Five Global Currencies That Are Closely Tied To Commodities

Some of the major countries in the world are commodity based economies.Heavy dependence on commodity exports affects the relative value of their currencies. The five currencies that are closed tied to commodities are:

1.Australian Dollar – Australia is the world’s largest producer and exporter of iron ore. Demand for the ore strongly impacts the Australian dollar value.

2.Canadian Dollar – Crude oil is the largest export product in terms of revenues to the government. Rising oil prices positively impact the Canadian currency.

3.Russian Ruble – As one of the largest exporters of oil and natural gas, the prices of these commodities directly impact the Russian Ruble.

4.Colombia Peso – Oil is the major export product and the major contributor of revenue to the government.

5.Peruvian Sol – Peru is a major copper producing and exporting country. The country is the second largest exporter of Copper after Chile. Copper price movements have an impact on the Sol.

Source: 5 World Currencies That Are Closely Tied to Commodities, U.S. Funds

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