Countries – Capital, Currencies and Continent

Countries Capital and currencies is an important topic for competitive exams. It acts as the medium of exchange for products and services. It can be in paper form or in coin form. The government of a particular country is responsible for issuing currency for their nation.

The central bank then monitors the further distribution of this currency in the market. They ensure that there is a balance between the demand and the supply to maintain the GDP. poor management of currency distribution often leads to situations like inflation and deflation. 

The government has backup measures to curb them but it’s better to avoid them in the first place. The factor affecting them maybe – employment rate, forex, banking system, resources, and many more. They decide the value of the currency in the market.

The currency may be weak or strong depending on its USD value. This is because the USD is the reserve currency of the world and measures the other currencies. Different countries have different currency and some might have the same. Let us take a look at them.

List of top 10 Strongest Currencies of 2020

1. Kuwaiti Dinar 

It remains one of the most important currencies that stood against the UDS or Dollar. Kuwait is comparatively smaller in size but has a high number of resources and wealth. They facilitate oil export in the world at a large scale, justifying the wealth.

The country doesn’t have any tax system because of the strong economy. But they have a very low employment rate too. Their economy is a petroleum-based economy becoming very rich and wealthy in nature. 

1 KWD – 3.24 USD

2. Bahraini Dinar 

This is another wealthy country that exists in the world. It is largely due to black gold exports that go inside the country. That is their main source of income. Puritan Gulf Island of this country has 1 million population living in it. Their dollar rate has been the same since the year 2005.

1 BHD – 2.66 USD

3. Oman Rial

The reason why this currency is so high is because of its division into 1000 baisa. Most other countries divide their currencies into 100 units. And because oil is in USD, they get revenue in US dollars in high amounts that help to maintain high-value currency. It has the highest purchasing power. 

1 OMR – 2.60 USD

4. Jordanian Dinar

The Jordanian dinar is very strong, but with a weak national economy and has a low scale of exports. This is because of its high American dollar value for the last 20 years.  The dinar has the same strength as the American dollar. 

1 JOD – 1.41 USD

5. British Pound Sterling

Inflation plays a key role here. The pound is 1.2 times the US dollar approximately. Because Britain’s inflation rate is lower than in other countries, it has a higher purchasing power. This is one reason why the pound exchange rate is stronger. They also print their own currency which looks different from notes from England. 

1 GBP – 1.23 USD

6. Cayman Islands Dollar

It follows the world’s best tax and revenue system. This provides licenses to many financial institutions including banks and insurance companies. It remains the only country that has a stronger currency than the US. They keep around 100 cents of the amount in the US reserves to avoid price fluctuation. 

1 KYD – 1.22 USD

7. European Euro

It contributes to almost 22% of world savings. This is the second-largest currency. It has come to the list in recent years only with proper management. German is a euro country with the highest GDP as of 2020. 

1 EUR – 1.10 USD

8. Swiss Franc

It has a very stable position in the list mainly due to its great banking system. This system’s management remains a secret. Another reason is its higher-end technology innovations which further contribute to the GDP. 

1 CHF – 1.03 USD

9. US Dollar

It remains the World’s reserve currency due to the Brexton agreement. The US is the world’s economic leader with control across multiple countries. The British overseas territories are also using the dollar as their currency. 

1 USD – 0.91 EUR

10. Canadian Dollar

Canadian dollar exchange rate and oil prices decide the GDP of the country at the end of the financial year. The crude oil sales make up the foreign exchange income of the country. The fluctuating oil price impacts the currency as well. 

1 CAD – 0.72 USD

List of Countries, Capital and Currencies

Here is the list of countries with their capital and currency. 

Conclusion

This was the list of all the country capitals with their currency. It is an important topic for competitive exams. It can appear in the UPSC exam, RRB, SSC, State exams, and more. This is a general knowledge topic that the candidates must be familiar with.

It has a high chance of appearing in the general studies section of different exams. This is because of its importance in foreign exchange reserves and eventually the international relations of the country.

We have also added the list of strongest currencies of 2020 to make you aware of the current economic situation of the world. The currencies in the list almost remain the same for most years.