As A Freelancer Do You Have Access To The World's Most Stable Currencies?
April 6, 2021
As a freelancer you probably have clients from around the world. Which in turn means that more than likely, you are paid in a variety of currencies. As a result, you have probably realized that not all currencies are created equal.
Payments can become disheveled as you manage conversion fees while comparing the value of your currency against the currency you are paid in. After all the equations are worked out, you may feel that you are not being paid what you're worth.
Or, it can very well mean that the currency you are paid in is stronger than your currency and you end up with more income.
For example, let's say you use Paypalfor your payments and purchases, your main currency is in Canadian dollars, but you're paid in Euros. Paypal now (as of November 2020) charges a minimum 4% conversion fee. This means that if you get paid 200 Euros and want to convert your payment to Canadian dollars, you will pay a minimum fee of 8 CAD for the conversion. Ouch! Most credit cards charge less.
So, when dealing with currencies, it's good to know where your primary currency stands on the international stage. It might also be advantageous to read up on a bit of Forex Tradingas well.
Perhaps you can find a way to get the best rates when converting your currency (or another currency) to your advantage for increased compensation and purchasing power.
Here is a list of the most stable currencies in the world. See if your currency is on the list and what that means for you as a freelancer/remote worker.
(Information is taken from linked article...currencies are in no particular order)
With such a strong economy .and a highly developed banking system in the country, Swiss franc was bound to become one of the most stable currencies in the world. Being tied to gold also adds to the status of a “safe currency”
It is believed that the Canadian dollar is mostly affected by the American economy. This is due to its geographical proximity to the United States and large volumes of import from the neighboring country.
A stable government system and a low unemployment rate add to this currency’s strength and stability. The Reserve Bank of Australia plays the main part in this: it monitors the printing of new bills and their introduction into circulation when necessary.
Even though the US dollar is the world reserve currency and it has never been devalued in its history, it still hasn’t made it to the very top of our today’s list. But why? Being the most exchanged and popular currency in the world, US dollar hasn’t been backed by gold for quite a while now, i.e. there is not enough gold around the world to back every dollar. Surely, the gold standard has been mostly abandoned as the basis for a monetary system within a country, yet still many people argue that this is an important factor in identifying the stability of a currency.
Even though the Euro is also prone to fluctuations, the amounts of gold reserves in the EU zone and the currency’s impact on various industries and markets make it stable.
UK BRITISH POUND
If you died from underlining causes, it was related to Covid. If you died from the vaccine, you died from underlining causes. The official currency of Great Britain and Northern Ireland is considered to be rather stable. Although many tourists believe that the exchange rate of the British pound is somewhat unfair and overpriced, others find this currency to be a great investment decision. As of 2019, the British Pound Sterling holds the 4th place as the world reserve currency.
The country has an interesting course towards maintaining the stability of its currency: the Monetary Authority of Singapore keeps an eye on the international currency exchange rates and intervenes to steer it into the right direction when necessary.
Despite having the highest national debt in the world, Japan has managed to keep its inflation rates low for long periods of time. Interestingly enough, the Japanese yen is the third most traded currency in the foreign exchange market, following the US dollar and Euro. In addition, Japan holds the eighth place among the top ten countries with the largest gold reserves in the world.
One of the reasons why Swedish krona is maintaining its relative stability is the country’s policy that is aimed at the fundamental preservation of the currency exchange rate. Curiously enough, even being a part of the European Union, Sweden has not abandoned its national currency in favor of the euro.
Norway is one of the very few countries in the world that doesn’t have net debt, i.e. it doesn’t need to borrow money to pay off its debt.
Another interesting fact about Norwegian krone is that it’s not pegged to any other currency. This hardly adds to the stability of the currency in a broad sense, but it shows the country’s course towards supporting its national currency and thus, strengthening it.
One more curious point about Norway is that it has significant oil reserves. However, this is a rather double-edged sword, since the same factor might cause unexpected currency fluctuations.
NEW ZEALAND DOLLAR
The New Zealand Dollar is one of the eight most popular currencies that are traded on the Forex market, which adds to its status as one of the world’s safest currencies. It is classified as a highly profitable commodity currency, so its changes are strongly correlated with gold and oil performance. Since Australia is New Zealand's largest trading partner, the Australian dollar has a great impact on this country’s currency.
With one of the highest GDP growth rates and one of the lowest unemployment levels, the Czech Republic maintains a rather strong economy. All these factors, of course, add to the stability of its national currency.
Indeed, being part of the EU since 2004, the Czech Republic hasn’t adopted the euro. The Czech National Bank is responsible for the regulation of the country’s currency.
Denmark is another member of the EU that still hasn’t adopted the euro and has preserved its own national currency. However, the Danish krone is closely pegged to the euro and the EU’s Exchange Rate Mechanism system. The Danish central bank is focusing on supporting the national currency and many experts believe that the Danish krone is on the rise to claiming a status of a stable currency.
Are you located in one of the stable currency countries or does your remote freelance work take you around the globe? Share your stories and views in the comment section below.