Question

Is it more beneficial for a country to have a strong national currency or to have a weak national currency?

-Please no plagiarizing and cite sources if needed :)

Answer 1

There's isn't a direct answer . But stonger currency is preferable.

Countries which have a negative net exports, i.e imports goods and services more than it exports. It is good to have a strong currency as cost of importing will be considerably lower. This is a reason why the US makes sure that USD keeps a high value among the currencies.

But, for exporting countries, like China. They deliberately decrease the value of their currency of the Chinese Renminbi, so it it can sell goods and services at a lower price than other countries.

What makes a stonger currency preferable is that often economically weak countries peg their currency with a stong currency to avoid hyperinflation . This is a hughe source of demand and economic power a counrtry may have over such economies.

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