Knowing which currencies are most valued in the world is not just simple curiosity but the knowledge that can be taken to your strategic decisions when you are dealing with different types of transactions from abroad.
Learn about the strongest currencies in the world and their influences on our daily lives. Access this content and learn all about it.
For this, it is crucial to understand the factors that interfere with the quotation of a currency. We are talking about the exchange rate variation affected by a series of elements, such as liquidity (a lot of money available in the international market), trade balance, economy, country risk, and even the price of commodities.
You didn’t imagine that the international price of soy, oil, or foreign policies could affect your life, did you? Well then, it’s time to learn about the most valued currencies and their influences on your daily life. First, we’ll begin by listing the top 10 most expensive currency in the world with some information with each one of them followed by a table with the full list of the top 50.
Top 10 Strongest Currency in The World
1. Kuwait Dinar
- 1 Kuwaiti Dinar = 3.31 United States Dollar (USD)
The Middle East is a land famous for its luxury and oil wealth, and here we see everything from astonishing palaces to private jets like the incredible private jet with the gold taps of the Sultan of Brunei. Therefore, it is not surprising that the world’s most valuable currency is located in a Middle Eastern country: the Kuwaiti Dinar.
Created in 1961, this currency has such a high value due to Kuwait’s substantial oil revenues. While it is one of the world’s geographically smallest countries, Kuwait is the third most prosperous Arab country.
The pound? The euro? The dollar? No, surprisingly, the world’s most valuable currency does not belong to any economic power, not even a Western or Asian country, but rather a small but mighty oil power.
Even more surprisingly, this coin, whose unit equals $ 3.31, is the country’s currency that only 20 years ago suffered two wars and a large-scale invasion. This particular currency is the Kuwaiti Dinar. And it has the honor of being the highest value currency unit. The national currency with whose unit more than one unit of any international currency can be acquired.
However, since Kuwait is a small country in an area considered risky and does not have an economy of the caliber of those that support the dollar or the euro, the Kuwait dinar is not chosen as a viable commercial alternative on stock exchanges.
A booming economy: Although the Middle Eastern countries became rich thanks to oil, in recent decades, there have been heavy investments to diversify their economies and create tourism, mining, and even technology.
2. Bahrain Dinar
- 1 Bahraini Dinar = 2.65 United States Dollar
In Bahrain, as in the rest of the small kingdoms that in the middle of the 20th century were part of the British protectorate in the Gulf region, there was no legal tender. Many coins circulated, giving rise to a chaotic and ineffective system from an economic perspective.
The most important of this portfolio of currencies was the Gulf Rupee, widely accepted until creating the Bahrain dinar in 1965. The introduction of this currency gave the country the economic stability it needed for its development.
For a short time (between 1965 and 1973), the Bahraini Dinar was also legal tender in Abu Dhabi, right up until creating the United Arab Emirates Dirham.
The current series is the fourth in the history of this small state, issued in 2008. Its design revolves around the representation of the main distinctive elements of the country’s culture and tradition.
The texts are written in Arabic on the front and in English on the back. All banknotes, regardless of their value, are the same size: 154 x 74 mm. Their nominal values are as follows:
- Half dinar bill
The ½ dinar bill is orange. The smallest banknote in the series has an exchange rate of just over one euro. The obverse features the old Palace of Justice building, while the reverse shows an image of the Bahrain Circuit, where the Formula One Grand Prix is held.
- One dinar bill
The 1 dinar bill is red. The country’s first Koranic school (Al Heyda Al Khalifa) decorates the obverse of the one dinar bill. On the reverse, the image of galloping Arabian horses and the famous Pearl Monument now disappeared.
3. Oman Rial
- 1 Omani Rial = 2.60 United States Dollar
The price in 2020 of the Oman Rial is 2.60 USD, making it the third most valued currency in the financial market. The currency code is OMR.
The country, which is part of the Arabian Peninsula, has a well-developed economy, and the strength of its currency and its relationship with the US dollar is so relevant that the country needed to issue 1/4 and 1/2 Rial bills, that’s right, “Middle Rial,” to facilitate commercial transactions.
4. Jordanian Dinar
- 1 Jordanian Dinar = 1.41 United States Dollar
The Jordanian Dinar, or JOD, has an average price of 1.41 USD. The country has economic and strategic limitations on the international scene, but it still manages to remain among the world’s five most valued currencies for a long time.
The Middle East has a strong tipping culture that is part of everyday life, usually known as baksheesh. However, unlike Egypt, where wages are meagre, and the most impoverished locals use this money to supplement their income, Jordanians would not expect a reward for tasks such as offering instructions. Many would probably decline if you offered them something. However, tipping is recommended in restaurants and for local guides and porters.
