While the US dollar remains the world's reserve currency, it is by no means the highest or most valuable currency in the world. This article provides an up-to-date ranking of the strongest currencies in the world, based on an analysis of 180 internationally recognized exchanges, includingafrican coins.
The value of coins depends on a variety of circumstances. However, it usually increases due to government stimulus programs, a low inflation rate (around 2% per year) and an improving trade balance.
For example, a nation that imports more currency than it exports has a trade surplus and will therefore have one of the most expensive currencies in the world.
In reality, constant strengthening of a currency is not necessarily a positive phenomenon, and governments often devalue their currencies on purpose. Therefore, one of the most expensive currencies in the world is an indication of a country's ability to effectively control inflation.
Cryptocurrencies are the most valuable currencies in the world, but they were excluded from this list because they are not recognized as legal tender.
Compared to the US dollar, the world's dominant reserve currency, these are the highest currencies in the world:
the US dollar haswas the reserve currency of the worlddoBretton Woods Agreement of 1944and is the ninth highest valued currency in the world. It is the most traded currency on the forex market, accounting for over 85% of daily transactions.
As one of the strongest currencies in the world, the US dollar accounts for approximately two-thirds of global savings, allowing it to be used as a medium of exchange in virtually every country.
Although the US dollar is one of the most valuable currencies in the world, it has lost more than a tenth of its value against the euro due to the extraordinaryThe US monetary and fiscal response to the coronavirus crisis.
In 2022, the dollar value in circulation was US$2.304 trillion, of which only 30% was in the United States.
The euro, the official currency of the 19th centuryeuro zone countriesand some neighboring countries, it is the 8th most valuable currency in the world and the 2nd most used reserve currency. A single central bank (theEuropean central bank) controls the currency and directs monetary policy in the eurozone.
Partly due to the fact that it is used in economically developed countries, the euro has become one of the most valuable currencies in the world over the past decade. About 25 nations have pegged their currencies to the euro.
One of the world's most expensive currencies, the euro is the second most traded currency after the US dollar, with the EUR/USD currency pair accounting for around 25% of daily trading activity.
The euro exchange rate against the dollar was initially high, but due to bad economic and political circumstances in several European countriesespecially Greece, began to decrease over time.
Despite being one of the strongest currencies in the world, the euro is one of the youngest, having emerged after the founding of the European Union.
One of the five reserve currencies and a traditional "safe haven currency", the Swiss franc is the seventh most valuable currency in the world.
Legal currency is one of the most stable currencies in the world as it is vulnerable to minimal inflation and appreciates against other currencies in times of chaos or political instability. For this reason, the franc is often used to hold cash or for transactions abroad.
Switzerland is one of the richest nations with strict monetary policies and low levels of debt, making the Swiss franc a safe bet for investors.
As one of the strongest currencies in the world, the Swiss franc is also the official currency of many other nations, including Haiti, Liechtenstein and Campione d'Italia (an Italian enclave surrounded by Switzerland).
As the UK is one of the five largest economies in the world, the British Pound is the sixth most valuable currency in the world. In 2021 orcountry's economic growthwas the highest among advanced nations, up 7.5% year-on-year.
The British Pound is not only one of the most expensive currencies in the world, but also the fourth most popular reserve currency after the US Dollar, Euro and Japanese Yen.
Since the British Empire stretched across the globe until the First World War, the Pound Sterling is the oldest currency.
As the official currency of the British Overseas Territories, including Northern Ireland, Gibraltar and Maine, the pound sterling has helped to remain one of the most valued currencies in the world.
In addition to Great Britain, three other dependent territories use the pound sterling as a parallel currency: Guernsey, Jersey and the Isle of Man.
Dealers usually refer to theGBP/USD-Pair como "Cabo",after the first transatlantic communication cable connecting the United Kingdom and the United States. It is the third most traded currency pair in the forex market after EUR/USD and EUR/JPY.
