Highest Currencies In The World
Ever Wondered what currencies are the highest in the world? There are over 180 currencies recognized as legal tender by the UN all over the world But which of these currencies holds the most value? Do US dollar Is the world’s reserve currency, but it is not the highest currency globally, but it serves As the world’s reserve currency. This currency comparison is made with the US dollar as the base currency for contrast. The strongest currency in this article will be the most expensive one compared to the US dollar.
So here are the top highest currencies in the world starting from the least of this order.
Table of Contents
- 1 Kuwait Dinar
- 2 Bahrain Dinar
- 3 Omani Rial
- 4 Jordan Dinar
- 5 British Pounds Sterling
- 6 Gibraltar pound
- 7 Cayman Islands Dollar
- 8 European Euro
- 9 Swiss Franc
- 10 US Dollar
- 11 Canadian Dollar
- 12 Libya Dinar
- 13 Brunei Dollar
- 14 Singapore Dollar
- 15 Australian Dollar
- 16 New Zealand Dollar
- 17 Frequently Asked Questions
- 18 Conclusion
Kuwaiti dinars or KWDs were introduced in 1960 and were equal to one pound sterling at first. They are known as the strongest currencies in the world. The small country of Kuwait, nestled between Iraq and Saudi Arabia, has primarily become wealthy due to its oil export.
Kuwaiti dinars are the world’s most valuable currency at face value, or simply the ‘strongest currency’ since they are worth just 0.30 Kuwaiti dinar for every dollar. Kuwait has a history of oil exploration that has led to great success. The economy of this country is stable across the globe. Despite being one of the smallest countries in the world, Kuwait has invested heavily. Moreover, Kuwait has one of the lowest unemployment rates in the world and is tax-free.
There is no doubt that the Bahrain dinar, or BHD, is the second most powerful currency globally. The Arabic currency is broken up into 1000 smaller units, called fils, as with most other currencies on this list. Only Bahrain uses the Bahraini dinar, which is pegged to the dollar.
A Bahraini dinar is worth 0.38 US dollars when traded for 1 US dollar.
BHD was formed in 1965. Bahrain’s economy has a fixed exchange rate, and for this reason, its high value has little correlation with Bahrain’s economy.
Furthermore, Bahrain is the 5th most prosperous Arab nation, with the 23rd largest economy globally, though it does not appear in the top ten wealthiest countries.
Just as the name sounds, the Omani Rial is the official currency of the country Oman. The money is also divided into 1000 subunits known as Baisa, also written as Baiza.
The currency barges the third strongest currency globally, pegging the Us dollars as an Omani Rail equals $2.6008.
This currency has its sudden increase after the successful oil exportation of the Oman country. The Central Bank of Oman buys dollars at the rate of 0.384 rails and sells it at the rate of 0.385 rail, making it the third-strongest currency in the world after the Kuwait Dinar and Bahrain Dinar.
As the name sounds, the currency is the legal tender of Jordan. Called Jordanian Dinar or JOD, the money barges the 4th strongest Currency in the world. Replacing the Palestine Pound to become the original currency of the Jordan, the currency cane to be in 1950. As of 1949, banknotes for the currency were issued by the Jordan Currency Board in denominations of 1⁄2, 1, 5, 10, and 50 dinars, each representing the country in each way
Being above the Us dollar. Since 1995, the currency has been pegged by the IMF’s special drawing rights (SDRs), while in practice, it was fixed at 1 U.S. dollar = 0.709 dinars most of the time, which is approximately 1 dinar = 1.41044 dollars. With their Central Bank purchasing the U.S. dollars at 0.708 dinars per dollar and sells U.S. dollars at 0.710 dinars per dollar, it stands as the fourth-strongest currency globally.
British Pounds Sterling
It is probably the most widely expected that the British Pound Sterling will be the most valuable currency globally by the year 2021, but it is only the 5th highest in terms of value. The British pound, also known as the pound sterling or GBP, is currently ranked number 5 among the world’s most valuable currencies. It is the oldest currency still in use, and, although not the strongest in the world, it does maintain the record as the oldest currency in the world.
The pound sterling is often viewed as one of the strongest currencies globally and is the most widely used currency in the world. Around 12.8% of all foreign exchange market daily trades are performed with this currency. It is also the fourth most traded currency globally. The exchange rate for one US dollar is approximately 0.75 GBP. (USD/GBP) is a currency pair and is the 3rd most traded in the world.
This currency is exchangeable with sterling at face value, while the Gibraltar pound is Gibraltar’s national currency. So you have the option of using both GBP and GIB in Gibraltar.
You can purchase one Gibraltar pound for around 0.81 U.S. dollars, similar to the British pound.
Cayman Islands Dollar
Currently, the Cayman Islands dollar, which is the national currency of the island nation, is the 7th most expensive currency in the world. The Cayman Islands, an autonomous British territory located in the Caribbean, are one of the largest financial tax havens for wealthy individuals and corporations.
Considering the exchange rate for a US dollar and a Cayman Islands dollar, the Cayman Islands dollar is the strongest and only Caribbean currency.
The governor sets the Cayman Islands Dollar according to United States Dollar values. According to Article 22 of the 2013 Revision of the Monetary Authority Law.
