Why a Stable Currency is Better than a Strong One
I think a stable currency is better than a strong one. When your money's value doesn't keep changing much, it's easy to plan out your life. Suppose you want to save money and buy a car. If the currency is stable, you know how much you need to save and how long it's going to take. But if the value of the currency keeps changing, it's hard to plan that way. One day your saved money is worth a lot, and the next day it might not mean much.
Take the country of Venezuela for example. The country has been experiencing hyperinflation where prices of commodities and services rise and reach all time highs every single day, almost literary. With a situation like this, it's hard to afford simple and essential goods like food and medicine because your money becomes less valuable in a very short time span. Contrarily, if we take the cases of nations having stable currencies such as Japan or Switzerland, people can better plan their finances because the value of their money stays the same.
A very strong currency may have a price angle that can make a nation's exports costlier and less competitive. The best example of a solid or strong currency is the United States Dollar (US Dollar). Should the US dollar be very strong, it means American goods are now way too expensive to the foreigners. This can worsen matters for the American establishments that depend on selling goods abroad. However, with a stable currency, firms can plan and price their offerings without wild or significant fluctuations which I think is more straightforward to trade in.
Stable currency also positively impacts tourism. As a tourist, traveling to a country with a stable currency eliminates the anxiety of the unknown, that at least the exchange rates will not change during your visit. It makes budgeting for your vacation much easier and predictable. That's going to allow more tourists attraction in a country.
Another good example would be small business owners. If you owned a small store, a stable currency would help you set prices and control costs without being anxious about unexpected changes. You'd be able to focus on serving your customers and expanding your business rather than fretting over money's changing value. Some customers complain a lot when the price of your goods go up suddenly. It in a way discourages them from buying more from you.
Just as there is a need for a strong currency to have prestige in the international arena, a stable currency is necessary for daily use. It allows people to save money thinking about making a judicious plan for using and taking care of money with confidence. It helps businesses to price their products fairly for global competition.
I'm sure some people would prefer a strong currency to a stable one. If you're in that category, let me know your reasons and we'll discuss.
Thanks for reading guys.
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