Do you know what is the most valuable currency in the world? Well, if you are curious to know about currencies, keep reading. We have some insightful information for you.
There are many currencies in the world that have higher values than the pound sterling and the U.S. dollar. What's interesting is, the strongest currencies don't always belong to the wealthiest nations of the world. It all depends on the conversion rate.
Here's a list of the 10 strongest currencies in the world:
1. Kuwaiti Dinar (KWD)
Kuwaiti Dinar is known as the strongest currency in the world. Kuwait is a small country that is nestled between Iraq and Saudi Arabia. It holds nine percent of the world’s global oil reserves.
The currency was first introduced in the year 1960, post its independence from the United Kingdom. And since then it has gone on to become the most valuable currency in the world.
Kuwait also has a low unemployment rate and is also one of the tax-free countries in the world.
The major reason for this is oil exports, 80% of its global revenue comes from the oil industry. The Kuwaiti dinar is the strongest circulating currency as of May 2021, with one Kuwaiti dinar equaling 3.32 US dollars.
2. Bahraini Dinar
Bahrain Dinar is the second strongest currency in the world. Bahrain is an island nation located in the Persian Gulf, with a population of less than just over 1 million inhabitants.
With the currency code of code BHD, it came into existence in the year 1965. Its largest source of income comes from the export of petroleum products. Many expatriates in Bahrain are Indian, which makes the BHD to INR the more common.
3. Oman Rial
Oman Rial is third in the list of strongest currencies. The currency code for it is OMR. It was introduced in the year 1970 as Saidi Rial named after the sultanate of Oman, The House of Al Said.
It is located on the southeastern coast of the Arabian Peninsula. The economy of Oman is highly dependent on its oil reserves. Oman also has overflowing access to natural resources.
The Oman Rail is high in purchasing power, it is so high that the Omani government had to issue 1/4 and 1/2 Rial banknotes.
Oman is also generating revenue from tourism and agriculture. It is a developed economy and offers the citizens of Oman a good quality of life.
4. Jordan Dinar
The fourth strongest currency in the world is Jordan Dinar. Located near the Jordan river, the currency became Jordan’s official currency in 1950.
Though the country is not economically developed & is also not rich in oil resources, the government runs a tight ship on exchange rates. Which makes it the fourth-strongest currency in the world.
The economy of this country is still classified under an emerging market economy. But for the past 20 years, it has been pegged to U.S dollars and maintained it really well.
5. British Pound Sterling
British Pound Sterling stands 5th in the list of strongest currencies. This is the national currency for the United Kingdom.
The most widely used currency is still ranked fifth as it cannot beat the Arabian currencies.
But, British Pound Sterling is widely used & the oldest independent currency in the world, being first used in the United Kingdom in 1489.
6. Cayman Islands Dollar
The Cayman Islands Dollar ranks sixth in the list of strongest currencies. It was introduced in 1972, also known as the world's newest currencies.
One of the most powerful Caribbean currencies is also among the world's best when it comes to tax. The Cayman Islands is a British Overseas country located in the West Caribbean sea which is independently run.
The country also provides licenses for numerous hedge funds, banks, and insurance companies.
7. European Euro
The European Euro was introduced as the European Union's principal currency on January 1, 1999. It is also the world’s second-biggest reserve currency.
The currency first started in the form of traveller cheques and electronic bank transfers, & later in 2002, it appeared in coins & physical notes.
Being the official currency of the European continent, which includes many economically developed countries, it adds more value to the currency.
8. Swiss Franc
The Swiss Franc currency ranks 8th in the list, and is used in Switzerland. The stability and wealth of Switzerland make it more popular.
Did you know, Swiss Franc currency acts as a safe haven currency for investors in periods of economic instability. It is the world's only currency that is not impacted by inflation.
It is also the 7th most traded currency in the world. The country also maintains strict monetary policy and low debt levels, which makes it ‘safe-haven’ currency. The banknotes are extraordinary & probably the only banknote in the world that has a vertical view.
9. US Dollar
Like me, many of you predicted it to be on the top. The world's most important reserve currency, since 1944, is also the world’s most traded currency.
With so many buyers, the currency is held by both central and commercial banks all around the world for international transactions. Almost 70 percent of the bank notes are circulated outside the United States.
The United States of America (USA) is the most powerful nation in the world. Over the years, the strength of U.S dollars has increased massively.
10. Canadian dollar
The Canadian dollar is the sixth most traded in the world. It is colloquially known as the Loonie, & is considered the most powerful and valuable currency in the world.
Canada's natural resources rank third in value globally. This is because it holds huge reserves of crude oil and the second-largest uranium supply on the planet.
But the value of the Canadian dollar is highly sensitive and fluctuates with the value of the US dollar, as most of Canada’s trade is done with the neighbouring USA.
Interesting right? Even I thought the U.S would be on the top of the list. Now go boast this information with your friends.