What is the best currency for savings?

Many people are looking outside of the normal realms of investment spheres for alternatives. This is more prevalent during extended durations of a lower value of the U.S. Dollar. Even though the U.S. Dollar is the international currency, with foreign reserves held by many countries, investors are not comfortable to sit around and wait for the dollar to be elevated out of the current weak state. Add to this equation the trade deficit and eyes are turning to other countries for potential investments.

Britain has the Sterling, which is really only around twelve percent of all foreign reserves in countries around the world. Investment strategists and advisors are counseling that there is an over evaluation of the British pound. If you believe the strategists, this isn’t the best currency for savings, at least for the present time.

The central banks of Europe were talking about changing their diversification strategy away from the U.S. Dollar. Due to the recent crisis in Greece, those talks have stopped. However, this does give rise to the question of whether the Euro is the best currency for savings. One of the positives on that side is that the Euro is shared by many countries and that offers a wider spread for downward trends. The Euro and U.S. Dollar remain the most popular currency worldwide.
The Japanese Yen has experienced problems for over fifteen years. They have been battling uphill far longer than a lot of the world. Many of the general populace, as well as businesses, are shifting their investments to Chinese stocks, U.S. Dollars and Brazilian bonds.

The jury is out on the Chinese Yuan. There is a fine dance going on between the intent on accusing China of currency manipulation and advancing positive relations between the U.S. and China. Some economists believe that China has been manipulating currency to counteract unfair trade advantages.

It seems that the Aussie Dollar is and has been a top investment selection for those interested in foreign currencies. They have maintained good gains over a consecutive twelve month period, which is better than any other currency. Their export-driven economy coupled with a good relationship with China has encouraged the continuance of a strong central bank. They are a commodity-based economy with an expected growth factor of over three percent. They continue to have an increase in their job market and their unemployment rate is half of what it is in the U.S.

Currently, the Canadian Dollar is close to par with the U.S. Dollar. While you might want to make some investments in Canadian stock, it’s not necessarily the time to invest in Canadian currency.

The overall and long term outlook for the best currency for savings seems to be the Aussie Dollar. The strength of their economy combined with the employment stability and growth makes this a choice to consider. They have a proven record of gains well over the twelve month benchmark and it looks like this will continue without any signs of change.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.