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November 13, 2009

Expansion of Global Currencies
by Mike Hewitt

The expansion of global currencies has exceeded nine percent over the last year.

This essay investigates which currencies are contributing the most to this development. One hundred currencies from 95 sovereign nations and five monetary unions have been examined.

The following pie chart shows the relative value of global currencies (M0) when converted to USD for means of comparison.

The Euro, US Dollar, Japanese Yen and Chinese Renminbi (Yuan) make up nearly three-quarters of the value of all circulating currency. While smaller currencies may be increasing at a faster rate, even minor percentage increases in any of these dominant currencies significantly changes the overall global totals, as evidenced by comparing the two tables below:

Twenty Fastest Growing Currencies in Relative Terms

Rank	Country	Currency Code	Y-O-Y Increase in M0			Date	XRATE
Rank	Country	Currency Code	Billions	%	US$ Billions	Date	XRATE
1	Iran	IRR	77855.0	97.4%	8.2	Mar-09	0.00010
2	Iceland	ISK	7.4	58.7%	0.1	Aug-09	0.00826
3	Angola	AON	46.6	47.1%	0.6	Apr-09	0.01337
4	Tajikistan	TJS	0.4	37.9%	0.1	Jul-09	0.22780
5	Iraq	IQD	5182.2	35.1%	4.5	Feb-09	0.00088
6	Venezuela	VEF	4.4	29.6%	2.1	Aug-09	0.46680
7	UAE	AED	7.7	26.5%	2.1	Mar-09	0.27230
8	Albania	ALL	40.9	26.4%	0.5	Dec-08	0.01164
9	Israel	ILS	6.9	25.1%	1.8	Aug-09	0.26240
10	Lebanon	LBP	453.2	24.7%	0.3	Aug-09	0.00068
11	Sudan	SDG	1.2	21.8%	0.5	Mar-09	0.44180
12	Turkey	TRY	5.9	21.0%	3.9	Aug-09	0.67420
13	Azerbaijan	AZN	0.6	20.8%	0.7	Mar-09	1.24560
14	Algeria	DZD	277.3	20.6%	3.8	Mar-09	0.01354
15	Tanzania	TZS	225.8	19.8%	0.2	Mar-09	0.00077
16	Libya	LYD	1.0	19.3%	0.4	Jul-09	0.82450
17	Suriname	SRD	0.1	18.8%	0.0	Jun-09	0.37040
18	Indonesia	INR	1093.6	18.6%	22.6	Aug-09	0.02070
19	Pakistan	PKR	176.2	17.3%	2.1	Aug-09	0.01208
20	Philippines	PHP	62.5	16.3%	1.3	Jun-09	0.02079

Twenty Fastest Growing Currencies in Terms of US Dollars

Rank	Country	Currency Code	Y-O-Y Increase in M0			Date	XRATE
Rank	Country	Currency Code	Billions	%	US$ Billions	Date	XRATE
1	EU	EUR	87.9	13.4%	125.7	Aug-09	1.43080
2	US	USD	81.4	10.5%	81.4	Aug-09	1.00000
3	China	CNY	355.5	11.5%	52.1	Aug-09	0.14660
4	India	INR	1093.6	18.6%	22.6	Aug-09	0.02070
5	Iran	IRR	77855.0	97.4%	8.2	Aug-09	0.00010
6	UK	GBP	4.2	8.4%	6.8	Mar-09	1.62750
7	Japan	JPY	551.6	0.8%	5.9	Aug-09	0.01070
8	Brazil	BRL	8.5	11.1%	4.6	Aug-09	0.54600
9	Mexico	MXN	60.5	14.9%	4.6	Aug-09	0.07560
10	Iraq	IQD	5182.2	35.1%	4.5	Aug-09	0.00088
11	Switzerland	CHF	4.6	11.5%	4.3	Feb-09	0.94410
12	Turkey	TRY	5.9	21.0%	3.9	Aug-09	0.67420
13	Poland	PLN	11.1	10.2%	3.9	Aug-09	0.35150
14	Australia	AUD	4.6	11.2%	3.9	Aug-09	0.84160
15	Algeria	DZD	277.3	20.6%	3.8	Aug-09	0.01354
16	S Korea	KRW	4462.7	15.6%	3.6	Mar-09	0.00082
17	Canada	CAD	3.4	6.8%	3.2	Aug-09	0.91660
18	Hong Kong	HKD	21.6	13.3%	2.8	Aug-09	0.12900
19	Egypt	EGP	14.9	13.3%	2.7	Aug-09	0.17970
20	Taiwan	TWD	85.6	10.8%	2.6	Jun-09	0.03042

I believe that the trend of countries flooding their monetary systems with ever-expanding amounts of fiat money will erode the value of their respective currencies. Dollardaze will continue to monitor the expansion of money supply and its resulting effects on purchasing power.

Mike Hewitt
DollarDaze.org

Mike Hewitt is the editor of www.DollarDaze.org, a website pertaining to commentary on the instability of the global fiat monetary system and investment strategies on mining companies.

Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.