TOP 10 - The Most Stable Currencies in the World in 2023
What does “stable money” mean? Simply put, a stable currency is the one, which holds its exchange rates, i.e. its rates do not fluctuate too much over time. So, most stable currencies aren’t necessarily the most powerful or expensive.
In one of our earlier articles we’ve described the top 10 most expensive currencies in the world, but our today’s list is going to be a bit different.
Let’s jump into it and see what currencies have turned out to be the most stable in 2023.
#1 – Swiss Franc
Currency code – CHF.
Swiss Franc rates:
1 CHF = 1.08 USD (Swiss Franc to US Dollar).
1 CHF = 1.02 EUR (Swiss Franc to Euro).
Starting off our list is the official currency of Switzerland and Liechtenstein.
With such a strong economy and a highly developed banking system in the country, Swiss franc was bound to become one of the most stable currencies in the world. Being tied to gold also adds to the status of a “safe currency”.
In addition, the country’s average annual inflation rate from the past years sits around 0,6%.
#2 – Japanese Yen
Currency code – JPY.
Japanese Yen rates:
1 JPY = 0.0074 USD (Japanese Yen to US Dollar).
1 JPY = 0.0069 EUR (Japanese Yen to Euro).
How did such a seemingly weak currency end up on our list? Let’s take a closer look.
Despite having the highest national debt in the world, Japan has managed to keep its inflation rates low for long periods of time.
Interestingly enough, the Japanese yen is the third most traded currency in the foreign exchange market, following the US dollar and Euro.
In addition, Japan holds the eighth place among the top ten countries with the largest gold reserves in the world.
#3 – Norwegian Krone
Currency code – NOK.
Norwegian Krone rates:
1 NOK = 0.094 USD (Norwegian Krone to US Dollar).
1 NOK = 0.088 EUR (Norwegian Krone to Euro).
Despite being far from an expensive currency, Norwegian Krone has earned its third place on our list of the most stable ones.
This is due to the fact that Norway is one of the very few countries in the world that doesn’t have net debt, i.e. it doesn’t need to borrow money to pay off its debt.
Another interesting fact about Norwegian krone is that it’s not pegged to any other currency. This hardly adds to the stability of the currency in a broad sense, but it shows the country’s course towards supporting its national currency and thus, strengthening it.
One more curious point about Norway is that it has significant oil reserves. However, this is a rather double-edged sword, since the same factor might cause unexpected currency fluctuations.
#4 – Swedish Krona
Currency code – SEK.
Swedish krona rates:
1 SEK = 0.093 USD (Swedish Krona to US Dollar).
1 SEK = 0.088 EUR (Swedish Krona to Euro).
One of the reasons why Swedish krona is maintaining its relative stability is the country’s policy that is aimed at the fundamental preservation of the currency exchange rate.
Curiously enough, even being a part of the European Union, Sweden has not abandoned its national currency in favour of the euro.
#5 – European Euro
Currency code – EUR.
European Euro rate:
1 EUR = 1.06 USD (European Euro to US Dollar).
Holding the second place as the reserve world currency (with the US dollar taking the first place), Euro is one of the world’s safest currencies.
Even though the Euro is also prone to fluctuations, the amounts of gold reserves in the EU zone and the currency’s impact on various industries and markets makes it stable.
#6 – Singapore Dollar
Currency code – SGD.
Singapore Dollar rates:
1 SGD = 0.74 USD (Singapore Dollar to US Dollar).
1 SGD = 0.69 EUR (Singapore Dollar to Euro).
The Singapore Dollar is currently holding the 13th place among the most traded currencies in the world and is considered one of the highest valued in the Asia-Pacific region.
The country has an interesting course towards maintaining the stability of its currency: the Monetary Authority of Singapore keeps an eye on the international currency exchange rates and intervenes to steer it into the right direction when necessary.
#7 – United States Dollar
Currency code – USD.
US Dollar rate:
1 USD = 0.94 EUR (US Dollar to Euro).
Even though the US dollar is the world reserve currency and it has never been devalued in its history, it still hasn’t made it to the very top of our today’s list. But why?
Being the most exchanged and popular currency in the world, US dollar hasn’t been backed by gold for quite a while now, i.e. there is not enough gold around the world to back every dollar. Surely, the gold standard has been mostly abandoned as the basis for a monetary system within a country, yet still many people argue that this is an important factor in identifying the stability of a currency.
#8 – Australian Dollar
Currency code – AUD.
