Currencies Around the World
The currencies in circulation globally vary significantly, with each country designating its own unique currency. The exchange rates of these currencies are closely tied to the value of the US dollar, which stands out as one of the most valuable and widely traded currencies worldwide. Additionally, the US dollar is recognized for its stability and serves as a reserve currency for international trade and finance. However, there are several other currencies that hold considerable value, meaning that one US dollar is equivalent to less than a single unit of those currencies.
Ranking of the Strongest Currencies Globally
Below is a list ranking the strongest currencies in the world from highest to lowest, based on their exchange rate against the US dollar and their value as of 2021:
Kuwaiti Dinar (3.29 USD)
The Kuwaiti dinar (KWD) is the highest-valued currency in the world when compared to the US dollar. Kuwait is a small yet wealthy nation, largely due to its significant oil exports to the global market, which have bolstered the value of its currency. Over the years, Kuwait has established a substantial sovereign wealth fund, managed by the Kuwait Investment Authority, which helps ensure the country’s continued prosperity.
Bahraini Dinar (2.66 USD)
The Bahraini dinar (BHD) ranks as the second most valuable currency globally, with its high value primarily resulting from the country’s oil exports. Notably, the Bahraini dinar has been pegged to the US dollar at a fixed rate since 2005. Bahrain is well-known for its wealth, particularly in the Gulf region, with its economy heavily reliant on the oil and gas industry.
Omani Rial (2.60 USD)
The Omani rial (OMR) is the third most valuable currency, attributed to the country’s strategic location, high quality of life, and advanced economy. The purchasing power of the Omani rial is notably high, resulting in the issuance of currency notes in denominations of 1/4 and 1/2 rial.
Jordanian Dinar (1.41 USD)
Surprisingly, the Jordanian dinar (JOD) ranks as the fourth most valuable currency globally, despite the country’s limited natural resources and less developed economy. The dinar is pegged to the US dollar at a higher value, which aids in maintaining stable exchanges that attract American investments into Jordan. It is important to note that while any country can peg its currency to the dollar at any value, it must maintain its currency’s worth concerning the dollar to keep that peg intact. Jordan has successfully achieved this during the early decades of the 21st century.
British Pound Sterling (1.32 USD)
Many assume that the British pound sterling (GBP) is the most expensive currency in the world; however, it actually ranks fifth on this list.
Cayman Islands Dollar (1.22 USD)
The Cayman Islands dollar (KYD) is among the highest-valued currencies, with the Cayman Islands being recognized as one of the most valuable tax havens globally, having licensed numerous banks and insurance companies.
Euro (1.11 USD)
The euro (EUR) holds the seventh position, thanks to its status as the official currency of many advanced European countries.
Swiss Franc (1.01 USD)
The Swiss franc (CHF) is recognized as one of the highest-valued currencies worldwide. Switzerland is not only notable for its currency but also for its reputation as one of the world’s most stable countries, with a banking system renowned for its confidentiality.
United States Dollar
The US dollar (USD) stands as one of the world’s most valuable, stable, and widely accepted currencies. Due to the dominant global economic standing of the United States, its currency has earned the designation of being the world’s reserve currency, allowing for payments in US dollars to be made virtually anywhere around the globe.
Canadian Dollar (0.75 USD)
The Canadian dollar (CAD) is the tenth highest-valued currency in the world and ranks as the fifth largest reserve currency globally.