The highest value of a currency also shows that the inflation in that country is under control. However, not all currencies are the same. Some are more powerful than others.
Our currency is what we use to carry all sorts of trades. The value of your currency reflects the strength and stability of your nation.
When we think about the strongest currencies in the world, US Dollar, Euro, or Pound generally comes to mind first because they are the most popular and most traded.
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Still, the popularity of a currency doesn’t guarantee a higher value. We never fathom that any other currency would be stronger than these famous ones.
But if we talk about the world’s strongest currencies, some lesser-known names top the list.
Today we shall dive into the strongest, highest-valued currencies of the world for the year 2023. Number one on this list is Kuwaiti Dinar.
List of Strongest Currencies in the World
1- Kuwaiti Dinar Currency (KWD)
As of January 2023, the Kuwaiti Dinar is the highest-valued currency in the world today.
Why is it so expensive? Firstly, Kuwait is a small country with immense wealth and high oil production.
Despite being a small country, it holds 9% of the world’s oil reserves, making Kuwait one of the world’s wealthiest countries.
The Kuwaiti Dinar is currently valued at 3.30 USD. Apart from having a very stable economy, Kuwait has almost no taxes and a meager unemployment rate.
1 KWD = 3.28 USD
1 KWD = 12.30 SAR
2- Bahraini Dinar Currency (BHD)
Bahrain, like Kuwait, is a small country in the middle east. An oil-rich country, Bahrain’s economy heavily depends on exporting petroleum products.
The 2nd highest currency in the world is the Bahraini Dinar. Its value against the US dollar has not changed in 14 years.
1 BHD = 2.65 USD
1 BHD = 9.96 SAR
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3- Omani Riyal Currency (OMR)
Oman is also a country in the Arabian peninsula and has the 3rd most powerful country globally.
The currency’s purchasing power is so high that the country issues half of OMR and 1/4th of OMR banknotes. Oman has a developed economy and boasts a high standard of living.
It is also an oil-rich country, but in recent years, its government has been diversifying its sources of income by investing in gas production, metallurgy, and tourism.
1 OMR = 2.60 USD
1 OMR = 9.75 SAR
4- Jordanian Dinar Currency (JOD)
Jordanian Dinar hold the fourth spot on the list of most valued currencies globally. Despite having such a high value of its currency, the country is not mainly developed.
It also lacks critical natural resources like oil and has sizeable external debt. Its high value can essentially be rendered because its government keeps fixed exchange rates.
1 JOD = 1.41 USD
1 JOD = 5.29 SAR
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5- Cayman Islands Dollar (KYD)
KYD is the currency of the autonomous British territory, the Cayman Islands. The Cayman Islands have the highest standard of living in the Caribbean.
But how is this currency from a Caribbean country so expensive? Cayman Island dollars owe their high value to the place being a global tax haven.
Consequently, they provide licenses to numerous insurance companies, hedge funds, and some of the world’s largest banks.
1 KYD = 1.20 USD
1 KYD = 4.50 SAR
6- British Pound Sterling Currency (GBP)
When counting the highest-valued bills in the world, people usually think of GBP first. Although it is the best currency in Europe, it is ranked 5th on this list of the strongest & highest-valued currencies in the world.
Apart from England, GBP is also the official bill of Jersey, Guernsey, the Isle of Man, the South Sandwich Islands, and South Georgia, Tristan da Cunha, and the British Antarctic Territory.
However, some British colonies published their own bill, which is slightly different from the bills issued by the Bank of England but is quoted 1 to 1.
Consequently, we have Scottish, Northern Irish, Manx, Jersey, Guernsey, Gibraltar, St. Helena, and the Falkland Islands.
1 GBP = 1.24 USD
1 GBP = 4.65 SAR
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7- Swiss Franc (CHF)
The old saying, ‘if it’s swiss, then it must be royal,’ still holds today. Switzerland is one of the world’s most prosperous and most stable countries.
It has an ever-growing and flourishing economy which lands CHF its place on this list. Swiss products like watches, chocolates, knives, etc., are known around the globe for their quality and durability.
1 CHF = 1.06 USD
1 CHF = 4.08 SAR
8- European Euro (EUR)
EUR is among the highest and strongest currencies in the world. It is the official bill of 19 European countries, including some economic heavyweights like France, Germany, Austria, Belgium, Finland, Greece, Ireland, and Italy.
This bill keeps getting stronger every year. It is the most reserved currency globally, 2nd only to the US dollar. According to some rough estimates, 25% of the world’s savings are in EUR. Twenty-five of the world’s countries have pegged their currencies against EUR at fixed rates.
1 EUR = 1.09 USD
1 EUR = 4.08 SAR
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9- US Dollar (USD)
It is no surprise that the US dollar made it to this list. It is the most used and traded currency globally—all commercial and central banks around the globe reserve USD currency. USD is also known as the ‘Global Currency,’ which is almost accepted everywhere.
1 USD = 3.75 SAR
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10- The Canadian Dollar Currency (CAD)
Despite being at the bottom of this list, CAD is the sixth-most traded and fifth-most reserved currency globally.
CAD holds this spot on the list because Canada is rich in natural resources, including vast reserves of crude oil and the second-largest reserve of Uranium in the world.
1 CAD = 0.75 USD
1 CAD = 2.82 SAR
Still, the popularity of a currency doesn’t guarantee a higher value. We never fathom that any other currency would be stronger than these famous ones.
Conclusion
If you are lucky enough to live in a country that boasts a strong currency, the world is open at your fingertips. Quite literally. It allows you to get a feel of the market, invest as you please and have the upper hand wherever you go, especially with the weaker currencies in the market.
Go on ahead and make the most of your dollar!
Want to check out the weakest currencies in the world? Check out our updated list here!
Frequently Asked Questions (FAQs)
- Who has the strongest currency in the world?
As of now, the Kuwaiti Dinar is the strongest currency in the world. It is the top-of-tier currency mainly because it is a country with major oil reserves and is one of the largest suppliers of petroleum in the world.
- Are there any currencies stronger than the USD?
As much as you would like to believe it, the US dollar is not the strongest currency in the world. In fact, most of the middle eastern countries have a currency that is stronger than the US dollar. Hence, the Kuwaiti Dinar, Bahraini Dinar, Omani Rial, and Jordanian Dinar are all currencies stronger than the USD.
The British pound, too, is a currency that is stronger than the U.S. dollar., along with a few other well-known names.
- What is the most widely used currency in the world?
There is no doubt that the U.S. dollar is one of the most widely used and traded currencies to exist. This is exactly why it functions as a foreign reserve for many countries around the world. Most of the currency notes of the USD are, in fact, functional outside the borders of the U.S.
- What is the most stable currency in the world?
The Swiss Franc (CHF) is currently the most stable currency in the world. This is mainly because Switzerland has the lowest levels of debt globally. Not to mention the country is known for its excellent fund mobilization, foreign reserves, and great exports, all of which contribute to the high success of the country’s currency. It usually shows little to no variation staying at a steady rate.
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