What factors make a country's currency stable?

Question

• the country it is from is not having a war
• the type of paper products used to make it
• the popularity of the nations as a travel destination
• the overall economic situation and a solid government

Answer 1

• low inflation rates
• high levels of foreign currency reserves
• a strong and stable banking system
• political stability
• strong economic growth
• effective fiscal and monetary policies
• low levels of external debt
• a well-developed and diverse economy
• a well-established legal system
• a high degree of transparency and accountability in government finances and operations.