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Strong Currency

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Strong Currency
A currency whose value compared to other currencies is improving, as indicated by a decrease in the direct exchange rates for the currency.

Strong Currency
A currency when it is worth more relative to other currencies. Because most currencies are floating, their values vary according to market trends. When one unit of a currency trades for more units of another currency, it is known as a strong currency. When a currency is strong, travelers are able to go abroad while spending less of their money, but it makes exports more expensive in other countries. A strong currency can be disinflationary for currencies pegged to it. See also: Weak currency, Exchange rate.


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It is a matter of course that the country keeps its foreign exchange reserves in a strong currency.
It is a matter of course that the country keeps its foreign exchange reserves in a strong currency.
A corollary to a strong currency, in this case the United States dollar, is a low inflation rate.
 
 
 
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