Financial security is critical to our daily and future lives – hence the need to save and learn how to utilize the limited finances we have at our disposal, even though we are tempted to spend them on the little pleasures, such as gaming, shopping, gambling, or fine dining.
With so many safe options promoted on all our devices every day, it’s hard to remain responsible and save up with every opportunity. But learning how to save money is a critical life lesson. Investing in foreign exchange is one way of diversifying your savings.
Why You Should Save in a Foreign Currency
Saving money in foreign currency involves taking some risks. The stability of certain currencies is the main reason for doing it. If you live in a country with an unstable or weak currency, exchanging and saving in a stable and more robust currency is a good move.
Which Are the Best Currencies For Saving Money?
US Dollar
Without including the US dollar, there is never a complete list of the best currencies to invest in. It is the most popular currency in the world and a safe bet for investors. Almost 90% of all Forex Transactions from 2019 were reported as transacted in USD. Therefore, saving your money in the US dollar is a brilliant idea.
The Euro
Another stable currency to consider in your investment options is the Euro which has an even higher value than the US dollar. The strong recovery of the European Union after the Covid-19 pandemic is among the reasons for the Euro’s strength. So when you are looking for foreign currencies to put your money into, Euro should be at the top of the list.
Japanese Yen
Japan’s inflation rates have remained low for long periods, making the Japanese Yen relatively stable and an excellent investment option. The currency is not pegged to the Euro or the US dollar, allowing it to retain its purchasing power even during crises.
The currency is used in numerous forex transactions due to Japan’s good trading relationship with other countries. This makes money highly liquid and a good investment option.
British Pound Sterling
The popularity of the British Sterling Pound has surged in the last decade and holds fourth place in the world’s currency reserves. The 2008 economic crisis affected its exchange rate less adversely compared to most major currencies.
However, the withdrawal of Britain from the European exchange dramatically lowered the exchange rate. The currency remains an excellent investment option for most people.
Swiss Franc
Another safe investment currency is the Swiss Franc. The reasons include high GDP, a stable market economy, the country’s measures supporting its local currency, a low unemployment rate, and a highly advanced banking system.
New Zealand Dollar
The government’s post-pandemic period has seen New Zealand’s economy rebound faster than most countries. Economic interventions made the country achieve so much in a short period of time that it raised the confidence of local and foreign investors in the country’s financial future.
The confidence is also replicated in its currency, making it one of the safest and strongest globally. The plan to raise interest aims to strengthen the New Zealand dollar further.
Singaporean Dollar
Another currency worth considering is the Singaporean dollar. The country is among the top business hubs in Asia and the world’s leading economic performer. The excellent performance has contributed to the strength and stability of its currency.
The country’s relaxed tax laws make it a favorite place to keep money without paying taxes. Therefore, saving your money in Singaporean dollars is a great idea.
Korean Won
South Korea is among the top manufacturing hubs, especially for high-value tech goods. Their products have gained a global audience and acceptance, raising trade activities using their currency.
The strong performance of the country’s businesses and its top ranking on the global stage have strengthened the Korean Won against other foreign currencies.
South Korea’s excellent fiscal standing is another reason for the stability and strength of its currency. The country’s average GDP of 3.3% can comfortably support its currency.
Norwegian Krone
Norway’s special reserve fund has helped the country to maintain a strong economy. The authorities borrow from Sweden and Switzerland to support the nation’s currency. However, the extreme dependence on oil exports casts doubts about investing in the currency.
What are the uses of these currencies?
- Placing online orders on stores and services from abroad
- Finding coupon codes inaccessible otherwise
- Gambling options that are strictly virtual
- Gaming options that come at a discount if you use a VPN
- Stock trading & investing
Summary
Saving your money in a foreign currency is a wise decision that protects the money from the effects of inflation. However, you should only invest in currencies regarded globally as safe options that show resilience to withstand internal and external economic crises.
About the Author/s
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
