Currently, the Peruvian Sol is the strongest currency in South America, followed by the Brazilian real. The monetary policies of their leaders helped the currencies attain their position on the exchange rate market on that continent.
The value of a country’s currency is very important. A financial or investment expert can use the value of the currency to know the level of stability of the country’s monetary policies.
No wonder, how a currency pair in the FX market is one of the things that attract or discourages foreign investors when choosing a destination to put their monies.
No investors want to invest or go into an economy where its currency is highly devalued and stumbled at the slightest economic shock.
There are some worthless currencies in South America, but the one highlighted in this article has shown resilience against the United States Dollar over time in the foreign exchange market.
What are the most valuable currencies in South America?
In this post, we put five of them in the spotlight against the USD: Sol, the legal tender in Peru; Peso (Argentina); Surinamese dollar; Boliviano (Bolivia); and the Real (Brazil).
Let’s see how the above five currencies fair against the USD
Peruvian Sol (no.1)
With the currency sign S/ and PEN as the code, sol which replaced the inti in 1991, is the most valuable currency on the South American continent.
One USD in Peru is 3.79 Sol
It is one of the currencies that have undergone several changes and modifications in name until the Peruvian Congress settles for sol on November 13, 2015.
Brazilian real (no.2)
The value of the Brazilian real greatly improved during the administration of Luiz Inácio Lula da Silva and Dilma Rousseff, which also impacted the country’s economy.
1USD is 5.16 real at the time of publication, making it occupy the second position on the table.
Most importantly, it must be pointed out that Brazil’s exports (soya beans and iron ore) were a dramatic change for the country’s foreign reserves and its currency.
Bolivian Boliviano (no.3)
One USD is 6.87 Boliviano, making it the third-strongest legal tender in South America. The country adopted Boliviano in 1987 to replace the peso.
Surinamese Dollar (no.4)
One of the countries on that continent is Suriname which uses the USD sign $, but most times, Sr$ is used to differentiate it from other dollar-denominated currencies.
Before Suriname adopted $ in January 1, 2004, Surinamese guilder used to be the legal tender. One United States Dollar in Suriname is 20.46 SRD
Argentine Peso (no.5)
The peso is also the legal tender in Argentina identified by the symbol $ preceding the amount in the same way as many countries. It uses the code ARS.
Inflation and erroneous monetary policy can be attributed as one of the reasons for the devaluation of its currency, reaching over 50 per cent in 2021.
1 USD is 107.40 ARS at the time of this update.
|Conversion using US dollar as the quote currency||Value in local currency||Position|
|1USD to Peruvian Sol||3.79 Sol||1|
|1USD to Brazilian real||Brazilian real||2|
|1USD to Bolivian Boliviano||6.87 Boliviano||3|
|1USD to Surinamese Dollar||20.46 SRD||4|
|1USD to Argentine Peso||107.40 ARS||5|