As with most of the Middle East, haggling is a big problem in Jordan. This is particularly true when trading souvenirs in local bazaars. Some things to keep in mind are: don’t start haggling unless you’re interested, keep a price in mind, always ask the seller to start bidding, and then take turns adjusting the price.
5. Pound Sterling
- 1 Pound sterling = 1.40 United States Dollar.
The pound sterling is the oldest currency that is still in use today. It is also one of the strongest, with a value greater than the Euro and the US Dollar. Anyone who visits the country may feel that the kind of change is relatively high against other currencies.
Throughout history, the pound had played an essential role since it was the dominant currency during the British colonial empire, before World War II, a predominant role that the US dollar came to occupy back in the 1940s.
The British pound is managed by the Bank of England, which directs its policy with an explicit goal of keeping inflation around 2%.
The objective of keeping inflation around 2% is the driving force behind the Bank of England’s monetary policy decisions; therefore, the interest rate announcements and the statements that accompany the Bank of England’s report have a high impact on the market be very significant.
If trading the pound sterling, the trader should keep an eye on the inflation data, as they will help him predict the decision that the Bank of England may make on interest rates.
Among the inflation indicators, the most important is the Consumer Price Index. Still, you can even observe commodity markets to intuit the evolution of inflationary pressure on the UK economy and the pound sterling.
6. Cayman Islands Dollar
- 1 Cayman Islands Dollar = 1.20 United States Dollar
The Cayman Islands dollar, identified in the world quotations as KY and is approximately worth 1.20 USD. Its appreciation is associated with the Cayman Islands’ attractiveness for investors, banks, insurance companies, and investment funds as it is one of the best-known tax havens in the world.
Much is said about the tax haven nature of the Cayman Islands. In reality, this is because the income there is not taxed. But the fact that it is a tax haven does not mean that there is some free port for money. The country has already signed treaties, and, like many others, it acts intensely to prevent money laundering.
In practice, for the traveller, it matters little. The vast majority of banks that are there are installed in commercial rooms, carrying out online operations directly with their headquarters and branches. Retail banks, with components themselves, are few and mainly serve the local population.
7. Gibraltar Pound
- 1 Gibraltar Pound = 1.23 United States Dollar
The Gibraltar Pound is the official currency of Gibraltar, a British Overseas Territory located on the south coast of Spain. The currency have some relationship with the British pound because of the sovereignty of the United Kingdom over the Territory. Although the Gibraltar pound notes are denominated in pound sterling, but they are not legal tender anywhere in the United Kingdom.
- 1 Euro = 1.21 United States Dollar
The first name for the conversion system between the currencies merged was the European Currency Unit (ECU). The nomination “euro” is attributed to the Belgian German Pirloit, who suggested it to Jacques Santer, and became official in 1995.
Based on ISO 4217, a standard created by the International Organization for Standardization to designate the coins in circulation, this currency’s code is EUR.
The value of the new currency (the euro) was related to that of the ECU by resolving the Council of the European Union, 1998. It came into force in January 1999, as if it were an invisible currency, in a non-material form (used for electronic payments, for example).
In January 2002, it began to circulate in notes and coins, initially in 12 countries, which made it the currency in current use among the original members.
According to the European Central Bank (ECB), about 308 million people started to use the currency in this period. Currently, more than 341 million people use the money, according to the source.
The European economic strengthening, together with the reduction of monetary stimuli by the European Central Bank, which regulates and manages the European Union’s currency, drives up the demand for single money.
Also, other factors, such as, for example, the appreciation (or decrease) of commodities and low or high-interest rates and inflation, stimulate the currency exchange rate.
Since its introduction in 2002, the value and number of euro banknotes in circulation have grown considerably. Undoubtedly, money (the currency) is the most used payment method for carrying out transactions in the Eurozone in terms of the number of transactions.
Despite this data, exposed on the European Central Bank’s website, money has a significantly lower share in terms of value. However, in both aspects, the role of cash has been gradually decreasing in recent decades, while the use of debit and credit cards has grown considerably
9. Swiss Franc
- 1 Swiss Franc = 1.12 United States Dollar
Issued by the Schweizerisches National Bank (SNB), the Swiss Franc is Switzerland and Liechtenstein’s official currency. It is considered one of the most stable and valued currencies globally, which is why we prepared this particular post on the subject.
The SNB is the Central Bank of Switzerland and has the exclusive right to press and issue the Swiss Franc and be responsible for taking care of the country’s economy. For this reason, the bank operates independently, which helps to protect it from political influences and maintain its national economic autonomy and security.
