Even though most people see the forex (foreign exchange) market as a financial game played by banks, it can be a great way to diversify your portfolio. This market also provides opportunities for saving your monkey – you may save in some foreign currencies for great profit.
Having a fundamental knowledge about some of these foreign currencies will add to your arsenal as a portfolio manager, investor, or trader.
This article focuses on the top 5 foreign currencies that you can save money on.
The US Dollar
The United State Dollar looks like a nice deal right now. However, you shouldn’t forget that this currency is also used as a foreign reserve. Being the most traded currency in the world, you can save your money in the US Dollar.
The USD is used for most transactions because it maintains a stable market price. Also, most transactions online and in other markets are carried in the USD. The USD is a strong currency to save your money.
The Norwegian Krone
Norway has a stable economy. Its currency has been popular for being one of the safest in the world. One thing is responsible for this – Norway is a debt-free nation. It has no net debt.
Also, the Norwegian krone remains a standalone currency. The currency is not tied to the economic failure of another country. Recently, the Norwegian Krone isn’t doing well and its economic data can’t meet expectations. It’s also falling. This also slows down the consumers.
This currency is a good bet in the long haul; it only needs a disciplined and good system.
The Singapore Dollar
The Singapore dollar has been appealing to investors across the world. This is mainly because Singapore is presently considered to be a good spot to keep cash for tax reasons – it’s so low. There may be an opportunity here, yet this venture wouldn’t be founded on something sustainable. You still need to trade with caution.
The European Euro
The European Euro is also considered the US dollar’s nemesis. This currency is also great if you need to save your money. The national bank for this currency is the European Central Bank (ECN).
It’s currently the national bank of nineteen countries within the Eurozone. Just like the FOMC, the European Central Bank also has a principle body answerable for creating policy regarding financial decisions. The Executive Board has four members in addition to a president and a vice president.
The Swiss Franc
Referred to as the banker’s currency, the Swiss Franc is another formidable foreign currency. Unlike other financial regulators, the Swiss National Bank is privately and publicly owned.
The Swiss Franc compared to other currencies in the foreign exchange market is stable and has great potential. Also, the Swiss Franc is used as a federal reserve by a lot of countries.
The truth is there is nothing like a perfect currency. However, investing in any of these currencies is more likely to pay off in the long run. The Norwegian Krone seems to be the safest for now. Also, the Singapore dollar could offer you good rewards, you still need to consider its honest and sustainable policy. Finally, to get the best currency exchange rates, visit an FX online market to learn about the current exchange rates.