Strong currency and weak currency are
relative. The terms are used to describe the value and the strength of a
currency against other currencies.
When in strong currency, one can purchase
more foreign currency and consumer will see lower or cheaper prices on foreign
products. It helps to keep the inflation low. However, the disadvantage is most
of the increase in spending will be in countries that are in weaker currency as
consumer will less spend on local products.
If in weak currency, country’s export
gets cheaper resulting to increase in sales that will lead to economic growth. The
disadvantage is inflation will go higher and it will become more expensive to
pay foreign investors that are priced in foreign currency.
