Strongest currencies in the world: You may have heard that US Dollar (USD)is most traded currency in the world, hence, it is highest currency. Well, it’s not that true. However, dollar is most traded currency yet there are other counties whose money has better exchange rates than that of USD.
The value of currencies in this post is based on their exchange rates against US dollar. But, why to compare with US dollar only? Because, it is Global currency . A global currency is one that can be used for all kinds of trade transactions throughout the world.
US dollar is famous, because 64 percent foreign exchange transaction are made in USD, followed by euro that is only 19.7 percent.
That’s why, it’s quite reasonable to base this list by setting US Dollar as standard unit for measuring value of currencies.
Also, it is a myth that a highest currency shows country’s economic strength. And then the question arises, why do some big economies fail in terms of currency in front of small economies? The simplest explanation is, nominal value of country’s currency has no relation with its economic.
Even developing country like Jordan possess highest-valued currency. Small economic countries manage valuable currency by affixing it to given amount of US dollar. Hence, a powerful and strong currency is one who has international market demand, which in the case US dollar, euro, and yen has.
Note: All values are based on 2018 exchange rates, may fluctuates in the near future. Obsolete currencies like, Lativan lats, are not included in the ranking. Let’s dive into the heap of money and find out the 2020 strongest currencies in the world.
#1 – Kuwaiti Dinar ($3.29)
Currency code – KWD.
Kuwaiti Dinar rates:
1 KWD = 3.29 USD (Kuwaiti dinar to US dollar).
1 KWD = 2.97 EUR (Kuwaiti dinar to euro).
The highest currency in the world is Kuwaiti Dinar (against the US Dollar).
Kuwait is a small country with enormous wealth. The high value (rate) of its currency is explained by significant oil exports into the global market.
Due to the stable petroleum-based economy, highly developed oil production and export, Kuwait is considered to be one of the richest countries in the world.
More than 80% of the country’s revenue comes from the oil industry, as petroleum production here is the easiest and, therefore, the cheapest among other countries.
Since 2003 the currency was pegged to the US Dollar, but in 2007 the government decided to peg the Kuwaiti Dinar to the weighted currency basket.
Besides the very stable economy, Kuwait is a tax-free country with a very low unemployment rate.
#2 – Bahrain Dinar ($2.66)
Currency code – BHD.
Bahrain Dinar rates:
1 BHD = 2.66 USD (Bahrain Dinar to US Dollar).
1 BHD = 2.40 EUR (Bahrain Dinar to Euro).
The Bahrain Dinar is the second most valuable currency.
Bahrain is a Persian Gulf island state with a population of just over 1 million people. As in the first case, this country’s largest source of income are the «black gold» exports.
It is interesting that the Bahrain Dinar is pegged to US Dollar exchange rate, and its rate against the US Dollar has remained stable since 2005 already.
#3 – Oman Rial ($2.60)
Currency code – OMR.
Oman Rial rates:
1 OMR = 2.60 USD (Oman Rial to US Dollar).
1 OMR = 2.34 EUR (Oman Rial to Euro).
Oman is a country on the Arabian Peninsula. Thanks to its strategic location, it possesses a developed economy and a high quality of life.
The Oman Rial is also pegged to US Dollar as Bahrain Dinar.
It is remarkable that purchasing power of this currency is so high that the government had to issue 1/4 and 1/2 Rial banknotes. On the picture above, you can see 1/2 Rial (Half Rial).
#4 – Jordan Dinar ($1.41)
Currency code – JOD.
Jordan Dinar rates:
1 JOD = 1.41 USD (Jordan Dinar to US Dollar).
1 JOD = 1.27 EUR (Jordan Dinar to Euro).
It is hard to explain the high value of Jordan Dinar. This country is not economically developed and it lacks essential resources, such as oil.
Nevertheless, one Jordan Dinar costs 1.41 US Dollar, what makes it one of 10 the strongest world currencies.
#5 – British Pound Sterling ($1.32)
Currency code – GBP.
British Pound Sterling rates:
1 GBP = 1.32 USD (British Pound Sterling to US Dollar).
1 GBP = 1.19 EUR (British Pound Sterling to Euro).
Most people consider that British Pound is the strongest world currency, but it only closes the top five of this list.
British Colonies issue their own banknotes, which visually differ from banknotes issued by the Bank of England, but they are valued as 1 per 1.