A newly developed currency, the Euro or EUR, is used as an official currency in 19 countries, making it the most widely used official currency worldwide. In addition to Germany, France, and Spain, many other countries use this currency as their official currency. It is often known as the second most crucial reserve currency in the world. Besides leading the foreign exchange market in terms of volume, the currency is also the second most traded currency. There is no doubt that the EUR/USD pair or Fiber is the most frequently traded forex pair, accounting for almost a quarter of all daily forex trades.
You will receive around 90 cents, or 0.90 euros, for every US dollar. In this way, it ranked as the 8th strongest currency globally based on the list so far. Additionally, the Euro is the second reserve world currency (after the US Dollar, with 22.2% of the world’s savings held in the Euro.
Liechtenstein and Switzerland both use the Swiss franc.
The first higher value currency than the US dollar, the Swiss Franc, is worth around 0.98 US dollars, making it the second most valuable currency. Switzerland is a very stable and wealthy country, which makes this no surprise.
Switzerland also ranks 7th among the most traded currencies globally due to its strict policies on monetary policy and low debt levels. It has a reputation for high-tech products, as well as a “bank secrecy” banking system. Switzerland’s Swiss Franc banknote is unique in appearance. In the world, this may be the only banknote that has a vertical view.
Aside from the United States, many other countries already use the US dollar as a currency. Almost all central and commercial banks around the world hold the currency as a reserve currency. A large part of daily trades on the foreign exchange market is also conducted in dollars, 88.3% of which are denominated in US dollars. United States currency was given the title of ‘World Reserve Currency’ due to its status as the world economic leader (despite being at odds with other world powers like China).
As the wealthiest country globally, the US dollar holds many first-place titles but surprisingly ranks only 10th as a contender for the strongest currency in the world.
The US dollar is used as a benchmark for comparing the currency strength of each currency on this list. Hence, the US dollar is worth exactly one US dollar, which stands at position 10.
Due to Canada’s political and legal stability, the Canadian dollar is one of the most popular currencies for central banks to hold as foreign exchange reserves. Aside from that, CAD is a trendy item to trade when trading forex and accounts for around 5% of daily transactions on the global foreign exchange market.
Approximately, you can purchase 1.31 Canadian dollars with a US dollar, giving it the 11th highest ranking in the world’s strongest currencies, but its global popularity precedes its value.
A Libyan dinar is commonly called LYD, the abbreviation for Libyan dinar. An individual dinar is divided into 1000 dirhams, which differs from many other currencies measured in units of 100.
Around 1.41 Libyan Dinar would be equivalent to one US dollar. Despite LYD’s fair value, it is still one of the world’s strongest currencies.
In 1967, the Sultanate of Brunei adopted the Brunei dollar as the currency. The Brunei dollar can be exchanged at face value for the Singapore dollar, and both currencies are legal tender in both countries.
With an exchange rate of approximately 1.35 Brunei dollars to a US dollar, the BND is somewhat more expensive than the Singapore dollar.
Singapore’s official currency is the Singapore dollar (SGD). Brunei and Singapore use it as well. You can purchase 1.36 Singapore dollars for every US dollar. Singapore dollars are the 13th most traded currency on the foreign exchange market, accounting for around 1.8% of all foreign exchange transactions.
The Australian dollar is one of the most expensive currencies in the world. Although it is not the most expensive currency globally, it is a precious currency and one of the most stable currencies in the world. Depending on the exchange rate, 1 US dollar will be worth 1.45 Australian dollars, making it one of the most expensive currencies. Around 6.8% of daily trades are conducted through the Australian dollar, making it the 5th most traded currency on the forex market. This is due to the currency’s stability, high interest rates, and the belief that diversification is a benefit it offers.
New Zealand Dollar
The NZO (New Zealand dollar) Is our number 16 when it comes to the strongest currency in the world. It is the official currency of New Zealand. In recent times, this currency has gained strength mainly due to the stability of the country’s political system, high-interest rates, and gross domestic product growth. Compared with the US dollar, you will get 1.50 New Zealand dollars in exchange for one US dollar. The New Zealand dollar might be the 16th strongest currency globally, but its rank goes off to be among the ten most traded currencies in the world when it comes to trading.
Frequently Asked Questions
Which currency in the world is considered the weakest?
Iran’s Rial or Venezuela’s Bol*var is considered the weakest currencies in the world. This is mainly because these countries have high inflation levels, political conflicts, and low economic growth rates.
Which currencies are most traded in the world?
EUR/USD, USD/JPY, and GBP/USD are examples of some of the most popular currency pairs to trade, as these all represent well-established and wealthy economies globally.
Why is the Kuwait dinar so expensive?
Kuwait’s oil and gas industry has contributed to the strength of the Kuwaiti currency. The country has large oil reserves, making Kuwait one of the biggest oil exporters in the world.
Which currency is safest for investing?
Many investors consider the Swiss franc (CHF) to be a safe-haven asset, considering that it is a safe currency. In addition to its neutrality, Switzerland has a solid monetary policy and low levels of debt.
Now we have seen a list of the top 16 most expensive currencies in the world, and we have seen the reason why Kuwait dinar remains the top of this list for so many years now. Many factors can cause acorn trees currency to either increase or depreciate over time. However, the currencies we have listed in this article have shown that they deserve to be listed due to their stability over the years. Good knowledge of different currencies in the world is essential for everyone, especially for people interested in Trading foreign exchange. Regardless of that, knowing the day value of various world currencies can help inform your decisions on investments and even your financial plans.