What Is Strong Currency?
Sometimes referred to as hard currency, strong currency is any currency issued by a country that is traded on a global basis, and is considered to be stable and likely to retain or even increase in value over the foreseeable future. This higher level of stability leads to consistent performance on foreign exchange markets and increases the chances that companies located in other countries will accept the currency as payment. A shift in economic situations that affect the performance of the strong currency on the world market can be severe enough to cause the currency to lose its status, or actually cause the currency to become stronger and more desirable. Strong currency normally exhibits several specific characteristics. One has to do with the type of backing that the currency enjoys. Typically, many countries back their currencies with reserves of various types of precious metals. The political stability of the issuing nation is also key to whether or not a given currency is viewed a
