What makes a currency so powerful?

Question

Specifically why has the British Pound been significantly more valuable than the US dollar for decades? (At least since the 1950s)

Answer 1

domination in Goods and services market as well as financial market , political stability, economic stability , lower debt and high production , these are just few among many of the factors can appreciate any currency , however US is an exception , Us has no political and economic stability and has a very high debt ratio , but since the the dollarisation has been very string in international markets US can benefit allot of having a standard and always acceptable currency in international market and long as demand of US currency is high  us can maintain the high exchange rate compare to so many other countries.

Answer 2

deception

Currency isn't powerful. Humanity is weak. We need no money, as Christ will soon teach us. We need only love, concern and the yearning to serve.

Government is obsolete, as soon as we all learn these things.

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Answer 3

good economy....we dont agree

Answer 4

the value of a currency has little to do with it's power.  what makes a currency powerful is it's stability.  if the currency is known to be stable in value and the government controlling it is committed to keeping the value stable then the world of investment will flock to it.

Answer 5

The pound might have been more valuable but it hasn't been significantly more powerful.  The kuwaiti dollar is worth more than the U.S. dollar.

In 92' George Soros was able to force the Bank of England to devalue the pound just by shorting 10 billion pounds at a time when they were reluctant to adjust interest rates.  You don't ever hear about anyone doing that to the U.S. dollar.  The british import most everything into their country, so it makes sense to have a stronger currency.  Just like China wants a weak currency because they export so many things.   There's also historical competition between london and frankfurt for foreign exchange.