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The Strongest Currencies in the World

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Have you thought about what the highest currency in the world is? Is it the US dollar, the euro, or the British Pound? No, they are not. They are the world’s most famous, most traded, and widely spread currencies. Some other currencies outperformed those three. Surprisingly, but being the most traded, the US dollar is not even in the middle of the top 10 list.

So, how to determine if a currency is valuable? The currencies’ strength is measured by several factors, such as currency rates, nominal gross domestic product (GDP) per capita, inflation rate, and many other economic and political issues.

To define the highest currencies in the world, we have compared them to the US dollar as a base currency. That is why the most valuable currencies are the ones that are the most expensive compared to USD.

The world’s strongest currencies

Here is a recap of the highest currencies in the world:

# Currency USD rate Code
1 Kuwaiti Dinar 3.26 USD KWD
2 Bahraini Dinar 2.65 USD BHD
3 Omani Rial 2.60 USD OMR
4 Jordanian Dinar 1.41 USD JOD
5 Cayman Islands Dollar 1.21 USD KYD
6 British Pound Sterling 1.21 USD GBP
7 Swiss Franc 1.04 USD CHF
8 European Euro 1.02 USD EUR
9 US Dollar 1 USD USD
10 Canadian Dollar 0.78 USD CAD

*All data is current as of July 29, 2022.

Kuwaiti Dinar

  • Country of issuance: Kuwait
  • Currency code: KWD
  • Exchange rate: 1 KWD = 3.26 USD

The Kuwaiti dinar is the official currency of Kuwait and the most valuable currency in the world. Kuwait is a small country situated between Saudi Arabia and Iraq. Owning large oil reserves and significant oil exports to the global market, Kuwait is one of the wealthiest counties on earth. Besides, Kuwait is a tax-free country with a very low unemployment rate. Before, the Kuwaiti dinar was pegged to the US dollar. In 2007, the government decided to peg the Kuwaiti Dinar to the weighted currency basket.

An interesting fact: There is a currency that could have been considered more valuable than the Kuwaiti dinar if it was officially recognized. It is the Seborgan luigino (SPL). It is used in the micronation Principality of Seborga, on the border of Italy and France. The Seborgan luigino is recognized by the regional banks but has no value outside of Seborga. So, the local rate of 1 SPL is 6 USD.

Bahraini Dinar

  • Country of issuance: Bahrain
  • Currency code: BHD
  • Exchange rate: 1 BHD = 2.65 USD

The Bahraini dinar is the official currency of Bahrain, another country known for its oil exports more than its size. The Kingdom of Bahrain is an island country in the Persian Gulf. The country’s wealth comes from the oil and gas industry, which supports more than 85% of the kingdom’s revenues. The Bahraini dinar was introduced in 1965 to replace the Gulf Rupee. Now, it is pegged to the US dollar in order to encourage foreign investments.

Omani Rial

  • Country of issuance: Oman
  • Currency code: OMR
  • Exchange rate: 1 OMR = 2.60 USD

The Omani rial was first introduced in 1970 as the official currency of Oman and has been pegged to the US dollar since then. Located in the Arabian Peninsula, the Sultanate of Oman has a strong economy due to the oil exports to various countries all over the world. However, the country’s revenue also benefits from tourism and agriculture.

Jordanian Dinar

  • Country of issuance: Jordan
  • Currency code: JOD
  • Exchange rate: 1 JOD = 1.41 USD

The Jordanian dinar has been the official currency of Jordan since 1950. Unlike the countries mentioned above, Jordan does not have oil. Yet, the Jordanian dinar is strong due to the country’s diversified economy – from trade and finance to manufacturing and mining. The Jordanian dinar is pegged to the US dollar.

Cayman Islands Dollar

  • Country of issuance: Cayman Islands
  • Currency code: KYD
  • Exchange rate: 1 KYD = 1.21 USD

The Cayman Islands dollar is the official currency of the Cayman Islands. The Cayman Islands are known as the “tax haven” as they offer offshore bank services for financial corporations and wealthy individuals. The Cayman Islands dollar was introduced in 1970 and is pegged to the US dollar at a fixed rate.

Pound Sterling

  • Country of issuance: United Kingdom
  • Currency code: GBP
  • Exchange rate: 1 GBP = 1.21 USD

The pound sterling is the official currency of the United Kingdom, the UK Crown Dependencies and the British Overseas Territories. It is the highest currency not based in the Middle East. It is not just the oldest currency but among the most influential ones in global trade and finance. It forms part of the basket of IMF Special Drawing Rights.

Swiss Franc

  • Country of issuance: Switzerland
  • Currency code: CHF
  • Exchange rate: 1 CHF = 1.04 USD

The Swiss franc is the official currency of Switzerland and Liechtenstein, the wealthiest countries in the world. The Swiss franc is known as a ‘safe haven’ currency because of the countries’ stable economy, the strictest monetary policy, and lowest debt levels. Having been introduced in 1850, Switzerland’s banknote is the only one in the world with a vertical look.

Euro

  • Country of issuance: Eurozone
  • Currency code: EUR
  • Exchange rate: 1 EUR = 1.02 USD

The euro is the official currency of 19 European countries. Being the youngest currency, the euro is the 2nd most used currency globally, both in reserve and circulation. The euro is not pegged to any other currency, but there are about 25 countries that have pegged their national currencies to the euro.

US Dollar

  • Country of issuance: United States of America
  • Currency code: USD
  • Exchange rate: 1 USD

The US dollar is the official currency of the United States of America and its territories. The US dollar was first introduced in 1972 and has become the world’s most used and traded currency. The US dollar has a title of a ‘World Reserve Currency.’

An interesting fact: Of all USD in circulation, only 30% is within the USA, which means that 70% of all USD banknotes and coins are used outside of the United States.

Canadian Dollar

  • Country of issuance: Canada
  • Currency code: CAD
  • Exchange rate: 1 CAD = 0.78 USD

The Canadian dollar is the official currency of Canada. Since Canada is connected to the US through trade, the Canadian dollar fluctuates substantially based on the ongoing value of the US dollar. The Canadian dollar is considered strong because Canada is the world’s second-largest supply of uranium and crude oil. Thus, the Canadian dollar depends on global oil price fluctuations. Due to the country’s political stability, the Canadian dollar accounts for 5% of daily trades in the Forex market.

An interesting fact: The Iranian rial (IRR) is the least valuable currency in the world. Iran used to be a major oil exporter, but because of the sanctions from the USA and the European Union, Iran was deprived of access to the world’s market. Thus, the Iranian economy, along with the Iranian rial, came to decline. Nowadays, 1 IRR equals 0.00002363 USD.

FAQs

  • What is the highest currency in the world? Kuwaiti Dinar (KWD) is the most valuable currency in the world due to the country’s strong economy. 1 KWD = $3.26.
  • What is the most traded and used currency in the world? The US dollar is the most traded and used currency in the world. Over 70% of all US banknotes are used outside the USA. The US dollar is also a reserve currency of many countries.
  • What is the world’s most stable currency? The Swiss franc (CHF) is the most stable currency in the world. Switzerland has the lowest debt level and sound monetary policy, which make the country’s economy extremely strong. Due to all these factors, CHF is often called a ‘safe haven’ currency. 1 CHF = 1.04 USD.
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