US dollar powerful currency in North America

5 Strongest Currencies in North America

Top US Trading Partners
Top US Trading Partners

Last updated on July 14th, 2022 at 10:08 pm

The US Dollars is the most important currency in the global market trade and of course, occupies number one among the strongest currencies in North America when exchanged against the Euro (EUR).

Strongest in this context means the value of a currency against one of its competitors in the foreign exchange market.

And the fact that a currency is strong doesn’t mean the issuer of such legal tender doesn’t have an internal economic and monetary challenge it is battling with.

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That said, it’s germane to point out that the United States and Canada are the most dominant economies in the North American countries.

In this article, we’re placing the EUR (World’s second most important currency in global trade) side by side with the US Dollar and the rest of the currencies on the continent.

Six of the 23 countries in North America: Grenada, Saint Lucia, Saint Kitts and Nevis, Antigua and Barbuda, Dominica, and Saint Vincent and the Grenadines use a ‘united’ currency Eastern Caribbean dollar (XCD). They are not excluded from this list but didn’t make the list.

So, what are the most valuable currencies in North America in terms of the exchange rate against the EUR?

United States Dollar (USD)

  • EUR to USD = 1.09 USD

On our no.1 spot is USD, the currency of the United States of America. According to BIS Triennial Central Bank Survey (released on September 16, 2019), the USD was and still is the “world’s dominant vehicle currency”, meaning it’s the most traded currency in the global trade

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At least 88 per cent of the global trades were transacted in the USD. Additionally, the USD is used as a means of payment in most African countries and other international trade.

Only the EU comes closer to using the relevance of a currency in global trade. The USD is able to maintain its grip on the number one position as the strongest currency in North America.

There is a slight margin between the EUR and the USD. 10,000 EUR will buy 10,876.50USD, that’s a difference of 876.50 on 10K

Panamanian Balboa (PAB)

  • EUR to PAB = 1.09 PAB
  • USD to PAB = 1 PAB

The official currency of Panama is balboa alongside the US dollar. According to a World Bank report, which understudies the economic recovery of the Latin American country from the COVID-19 pandemic, the country has rebounded with more than 15 per cent growth.

Panama’s major comparative advantage is its copper mining sector and manufacturing, thereby boosting the strength of balboa.

Bahamian Dollar

  • EUR to BSD = 1.09
  • USD to BSD = 1 BSD

Although Bahama is associated with tourism and financial services, the country’s currency is also receiving some boost from fruits exports, especially mango, pineapple and grapefruit among others.

B$ is mostly used to distinguish Bahama’s dollar from the US dollar. And it has the same strength as the USD within North America when exchanged with Euro.

Canadian Dollar (CAD)

  • USD to CAD = 1.26 CAD
  • EUR to CAD = 1.37 CAD

The sixth most traded currency in the global market is the Canadian dollar, thanks to its booming economy in mining, real estate and manufacturing.

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A productive economy like Canada which according to the Canadian Encyclopedia raked in $114 billion by exporting energy products and $93 billion from motor vehicles and motor vehicle parts in 2019.

The Canadian dollar is the fourth most powerful currency in North America in terms of the value against the EUR and USD and other major traded currencies around the world.

Belize Dollar (BZD)

  • EUR to BZD = 2.19
  • USD to BZD = 2.02

Officially, Belize dollar value is pegged at BZ$2 to US$1, but at the time of publication, the USD gained slightly against the BZD, partly because of its trade deficit.

Belize may not be as popular as Costa Rica in international politics, but the country’s currency is better in terms of value than Costa Rican colon, Jamaican dollar, and Haitian gourde which are the top three weakest currencies in North America.

Revenues from exporting sugar, citrus, and seafood are a boost for Belize’s economy and its currency.

Note: Foreign exchange isn’t stable. A lot of factors could cause a change in a currency’s value (gain or loss).

References:

  1. Featured image by pixabay
  2. Sebastian Leck. (February 7, 2006). “Exports from Canada“. The Canadian Encyclopedia, Retrieved April 9, 2022.
  3. BIS (September 16, 2019). “Triennial Central Bank Survey”. bis.org. Retrieved April 9, 2022

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