The pound sterling is Europe's most valuable currency, accounting for around 12.8% of daily transactions on the foreign exchange market. Historically, the pound was worth more than the US dollar, but it started to lose ground in the 20th century.
In the 1980s, however, the British pound regained its edge over the US dollar as one of the strongest currencies in the world.
5.Cayman Islands Dollar
The Cayman Islands Dollar, the legal tender of the British Overseas Territory, the Cayman Islands, is the fifth most valuable currency in the world due to favorable offshore laws.
Financial and tourism services are well developed in the Cayman Islands, generating 70% of GDP, but the main reason why the KYD is one of the highest performing currencies in the world is its reputation as one of the world's top tax havens for businesses and individuals. . .
In addition, the country is one of the top five offshore financial centers and issues business licenses to many banks, hedge funds and insurance companies.
The Cayman Islands dollar also owes its status as one of the strongest currencies in the world to its parity with the US dollar.
Although the Jordanian economy is one of the poorest in the Middle East, the Jordanian dinar isconnected to SDR, the IMF's unit of account, is the fourth highest currency in the world.
The nation is a developing market that lacks natural resources and faces chronic unemployment, inflation and foreign debt.
However, the Jordanian dinar entered the “stronger currencies” discussion in 1948 when it was pegged to the US dollar at the rate of 1 dinar = $2.19 USDto adoptan International Monetary Fund (IMF) fixed rate system.
This relationship lasted until 1995, when Jordanawaketo the General Agreement on Tariffs and Trade (GATT). The dinar was then pegged to a basket of currencies until it was re-pegged to the dollar in 2001 at a rate of 1 dinar = $1.42.
Oman's vast oil reserves, like those of other Gulf nations in the Middle East, contribute to the Omani rial's position as the third highest currency in the world.
Although Oman's economy depends on the sale of oil, the government is trying to diversify income by promoting gas exploration, metallurgy, tourism and agriculture.
One of the most valuable currencies in the world, the Omani Rial was introduced in 1970 under the name "Saidi Rial" and has been pegged to the US Dollar since 1973.
One of the most expensive currencies in the world, the purchasing power of the Omani riyal is so high that the government created 0.25 and 0.5 riyal notes.
The Omani rial has maintained its status as one of the strongest currencies in the world as a result of historically tight monetary policies. To control conflicts in the Middle East, local authorities restrict the money supply, affecting the rate of inflation and the value of the currency.
Along with the US dollar, Bahrain's significant dependence on oil, which accounts for over 40% of export earnings, makes the Bahrain dinar the second most valuable currency in the world. In addition to these factors, the country promotes its banking and tourism industry and exports natural gas and aluminum.
The Bahraini Dinar was introduced in 1965 to replace the Gulf Rupee and its exchange rate has remained relatively stable since 1987.
Despite the significant impact of low oil prices on the country's economy, the annual average of the Bahrain dinar has remained close to the current exchange rate since 2011, and its exchange rate against the US dollar has not changed since 2005. , which the helps maintain your position. as one of the most valuable currencies in the world.
Kuwait's technology for the production of petroleum derivatives ischeapest in the world, making the Kuwaiti dinar the highest currency in the world. The nation has significant oil reserves, with oil exports accounting for over 95% of its revenues.
The reputation of the Kuwaiti dinar as the most expensive currency in the world is due to the stable economy of Kuwait, one of the wealthiest nations in the world. It has a low unemployment rate, no VAT and part of its export earnings goes to the National Pension Fund.
The Kuwaiti dinar was created in 1960 when Kuwait gained independence from the British Empire and was equivalent to one pound.
Historically, the Kuwaiti Dinar ranked first among the most valuable currencies in the world due to the country's significant oil exports. More than 80% of the country's wealth comes from the oil industry because "black gold" is cheap to mine.
The dinar has been pegged to a weighted basket of currencies since 2007, after being pegged to the US dollar for four years.