Finance, Forex and Investments

Why some of the "Third World Nations" have stronger currency compared to "Developing Countries"?

Some of the third world nations have a stronger currency than that of developing countries Given the fact that the standard of living, living conditions, GDP and economic growth rates are much lower than then the developing countries like China and India. I am looking for some statistical data and logical reasons to bolster this fact. Some of the third world nations have a stronger currency than that of developing countries Given the fact that the standard of living, living conditions, GDP and economic growth rates are much lower than then the developing countries like China and India. I am looking for some statistical data and logical reasons to bolster this fact.

Public Comments

1. i don't think your statement is true. Give me an example of a third world country with a stronger currency than a developing country?
2. You mean "Developed" Countries, not "Developing", correct? "Developing" and "third world" are essentially the same thing...although most of the terminology is a bit odd and vaguely insulting... You are not going to find much evidence of Developing countries have stronger currencies than Developed countries without stretching the meaing of "stronger" to meaninglessness or ignoring some rather important facts. The "King" currencies are the US Dollar (USD), the Euro (EUR), the British Pound (GPB), the Swiss Franc (CHF), and the Yen (YPN). Virtually all trade flows through these in one way or another. Combinations of these five currencies make up the lions share of all currency exchange (the actual movement of money between currencies). The Major currencies add Australian dollar (AUD), Canadian dollar (CAD), New Zealand dollar (NZD). 95% of all currency speculation occurs within combinations of these currencies and all major pairs in worldwide currency trade are limited combinations of these eight currencies. You, no doubt, have noticed that none of the currencies are developing country currencies. They are developed. In terms of raw economic power, you have your definition of strength in these eight. Everything else is relative (strength). Chinese Yuan (CNY) is essentially disqualified because it doesn't float freely (it is directly tied to the USD by the Chinese government). All major trade in CNY is effectively controlled by the national government. Indian Rupee (INR) floats in theory, but in practice the RBI manages the float against the USD, particularly in support of economic and trade goals. It more-or-less floats freely against the YPN and EUR. Depending on the (capitalistic vs socialistic) nature of future governments it is possible that the INR will be allowed to freely float against the USD at some point in the near future. The Brazilian Real (BRL) used to be tied directly to the USD. It now floats freely, but is largely considered a minor commodity currency. AUD, CAD, & NZD are the major commodity currencies.