, one euro is equal to approximately $1.02. The same is true of the Swiss franc.

The US dollar, the most widely traded currency around the world, is ranked ninth in terms of its value among the world's currencies.

Although the price of the Russian ruble is much lower than the aforementioned currencies, the Russian ruble has become the best global currency to strengthen against the US dollar in 2022, according to Bloomberg. According to the agency, despite the unprecedented Western sanctions against Russia, the value of the ruble has increased by 11% since the beginning of the year.

[rvmydinar]

Will Iraq become the next one of the most expensive currency in the future after RV?

[jake21]

We can hope, but don't hold your breath.

[Half Crazy Runner]

3 hours ago, yota691 said:

Although the Jordanian economy is one of the poorest in the Middle East. The country has few natural resources …The value of one Jordanian dinar is 1.41 US dollars.

Interesting… 

[yota691]

 

Including Arab.. Foreign debt puts countries on the "edge of the abyss"

 

 2022-07-16 13:05

 

 

Shafaq News/ Economic analysts revealed, on Saturday, that some countries have reached the "edge of the abyss" and their economies are close to collapsing due to high borrowing costs, inflation and debt, estimating the volume of foreign debts at about 400 billion dollars.

The classic signs of debt crises of currency collapses, bond yields spreads of 1,000 basis points, and declining foreign-exchange reserves point to a record number of developing countries now in trouble.

Lebanon, Sri Lanka, Russia, Suriname and Zambia have already defaulted.

Belarus is on the brink and at least a dozen other countries are in the danger zone as rising borrowing costs, inflation and debt fuel fears of economic collapse.

Using 1,000 basis points of bond spreads, analysts estimate $400 billion in debt.

Argentina is the most indebted

Argentina has the largest amount of debt, amounting to more than 150 billion dollars, followed by Ecuador and Egypt, with debts ranging between 40 and 45 billion dollars, according to Reuters.

Crisis specialists hope that many countries will be able to avoid default, especially if global markets calm down and the International Monetary Fund intervenes to help.

The South American country that holds the world record for sovereign default is likely to add more debt to its balance sheet.

The Argentine peso is now trading at a discount of nearly 50% on the black market, reserves have fallen sharply and bonds are trading at just 20 cents to the dollar, less than half of what they were after the country's debt restructuring in 2020.

Ukraine

Investment banks including Morgan Stanley have warned that the Russia-Ukraine war means it will almost certainly be forced to restructure its more than $20 billion debt.

The crisis comes in September, when the $1.2 billion in bonds are due to be repaid.

Aid money and reserves mean Kyiv can repay, but with state-run Naftogaz this week calling for a two-year debt freeze, investors doubt the government will follow suit.

Tunisia

Africa has a handful of countries that use the International Monetary Fund, but Tunisia appears to be one of the most vulnerable.

With a budget deficit of nearly 10% and one of the highest public sector wage bills in the world, there are concerns that obtaining support from the International Monetary Fund, or at least committing to it, may be difficult due to President Kais Saied's bid to consolidate his grip on power.

Besides Ukraine and El Salvador, Tunisia ranks among the top three on Morgan Stanley's list of countries in default.

Tunisia is seeking to conclude an agreement with the International Monetary Fund soon, in light of ongoing negotiations between the two parties. "The agreement with the International Monetary Fund has become inevitable," said the Governor of the Central Bank of Tunisia, Marouane Abbasi.

Egypt

Egypt's debt-to-GDP ratio is around 95 percent, and is experiencing one of the largest foreign exchange outflows this year, estimated at about $11 billion according to JPMorgan Chase.

FIM Investment Partners estimates that Egypt will have $100 billion in hard currency debt over the next five years, including a massive $3.3 billion bond maturing in 2024.

Cairo devalued the pound by 15% and asked the International Monetary Fund for help in March, but bond yield spreads now exceed 1,200 basis points while the rate of default swaps, a tool for investors to hedge risk, is set at a 55% chance of default. reimbursement.

Ethiopia

Addis Ababa plans to be one of the first countries to obtain debt relief under the G20 Common Framework Program.

Progress in this area has been hampered by the country's ongoing civil war, although at the same time it continues to pay off its only $1 billion international bond.

 Pakistan

Pakistan struck a deal with the International Monetary Fund this week, a timely breakthrough as rising energy import prices pushed the country to the brink of a balance of payments crisis.

Foreign exchange reserves fell to $9.8 billion, barely enough for five weeks of imports.

The Pakistani rupee has plunged to record lows, and the new government needs to cut spending quickly as it spends 40% of its revenue to pay interest on debt.

[Officiallytook]

On 7/13/2022 at 10:33 AM, Half Crazy Runner said:

Interesting… 

Good eye, this is really interesting... Compared to these other countries Iraq should be top the list if not top 2/3