The Swiss Franc is represented by the CHF code and is Switzerland’s official currency, one of the world’s wealthiest countries with desirable economic development. Its quotation is approximately 1.12 USD, and, interestingly, its banknotes are vertically oriented.
In addition to its natural beauty that attracts millions of tourists, the country is also a magnet for business and technology development companies. In other words, a strong economy that is capable of placing its own among the most valued currencies in the world.
10. US Dollar
Finally, we come to the United States dollar or USD, which is the code we follow in quotes, trades, and comparisons. The US dollar is the primary monetary reference for the world of business and tourism.
Governments use the dollar to balance their import and export balances; investors buy USD to diversify their investments, among other applications that help strengthen the US dollar worldwide.
For the record, the US dollar has the largest foreign exchange reserve globally, which makes its currency “acceptable” anywhere in the world. Even with the local currency, many establishments and professionals offer to pay in dollars in some countries.
The currency issued by the United States is used as a reference worldwide. The expression “dollar” has a very curious origin, which refers to the year 1518 and, you see, far from the United States.
In the German city of Joachimsthal, silver extracted from mines gave rise to a silver coin that became known as Joachimsthaler, which quickly came to be called “thaler s.” When German immigrants went to the United States, the term was adapted over the years until the pronunciation of the current one, “dollar.”
What Position Is The Canadian Dollar On The List?
11. Canadian dollar
- 1 Canadian Dollar = 0.79 United States Dollar
The Canadian dollar, or CAD, completes the ranking on number 11 of the most valued currencies in the world in 2021, worth approximately 0.79 USD.
Canada is a country that offers several opportunities for entrepreneurs who want to internationalize their business because the government has a developed market and a strengthened economy. But anyone who wants to invest abroad, or receive investments, needs to understand the evolution of the Canadian dollar and its impact on the economy.
Canada is the tenth-largest economy globally and has an independent monetary policy for those who still don’t know. The Bank of Canada (BoC) is the entity responsible for supervising the policy’s execution in the way it considers most appropriate to the country’s economic circumstances and inflation targets.
Canada’s global commodity prices heavily influence Canada’s monetary policy and the value of the Canadian dollar. Natural resources are an essential part of Canada’s economy, and, therefore, its currency tends to oscillate according to world commodity prices.
The table below is a complete list of the 50 strongest currencies in the world.
Top 50 Strongest Currencies in the World
|5||Pound Sterling||The United Kingdom||GBP|
|6||Cayman Islands Dollar||Cayman Islands||KYD|
|8||Euro||The European Union||EUR|
|10||US Dollar||The United States of America||USD|
|16||New Zealand Dollar||New Zealand||NZD|
|18||Brazilian Real Currency||Brazil||BRL|
|19||Israel New Shekel||Israel||ILS|
|21||Hong Kong Dollar||Hong Kong||HKD|
|23||South African Rand||South Africa||ZAR|
|27||Chinese Yuan Renminbi||China||CNY|
|35||Philippine Peso||The Philippines||PHP|
|37||Czech Koruna||Czech Republic||CZK|
|38||UAE Dirham||The United Arab Emirates (UAE)||AED|
|39||Taiwan New Dollar||Taiwan||TWD|
|44||Saudi Riyal||Saudi Arabia||SAR|
|48||Bosnia Convertible Mark||Bosnia and Herzegovina||BAM|
How to take this knowledge to your advantage?
What do you do with that knowledge now? After all, if you need to negotiate or are planning a leisure trip to some destination, you know that you will need to do transactions with the local currency anyway, right?
The answer is simple. You can follow the movement of quotes by analyzing the local commercial news and looking for solutions that will optimize and bring benefits when buying or sending money abroad.
Now, then, it’s time to focus on your financial strategy, and we have content that can help in that regard.
What factors affect currency appreciation?
Amount of currency available on the market, trade balance, economy, commodities that the issuing country trades, etc.
Is the US dollar the most valued currency in the world?
Despite being a benchmark for other currencies and its country has the largest Foreign Exchange Reserve globally, the US dollar is the ninth most valued currency. The first is the Kuwait Dinar.
Why is cryptocurrencies not in the list of the most valued currencies?
A specific country does not issue cryptocurrencies, so they do not suffer the same positive and negative influences on their price. Comparing such different situations invalidates the result.
This list may change according to local and international economic changes, but in most cases, these currencies only change positions in this ranking and remain among the most valued. Even with the arrival of cryptocurrencies, this scenario has not changed substantially.