Therefore, there are several of them: Scottish, North Ireland, Manx, Jersey, Guernsey, Gibraltar Pounds, as well as St. Elena Island Pound and Falkland Islands Pound.
Amusingly, native Britons do not always want to accept «other» Pounds as a means of payment.
#6 – Cayman Islands Dollar ($1.22)
Currency code – KYD.
Cayman Islands Dollar rates:
1 KYD = 1.22 USD (Cayman Islands Dollar to US Dollar).
1 KYD = 1.01 EUR (Cayman Islands Dollar to Euro).
Cayman Islands is one of the world’s best tax havens. These islands provided licences for hundreds of banks, hedge funds and insurance companies.
Thanks to its leadership among tax havens, Cayman Islands Dollar costs near 1.22 US Dollar.
#7 – European Euro ($1.11)
Currency Code – EUR.
European Euro rate:
1 EUR = 1.11 USD (European Euro to US Dollar).
The euro currency has strengthened over the past few years. This allowed it to raise the list of the most powerful currencies. Partially, its strength is explained by the fact that it is the official world currency in European countries among which you will find several economically developed countries.
Besides, Euro is the second reserve world currency enveloping 22.2% of all world savings (US Dollar has 62.3%).
#8 – Swiss Franc ($1.01)
Currency code – CHF.
Swiss Franc rates:
1 CHF = 1.01 USD (Swiss Franc to US Dollar).
1 CHF = 0.91 EUR (Swiss Franc to Euro).
Switzerland is not only one of the richest countries in the world, but it is also one of the most stable. Its banking system had long been known for its formerly resolute «Bank Secrecy».
Besides, its high-tech goods are very well known all around the globe.
Pay attention when you see an original of this banknote. This is the only banknote I saw which has the vertical view.
#9 – US Dollar
Currency code – USD.
US Dollar rate:
1 USD = 0.90 EUR (US Dollar to Euro).
Owing to USA world economic leadership, its currency achieved such a title as «World Reserve Currency». In other words, you can make dollar payments everywhere (in any country).
#10 – Canadian dollar ($0.75)
Currency code – CAD.
Canadian dollar rates:
1 CAD = 0.75 USD (Canadian dollar to US Dollar).
1 CAD = 0.68 EUR (Canadian dollar to Euro).
The Canadian dollar is the fifth largest reserve world currency. Canadian dollar is often called the «loonie» in honor of the bird depicted on the coin worth 1 dollar.
Strongest currencies in the world: Out of TEN
Due to the dynamically changing economic and political situation in the world, it is hard for some currencies to remain in this ranking, so here is the list of currencies that left the top ten of previous periods.
Strongest currencies in the world: Australian dollar ($0.68)
Currency code – AUD.
Australian dollar rates:
1 AUD = 0.68 USD (Australian dollar to US Dollar).
1 AUD = 0.62 EUR (Australian dollar to Euro).
An interesting fact is that the new series of Australia banknotes, as pictured above, would have a tactile feature (Braille) to help the visually impaired community to tell the value of the banknote.
Also in Australia, the fight against cash is conducted by reducing the share of cash payments when making small retail purchases.
Strongest currencies in the world: Libyan Dinar ($0.71)
Currency code – LYD.
Libyan Dinar rates:
1 LYD = 0.71 USD (Libyan Dinar to US Dollar).
1 LYD = 0.64 EUR (Libyan Dinar to Euro).
The Libyan Dinar has token money called Dirham. It is interesting that one Dinar is equal to 1,000 Dirham, and not 100, as we all used to think.
Strongest currencies in the world: Azerbaijani manat ($0.59)
Currency code – AZN.
Azerbaijani manat rates:
1 AZN = 0.59 USD (Azerbaijani manat to US Dollar).
1 AZN = 0.53 EUR (Azerbaijani manat to Euro).
It was a surprise to see Azerbaijani manat in this list. However, the currency of this Central Asian country is a little bit weaker than US Dollar.
The economy of this country is surprisingly strong, and its unemployment rate is low.
Strongest currencies in the world: Seborgan Luigino?
Have you ever heard about the currency called Seborgan Luigino?
It belongs to the micronation Principality of Seborga on the border of Italy and France. The Seborgan Luigino circulates mostly locally and is not considered a valid currency in any other country.
But interestingly, the local rate claims to be 1 SPL = 6 USD, which could make it the highest-valued currency in the world if it was officially recognized outside Seborga.
So, despite such a huge value of SPL, it cannot top our list of the highest currencies in the world.