World reserve currencies are ... How many reserve currencies are there in the world?

It's no secret that in today's world, money has a weighty significance. What is happening today with the Russian economy is directly related not only to the cost of oil, the situation in Ukraine, but also to the financial market. World reserve currencies are, first of all, some kind of security island where Russian citizens feel somewhat more reliable. The ruble was always considered not very stable, but at the same time it occupied a well-deserved place in the financial market. Unfortunately, due to the fact that the national ruble has been very insecure of late lately, many chose the world's reserve currencies to save their savings. What money can be fully considered such? After all, the financial market has a lot of various monetary units, which can be considered quite reliable. How many reserve currencies in the world? And why they were chosen as a kind of "shelter"?

What is a reserve currency?

The modern business society under the concept of a world reserve currency understands the monetary unit that is required by banks of other states to create a certain foreign exchange stock. First of all, it is used as a tool for trade between different countries. And also applies in the role of international assets, establishing a strong relationship between the two leading currencies. Often this term is used to refer to monetary units when calculating a bank with certain organizations. Previously, such currencies were used to calculate gold and oil markets, thereby determining the value of these resources. Today, they are used mainly to accumulate gold and foreign currency reserves, and also strengthen the opportunities for export competition by weakening their own currency.

World reserve currencies are a kind of "safety cushion" in case of financial instability. But initially it is worth noting that such cash reserves serve as a safety net in the event of a financial crisis. It is not a secret that the world's reserve currencies contribute to the weakening of the national monetary unit. Which ones - we will consider further.

How many reserve currencies in the world?

It has long been known that any currency can be a reserve currency. For this, only economic stability in its state is needed, as well as the absence of revolutions and other upheavals. But even if the currency is stable, involved in world trade and has a developed financial market, this does not mean that it has the status of a reserve unit. After all, this status is acquired only after the leading banks of other countries start applying them for the preservation of their own reserves. So it turns out that the world's reserve currencies are monetary units that fulfill the function of an investment asset. Currently, several currencies are considered reserve money. First of all, this is, of course, the US dollar (USD) and such as the euro currency (EUR), the Japanese yen (JPY), the British pound sterling (GBP), the Swiss franc (CHF), and several others. These monetary units are in the assets of most states.

Reserve currency is the dollar (USD)

The dollar appeared as far back as 1861. Then, at the request of the congress, about 57 million banknotes were printed. Although the official birthday of the dollar is still considered to be July 6, 1785. It was on this day that he was officially registered. It is believed that it is the dollar - the world reserve currency №1. After all, during the last decade more than 50% of the total gold and foreign exchange reserves of all countries of the world were calculated precisely in this monetary unit. Why is the dollar the world's settlement and reserve currency? In order to answer this question, you need to plunge into history.

When the aftermath of the Second World War was already clear, it became clear that it was necessary to take drastic measures. So, at the next congress the uniform price for 1 troy ounce of oil at a rate of $ 35 was accepted. And by doing so, the countries recognized the US dollar as a single settlement and reserve currency. As you know, during the war, America's economy suffered the least, and the US gold reserve was huge. In addition, the United States possessed a powerful industry. This was due primarily to the fact that countries in the trading market often wanted to buy something in return. This allowed the US not only to look like a leader in the global market, but also to strengthen the country's economy as a whole. Not surprisingly, at that time, countries needed to be more involved in export, because such a strategy allowed them to accumulate gold and currency. So it turned out that the US, while exporting its own currency, received the status of the most stable country, and the dollar took a leadership position and a high rank.

Euro (EUR) as the world reserve currency

The history of this monetary unit originates in 1995. It was in this year in Madrid that the EU decided to "baptize" the future common currency of eleven states - the "euro." Although the development of the project of the European monetary unit began in 1979. This idea was truly grandiose. After all, earlier all attempts to create a financial union ended in disastrous results. Just like the dollar, the euro has a lot of support from other states, which gives it the opportunity to become the leading currency for the formation of exchange rates. But the fact that the members of the Union of Europe support this money symbol also has some negative impact, connected with the irregular development of these states. Analysts believe that soon, due to the fact that the internationalization of the euro gave impetus to the formation of a bipolar world monetary and financial system, it will affect the dollar and the dollar in different zones and territories. The euro is likely to remain within Eastern and Central Europe, and the dollar will dominate within South and East Asia, as well as Latin America. But today we can safely say that these are the two most powerful global reserve currencies.

