The smallest currency in the world, the pound.
According to the foreign exchange quotation published by the Bank of China, the most valuable currency at present is British pound (selling price 1458.59), and the least valuable currency is Japanese yen (selling price 7.3593).
The most valuable currencies in history are some non-circulating collection currencies, which fluctuate greatly depending on the value at auction.
The most worthless currency in history is the currency circulating in some turbulent areas and areas where the government has basically lost its financial influence. For example, the currencies of Afghanistan and Iraq (before the war) depreciated sharply during the war. Before the financial reform, the former Iraqi dinar depreciated to the point where everyone traded by weighing piles of paper money.
Influencing factors of pound sterling
Bank of England (BOE): Bank of England. Since 1997, BOE has obtained the function of making its own monetary policy. The government takes the inflation target as the standard of price stability, generally measured by the retail price index (RPI-X) excluding mortgage loans, and the annual increase is controlled below 2.5%. Therefore, although monetary policy is formulated independently of government departments, BOE still has to meet the inflation standards set by the Ministry of Finance.
Monetary Policy Committee (MPC): Monetary Policy Committee. This Committee is mainly responsible for setting the interest rate level.
Interest rate: interest rate. The main interest rate of the central bank is the lowest lending rate (basic interest rate). In the first week of each month, the central bank will use interest rate adjustment to send a clear monetary policy signal to the market. Changes in interest rates usually have a greater impact on the pound. At the same time, JD.COM will also formulate monetary policy by adjusting the transaction interest rate of government bonds purchased from discount banks (designated financial institutions that trade money market instruments) every day.
Phnom Penh bond: Phnom Penh bond. British government bonds are also called gilt-edged bonds. Similarly, the spread between the yield of 10-year gilt bond and the yield of other countries' bonds or US Treasury bonds in the same period will also affect the exchange rate between the pound and other countries' currencies. 3-month Europound deposit: 3-month Europound deposit. Sterling deposits of non-British banks are called European sterling deposits. The difference between its interest rate and the European deposit rate of other countries in the same period is also one of the factors affecting the exchange rate.
Ministry of Finance: Ministry of Finance. Its function of formulating monetary policy gradually weakened from 1997. However, the Ministry of Finance still sets inflation targets for the Bank of England and decides on the appointment and dismissal of key personnel of the Bank of England.
The relationship between the pound and the European Economic and Monetary Union: The pound is often under pressure because of Prime Minister Tony Blair's remarks about the possibility of joining the single European currency, the euro. If Britain wants to join the euro zone, British interest rates must be reduced to euro interest rates. If the public votes to join the euro zone, the pound must depreciate against the euro for the development of domestic industrial trade. Therefore, any talk about the possibility of Britain joining the euro zone will depress the exchange rate of the pound.
Economic data: Economic data. The main economic data of Britain include: initial unemployment rate, initial unemployment rate, average income, retail price index without mortgage, retail sales, industrial production, GDP growth, purchasing managers' index, manufacturing and service industry survey, money supply (M4), income and house price balance.
3-month Europound futures contract (short-term pound): 3-month Europound deposit futures (short-term pound). The futures contract price reflects the market's expectation of the European pound deposit interest rate in three months. The price difference with other countries' futures contracts in the same period will also cause changes in the exchange rate of the pound.
Financial Times 100 index. Major British stock indexes. Unlike the United States and Japan, the British stock index has little influence on the currency. However, there is a strong correlation between the Financial Times index and the Dow Jones index.
Cross exchange rate effect: the influence of cross exchange rate. Cross exchange rate will also have an impact on the exchange rate of the pound.