Dear Valued Client.
There has been allot of buzz of recent regarding what people are calling the safest currency in the world, The Norwegian Krone,
There are some very simple reasons why this currency has earned its self this title and has managed to climb to the top of the pile when it comes to a currency that people are eager to diversify into,
Before we have a look at these reasons let's look at what makes a safe currency safe,
Central Banks are the issuer of a nation’s currency and are the key to a safe, stable currency.
Central Banks at a balance sheet level operate just like a normal bank, they have assets and liabilities. Their assets consist of items like government bonds, and on the liability side the nation’s money supply i.e bank notes.
The capital ratio of the Central Bank is important when determining the strength of the currency they issue, a strong stable Central Bank will have high quality assets and the value of the assets should be well in excess of their liabilities.
The associated government also has an important part to play in the stability and strength of the Central Bank. Central Banks can run into issues when connected to a government that has a poor balance sheet or is heavily indebted. Central Banks when in financial trouble will look to the government for a bailout, a government which is also in poor financial condition may struggle to provide this assistance.
A number of currencies such as the US Dollar, Euro and Japanese Yen fail when using the above measure of safety however the Norwegian Krone stands tall for the following reasons,
Capital Security Bank offers easy access to the Norwegian Krone through our Cash Account for those looking to diversify their assets.
Both individuals and entities can apply for a CSB Cash Account.
For more information please visit our CSB Cash Account page via the below link,
Note: The above is not to be taken as financial advise. CSB recommends that you seek prior independent financial advice and consider carefully whether entering into specific foreign exchange transactions is appropriate in terms of your experience, financial objectives, needs and circumstances.
A Capital Security Bank cash account will give you access to 25+ different currencies, fixed deposits and world wide money transfers all under the umbrella of a single account number. Click the link below to find out more.