Australian Dollar rates:
1 AUD = 0.66 USD (Australian Dollar to US Dollar).
1 AUD = 0.62 EUR (Australian Dollar to Euro).
The Australian Dollar is the national currency of Australia and its adjacent islands. The currency circulation covers a significant part of the globe, which has led to its popularity. At the same time, due to its geographical position, Australia is cut off from the large continents.
A stable government system and a low unemployment rate add to this currency’s strength and stability. The Reserve Bank of Australia plays the main part in this: it monitors the printing of new bills and their introduction into circulation when necessary.
The Australian dollar is also called a commodity currency, because Australia supplies large quantities of agricultural products, oil and raw materials for the chemical industry to the world market, and it’s more convenient to pay for goods with its national currency.
#9 – British Pound Sterling
Currency code – GBP.
British Pound Sterling rates:
1 GBP = 1.20 USD (British Pound Sterling to US Dollar).
1 GBP = 1.13 EUR (British Pound Sterling to Euro).
The official currency of Great Britain and Northern Ireland is considered to be rather stable.
Although many tourists believe that the exchange rate of the British pound is somewhat unfair and overpriced, others find this currency to be a great investment decision.
As of 2019, the British Pound Sterling holds the 4th place as the world reserve currency.
#10 – Canadian Dollar
Currency code – CAD.
Canadian Dollar rates:
1 CAD = 0.72 USD (Canadian Dollar to US Dollar).
1 CAD = 0.68 EUR (Canadian Dollar to Euro).
It is believed that the Canadian dollar is mostly affected by the American economy. This is due to its geographical proximity to the United States and large volumes of import from the neighbouring country.
As of the first quarter of 2021, the Canadian dollar has taken the 6th place as the reserve world currency.
Honorable Mentions – Potential Most Stable Currencies
Given all the rapid economic and political changes in the world, it’s tough to keep this current list the way it is. Some of the currencies didn’t even make it to our top ten. However they do have the potential to gain the status of the most stable currencies in the future.
New Zealand Dollar
Currency code – NZD.
New Zealand Dollar rates:
1 NZD = 0.61 USD (New Zealand Dollar to US Dollar).
1 NZD = 0.57 EUR (New Zealand Dollar to Euro).
This is the official currency of New Zealand. It is also accepted in the Cook Islands, which are an independent nation in free association with New Zealand.
Did you know?
New Zealand dollars are often referred to as "kiwi", since the one-dollar coins depict the kiwi bird, which is one of the national symbols of the country.
The New Zealand Dollar is one of the eight most popular currencies that are traded on the Forex market, which adds to its status as one of the world’s safest currencies. It is classified as a highly profitable commodity currency, so its changes are strongly correlated with gold and oil performance. Since Australia is New Zealand's largest trading partner, the Australian dollar has a great impact on this country’s currency.
Currency code – CZK.
Czech Koruna rates:
1 CZK = 0.04 USD (Czech Koruna to US Dollar).
1 CZK = 0.04 EUR (Czech Koruna to Euro).
With a stable GDP growth rate and low unemployment levels, the Czech Republic maintains a rather strong economy. All these factors, of course, add to the stability of its national currency.
Indeed, being part of the EU since 2004, the Czech Republic hasn’t adopted the euro. The Czech National Bank is responsible for the regulation of the country’s currency.
Currency code – DKK.
Danish Krone rates:
1 DKK = 0.14 USD (Danish Krone to US Dollar).
1 DKK = 0.13 EUR (Danish Krone to Euro).
Danish krone is the official currency of Denmark, including Greenland and the Faroe Islands.
Did you know?
Danish coins are in circulation in the Faroe Islands, but they have their own banknotes. Contrary to popular misconception, the Faroese krone is not an independent currency – it is a specially designed Danish krone.
Denmark is another member of the EU that still hasn’t adopted the euro and has preserved its own national currency. However, the Danish krone is closely pegged to the euro and the EU’s Exchange Rate Mechanism system.
The Danish central bank is focusing on supporting the national currency and many experts believe that the Danish krone is on the rise to claiming a status of a stable currency.
Most Stable Money in the World – Are They Real?
So, is there a safe currency? The short answer is… no. There are many factors that affect currency’s performance and it’s impossible to pick just one that defeats all others with great advantage on all accounts.
However, we live in a very fast-paced world and these are rather trying times, so the situation may change dramatically. Who knows, perhaps some day we will have just one currency that is stable enough to dispel all the doubts about which currency is the most reliable.
There’s no ultimate list of most stable or most powerful currencies (oh we wish!). Besides, you cannot base your investment decisions taking into account either currency strength or its stability alone. You’d have to consider a number of factors before investing in any currency. We have prepared an article to help you gain an understanding of the topic.