The Japanese Yen (JPY) is an honorable third place

Previously, the Japanese yen was considered one of the most powerful currency-shelters. But over the past few years, its popularity has definitely declined. And today this monetary unit occupies only the third place in the financial market. The yen was created in 1871, although there were other gold, silver and paper money in parallel. Well, the international title comes to it on May 11, 1953, exactly when the International Monetary Fund legalized its ratio with gold weighing 2.5 milligrams.

Of course, its volume in the modern financial market is significantly inferior to the leading dollar and euro. But this does not prevent the Japanese yen from taking an honorable third place among the world's reserve currencies. This monetary unit differs from its competitors in a sufficiently high round-the-clock liquidity around the world. And despite their positions among the leaders, the yen is irreplaceable in the international financial markets.

World currency pound sterling (GBP)

The pound sterling is a fairly well-traded currency in the world. That is why it ranks fourth in the level of trust among citizens of the whole Earth. For the first time the concept of "pound sterling" appeared in 1694. And in the period from 1821 to 1914, this monetary unit was considered the main reserve currency in the financial market. Unfortunately, after World War II Great Britain has weakened considerably. This gave the US the opportunity to become a leader in a sense, and to replace the dollar with the pound sterling.

The appearance of the euro in the financial market also had a significant impact on this currency. After all, before the EU decided to create a single European national monetary unit, the pound sterling benefited from all sorts of rumors about the convergence of the exchange rate. And if the results of the referendum in the UK were positive, the pound would join the euro back in 2000. The world market is almost 14% consists of pounds sterling. And this is a very good result.

Stable Swiss franc (CHF)

For the first time this currency started talking back in 1850. At its face value, this monetary unit was equated with the French franc. The main advantage of this currency is that it is practically the most stable in the world. For the whole history, the devaluation of the franc has been fixed only a few times. Thanks to this, he enjoys high confidence among citizens of the whole world.

Traditionally, the Swiss franc is referred to the monetary units of low-tax zones with zero inflation. As a reserve currency, it was fixed in fourth place. And although it represents the only monetary unit that is not part of the EU and the G-7 countries, and its share practically never rises above 0.3%, it, due to its "eternal" stability, never loses its positions in the world market . Although with the introduction of the European single currency, the constancy and unchanged course of the Swiss franc has been somewhat diminished.

Ruble and RMB as reserve currencies

All world reserve currencies today took their well-deserved places. And if several years ago, in 2007, the government of the Russian Federation declared that the ruble could safely enter the world export, then after all the crises that had been experienced it became practically impossible. That is why most analysts concluded that the ruble in the near future will not be able to take its place among the safe haven currencies.

The same, in principle, can not be said about the Chinese yuan. The world reserve currency, as you know, must have a "set of leadership qualities." Today, China is doing its best to make its national currency strengthen and grow. And, according to leading experts, this is not bad for him. After all, according to data for 2014, it was this currency that became one of 10 actively traded, ahead of 22 "enemy" in the last three years. Work in the offshore market also in recent years is not standing still, and at the end of March 2014 Germany agreed with China on cooperation in clearing, as well as on the calculations in RMB. In addition, the stock exchanges in Hong Kong and Shanghai opened the mechanism of cross-selling, gold in China's reserves increased significantly, and 40 world banks made investments in the Chinese monetary unit. All this leads to the fact that in a few years the yuan will take the leader's honorary place as the reserve currency No. 1 in the world.

Forecast for 2015

It is difficult to guess what the world monetary system will be in the coming years. In connection with the current crisis caused by a sharp decline in the cost of oil, it is difficult to imagine what the financial world is waiting for. The ruble failed, but today Russia together with China is doing everything possible to minimize the influence of the American currency on the world financial market. And no matter how sad it may sound for the United States, the yuan is guaranteed the future of the reserve currency in any case. After all, not only experts say this, but also data on the study of the world's currency markets over the past few years. Podnebesnaya has long proved its worth as a major trading force and the strongest exporter with the second largest economy in the world. And many experts claim that in 10 years the yuan will achieve its goals. In addition, China is already making sure steps to this. And, as you know, the world's reserve currencies are currencies of those countries that have gone through a difficult path!