Top 16 Strongest Currencies in the World

Switzerland’s inflation rate is currently 3.3%, which is close to the highest it has been for 30 years. Oil (the commodity responsible for the strength of the top four currencies) since the 1970s, has been bought and sold in dollars. Due to the USA’s economic (and military) dominance, and the wide availability of dollars, oil is bought and sold in dollars almost exclusively – a monopoly that has been maintained by the US. This means that most countries have large amounts of dollars in their reserves, with leftover dollars for oil referred to as petrodollars. The central currency of the Bahamas since 1966, the Bahamian dollar is tied to the US dollar with a fixed exchange rate, meaning that the Bahamian Dollar will always equal the US Dollar.

The Jordanian dinar

Currently, the Euro is worth more than the US metatrader web Dollar, with €1 equal to $1.09. However, this doesn’t mean the Euro is necessarily stronger than the Dollar. Currency strength is influenced by many factors, not just the exchange rate. It depends on things like inflation rates, interest rates, and the country’s debt levels.

What is the most valuable currency?

Oman sits between the United Arab Emirates and Yemen at the eastern tip of the Arabian Peninsula. As with its wealthy neighbors, Oman is a major exporter of oil and gas. The Omani rial was introduced in the 1970s and is pegged to the dollar. Bahrain is an island nation in the Persian Gulf off the eastern coast of Saudi Arabia.

• The Bahamas is the wealthiest nation in the West Indies and has the 14th-highest nominal GDP in North America.
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• The British pound sterling is the primary currency of the United Kingdom and its territories.
• It is not a weak currency by any measure but has experienced one of the worst periods of depreciation in 2022.
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Another country that is known for its exports more than its size, Bahrain has also made its wealth from exporting petroleum products – over $69 billion so far. This has contributed substantially to the continued strength of the Bahraini dinar as it remains the second most expensive currency in the world. It introduced programmable blockchain technology, allowing developers to build decentralized applications (dApps). Smart contracts on Ethereum enable everything from DeFi platforms to NFT marketplaces. Its transition to Proof-of-Stake made it more energy-efficient, solidifying its dominance in blockchain innovation. Decentralized finance (DeFi) tokens power blockchain-based financial services.

• FXOpen has compiled a list of the world’s top-20 currencies in the world as of 2022.
• Since 2009, inflation has fluctuated below 5% but has mostly remained constant.
• At Nomad Capitalist, we keep an eye on everything that makes a country investment-friendly, including its currency.
• Part of its value comes from being the official currency of 20 European countries, including several economically developed ones.

As with Kuwait, Bahrain, and Omar, Jordan is good friends with Uncle Sam as its currency is pegged to the US dollar at approximately $1.40 for every JOD. The Jordanian dinar’s inclusion in this list is quite different from the previous three currencies. The Hashemite Kingdom of Jordan (or simply Jordan) lacks the in-demand oil resources of its Arab neighbors. It is considered an upper middle-income, with a sizable chunk of its population living below the poverty line.

British Pound (GBP)

And it’s widely circulated, with people in the U.S. sending tens of billions of dollars abroad to relatives and friends each year. Known as the strongest currency in the world, the Kuwaiti dinar or KWD was introduced in 1960 and was initially equivalent to one pound sterling. Kuwait is a small country that is nestled between Iraq and Saudi Arabia, whose wealth has been driven largely by its large global exports of oil. Oman is yet another strong economy that’s made its wealth from exporting oil reserves. This has definitely contributed to its national currency remaining one of the strongest currencies in the world. The currency of the United States is a primary reserve currency of the world economy.

Canadian dollar – CAD

Until then, unique currencies had been used by each province, until 1871, when the best forex calendar government passed the Uniform Currency Act making the Canadian dollar the official currency. As of 2023, here is a list of the top 20 strongest currencies in the world. According to the UN, there are 180 currencies in circulation in the world. Certain currencies are more valuable than others – some significantly more so. This doesn’t necessarily make one country richer than another, but the strength of a currency does often correlate with a country’s GDP and stability. Investors tend to hoard Swiss francs during economic downturns, meaning they will always be sought-after.

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Forex

It’s the national currency of England, Scotland, Wales and Northern Island. The US dollar is the 10th strongest currency in the world, worth exactly 1 against itself. All other units of currency across the globe are worth less than a US dollar. Britain is the sixth largest economy by Gross Domestic Product (GDP), according to the World Bank. The pound was first introduced in the 1400s before being decimalised in 1971.

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It has become so prosperous because of mineral exportation and growth in the production of minerals. As of 2024, about $2.40 trillion USD is in circulation, with 60% circulating outside the US. Part of its value comes from being the official currency of 20 European countries, including several economically developed ones. Nevertheless, it is still one of the oldest currencies in circulation and is among the most traded currencies globally. Most people think the British Pound holds the highest monetary value among currencies, but this is not the case. Its rate against the US Dollar places the GBP only in the 5th position among the most valuable currencies.

The Euro is the second-most traded currency in the world and the official currency for 19 European countries. While it was worth less than the US Dollar upon its introduction in 2000, it soon became more valuable and reached as high as $1.60 during the United States’ economic crisis in 2008. Like Jordan, Bahrain’s economy is also heavily reliant on oil and gas revenues. So, any oil and gas prices shift may affect the country’s economy. This currency is pegged at 2.65 USD, so its high value does not say as much about its economy.

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit.

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