Written by Reginald Chan on August 9, 2020

What Are the Most Profitable Currencies to Have in 2020?

Every New Year, currencies always compete for the top spot in trading and also in value. In 2020, the coronavirus pandemic has made central banks in several countries lower interest to reduce the chances of recession.

What does low interest mean? It means the currency loses its value. Investors are now in the run to get the best profitable currencies to trade with

Here is a top list of some of the best currencies to have in 2020:

US Dollar – USD

You can't mention a top currency without having a USD in mind. Being the strongest currency in 2019, chances are that it will maintain the most stable, most profitable currency to invest in. According to experts, the US is conducting its election this year. With both parties agreeing to have the most reliable money, it is the best moment for timing this currency.

The Dollar will increase in value and maybe overpriced due to the lackluster growth experienced by other countries in the world. Import tariffs also come into the picture with this higher pricing. While there might be depreciation and appreciation, the US dollar remains to be the most valuable currency to beat.

Pound Sterling – GBP

In 2019, most people thought the Pound Sterling would lose its value due to the Brexit issues. However, upon the election of Boris Johnson as the prime minister, the Pound has regained its strength, and it is still as profitable as ever. The Pound sterling has been keeping an exchange rate of 1.5 percent and 3 percent to the US dollar and the euro.

Its value is expected to rise due to trade talks. Experts are urging investors to trade now for maximum returns soon. However, the economy's growth will still determine its growth rate since there have been effects due to the global coronavirus pandemic. While other issues might make it lose its strength, economic growth and trade talks will make it shoot its value.

Euro – EUR

Issued by the European Central bank, this European Union's official currency is one of the most traded and most profitable currencies. The reason why it is the most traded currency is because of the economic growth of the region, the Eurozone, which has led to its increase.

Euro is the second reserve currency in the world, just after the US dollar, making it the most profitable currency to invest in 2020. Reasons for its growth include the political stability and growth of the region and also economic growth led by the Eurozone. Some of the factors that can slightly affect its growth include the GDP releases, EU elections, the country's election, the economic calendar, ECB meeting announcements, and the COVID-19 pandemic.

Japanese Yen – JPY

Japanese Yen is the country's national currency and is one of the main currencies traded in the world. When it comes to its trading volume, the Japanese Yen accounts for around the US $554 billion on average. Japanese Yen boasts of being the third-largest currency in the reserve value, taking almost 4.9% of the world reserve.

This currency is distributed and gets issued in Japan by the Bank of Japan. What determines the strength of this currency? Its strength is determined by the Japanese manufacturing industry, which is the main economic activity. It is widely known for exporting cars, machinery, electronics, ships, and much more.

An increase in demand for its products always increases the value of this currency, making it the most profitable currency to venture in 2020. Its value will only depreciate if some circumstances are not followed, which is rare. Such include losses in the market and also its competition with the Chinese currency, Chinese Renminbi. Japanese is also the largest importer of oil. This activity also determines the value of its currency, especially when there are price fluctuations.

Australian Dollar – AUD

This is the Australian commonwealth official currency, making it one of the world's most recognized currencies. It is the 5th most prominent and most popular currency in the world, in which investors should not shy from trading.

This currency boasts around 1.8% of the world's reserves and gets issued by the Reserve Bank of Australia. It is in the 6th position when it comes to the world's total reserves. What makes this currency strong is the economy and also prices of its commodities. What are these commodities?

It is well known that Australia deals with a lot of trade commodities, including iron, copper, and coal. Any increase in demand for these commodities will primarily increase their value in the market. Other factors that affect this currency include the country's liabilities and its Reserve Bank. 

Canadian Dollar – CAD

Canadian Dollar holds position six as the most traded currencies in the world. The Bank of Canada regulates its release and distribution. What is its value? Canadian Dollar accounts for almost US$166 billion of the daily trading volume and has a global reserve value of 2.02 percent.

What makes it stable and profitable? Canada is a major exporter of goods and services, including gold, iron, and automobiles. Prices in export determine the value of this currency. The country imports a lot from the USA, making it its principal trading partner since the USA buys most of its exports. This trading activity improves its strength day by day, making it one of the best profitable currencies in 2020.

Swiss Franc – CHF

Swiss Franc – CHF is Switzerland's official currency and holds number seven as the world's most traded currencies. Its daily trading share is approximately US$164 and has a global reserve of around 0.18%, becoming the 8th reserved currency globally.

Its growth and profits are considerable because Switzerland gets regarded as the country with secrecy in banking and financial services. Its exports also ensure this currency remains stable all year round, and the Eurozone market mostly determines it. This trading means the partners determine this currency growth.

Other currencies which we cannot forget into this list include; Chinese Renmimbi, Hong Kong Dollar, New Zealand, among others. The list has provided the most popular and the most profitable currencies you can invest in the year 2020.

There are many reasons why a currency depreciates or appreciates. It is mostly affected by economic activities, pandemics, political stability, and imports and exports. Next time while investing, look for these trends, and make a sound decision.

Article written by Reginald Chan
A meticulous entrepreneur by nature, Reginald is a sought-after success coach, digital marketing consultant and TEDx speaker from Asia. Currently, he teaches others how to make money online for free.

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