The most popularly traded currency pairs include major crosses such as EUR/USD, USD/JPY and GBP/USD, which represent wealthy, well-established economies across the world. The New Zealand dollar or NZD takes its rightful place on the highest tender list at number 15. By 2022, it became the seventh most traded currency in the global exchange market, representing 6.2% of the daily volume. Fast forward to 2022, it has ascended to the 10th position, representing 2.4% of the global foreign exchange market turnover. In the complex world of economics, currencies act like threads that weave nations together. Understanding the strength of a currency is akin to deciphering the heartbeat of a country’s economic health.
- Exchange rates affect the cost of goods and services in a foreign currency.
- This decision by the Swiss Central Bank (SNB) contained the rapidstrengthening of the Franc after the abolition of the fixed rate from the Euro.
- The economies of these countries ensure high demand and value of their currencies in the international market.
- Continue reading for our list of the 10 most expensive currencies in the world, which includes the nations that use them, their values, and their unique histories.
- A single US dollar will buy you around 0.76 Gibraltar pounds, which is very similar in value to the pound sterling.
We’ve produced a guide explaining the basics of foreign exchange movements. However—perhaps surprisingly—the greenback is not the strongest of the 180-odd traditional fiat currencies recognized as legal tender worldwide. A fiat currency is money that has a value not tied to a physical commodity like gold or silver.
United States Dollar
The New Zealand dollar or NZD takes its rightful place on the strongest tender list at number 15. Its strength has been rising, most likely caused by the nation’s political stability, high interest rates and GDP growth. When measuring the value of one currency against another, you are simultaneously buying one tender and selling another. All of the currencies in our list are quoted in exchange for a single US dollar. See our trading fees for more information and view our spreads and margin rates below for major, minor, and exotic pairs.
The Kuwaiti dinar is the highest-valued currency in the world, with impressive conversion rates against the dollar. It was introduced into Kuwait’s legal system in 1960, replacing the Gulf rupee. Initially, the Kuwaiti dinar had an equivalent value to the pound sterling. The Bahraini dinar has been pegged to the US dollar since 1980 at roughly $2.65 for every BHD.
Canadian Dollar
The government also follows conservative fiscal practices to maintain the peg, helping AWG remain one of the stronger currencies in the Caribbean region. As well, New Zealand’s clean energy initiatives and advances in technology have helped to maintain confidence in the dollar from an investor’s standpoint. The NZD might not be as strong as the AUD; however, it is still among the stronger currencies when compared to the Indian Rupee. And as the major importer of Canadian oil is the neighboring US,CAD also correlates to USD value rise-and-falls.
What are the top 15 strongest currencies in the world?
Canada also benefits from having a very strong banking system, minimal levels of corruption, and strong trade ties to the US (its largest trading partner). Investors also consider CAD a “commodity currency,” and its performance often mirrors trends in the global commodities market. The Australian dollar is also the 5th most traded on the forex market and accounts for around 6.8% of daily trades. Some reasons for why the AU dollar is so popular include its stability, high-interest rates, and the view that it holds diversification benefits. The foreign exchange market, where currencies are traded, shows continuous adjustments driven by real-time data and global economic dynamics.
Its high value and stability is due to several important aspects of Oman’s economy and financial policies. Yet, while currencies like the euro and pound are generally stronger than their counterparts, they will go through periods of weakness, which is what trading is about. As a result, the euro has a reputation of being relatively stable owing to its popularity in the financial markets. Yet, the country’s economy is well-diversified, excelling in finance, transportation, communication, construction, mining, and manufacturing.
Omani riyal (OMR)
The stability of its currency contributes to the territory’s economic activities. Investors tend to hoard Swiss francs during economic downturns, meaning they will always be sought-after. Consequently, it is the seventh-most valuable and seventh-most traded currency in forex. The British pound is the fifth-strongest currency in the world, with 1 pound buying 1.22 dollars (or $1 equals 0.82 British pound). The Jordanian dinar is the fourth-strongest currency in the world, with 1 dinar buying 1.41 dollars (or $1 equals 0.71 Jordanian dinar). The Omani rial is the third-strongest currency in the world, with 1 rial buying 2.60 dollars (or $1 equals 0.38 Omani rial).
British Pound (GBP)
The Omani Rial closes the top three of most expensivecurrencies in the world with the conversion rate of 2.60 USD to one Rial –nearly double the value of the British Pound. Before Bahrain became one of the leading oil-producingcountries, the major profit-gaining industry here was pearl mining. However, inthe 1930th the production ceased due to pearl cultivation in Japan. Bahrain is a Persian Gulf Island state with a population ofjust over 1 million people. As with Kuwait, its largest source of income is theglobal gas and petroleum export.
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(tie) Euro (EUR)
Owing to the US economic leadership, it gained the title of theprimary “World Reserve Currency.” It has the highest demand and is involved inmore than 85% of daily forex trades. The Australian dollar is also the 6th most traded on the forex market and accounts for around 6.8% of daily trades. Some reasons why the AUD is so popular include its stability, high-interest rates, and the view that it holds diversification benefit. Known as the strongest currency in the world, the Kuwaiti dinar or KWD was introduced in 1960 and was initially equivalent to one Arbitrage forex 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. The United Nations recognizes around 180 as legal tender but which one holds the most value?
That’s mainly because Jordan pegs its currency to the USD at a stable rate, which supports its value. It’s not only just oil money (although this does significantly contribute), as Kuwait has one of the largest oil reserves in the world and also exports very large amounts of oil. Euro is one of the most widely used currencies in the world.It is the second most traded currency on the forex market after the US Dollar. The world’s second most valuable currency is the BahrainiDinar, with a conversion rate of $2.66 per one Dinar. It is pegged to the USDollar, and its exchange rate against the USD remained stable since 1987. The Swiss franc (CHF) is considered to be one of the safest currencies in the world by many investors and is often used as a safe-haven.
- Most currencies are “floating,” meaning their value fluctuates depending on demand and supply.
- The 8th most expensive currency in the world is the Cayman Islands dollar or KYD, which is the national currency for the Cayman Islands.
- Political instability and weak economic performance can affect the value of a currency, particularly during events such as presidential elections or recessions.
- 1 US dollar is exchangeable for around 0.71 Jordanian Dinar, earning the JOD a rightful place in the top 5 most valuable currencies.
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