Money makes the world go round, literally. It is the medium that facilitates global trade and is the principal measure of wealth.
Currency has come a long way, from bartering to pieces of paper. The importance of exchange and value has been embedded in the intricacies of the world’s financial systems.
From the beautiful landscapes of Switzerland to the Middle-Eastern dreamscapes of Gibraltar, these are the most valuable currencies in the world.
Unsure of which currencies are the strongest? We’ll walk you through the strongest monetary units of various countries and what makes them so valuable.
Highest-Ranking and Strongest World Currencies
The highest-ranking currencies of the world are usually determined by a variety of factors, such as interest rates and a country’s economic stability. Listed below are the strongest currencies currently available in the world.
15. Indian Rupee (INR)
Conversion Rate: 1 INR = $0.014
The national currency of India, the Indian rupee is one of the lowest valued currencies on the list. Due to its flexible exchange rate, a number of factors have caused this currency to rise and fall.
In 2016 one of these factors was identified as an increase in fake currencies being circulated. This caused India to set a demonetization in place that shocked the nation.
14. Japanese Yen (JPY)
Conversion Rate: 1 JPY = $0.0091
Coming in as the third most traded currency in the world and the leading Asian traded currency is the Japanese Yen. Previously an extremely strong currency, the yen has become less valuable due to inflation.
This currency is often used as a trading strategy, using its low interest rate to purchase foreign currency with higher interest rates. This is referred to as a carry trade that investors use to profit from a low-risk investment method.
13. Norwegian Krone (NOK)
Conversion Rate: 1 NOK = $0.12
Rallying against the euro and other Scandinavian currencies, the Norwegian krone first launched in 1875. Norwegian banknotes feature designs celebrating the country’s maritime history.
The current governing party intends to remove all paper money by 2030. Interestingly, the Norwegian krone is one of the rare currencies whose value can be set by global markets rather than the national economy.
That’s largely due to the Norwegian Oil Fund, which is the largest sovereign wealth fund in the world.
12. Australian Dollar (AUD)
Conversion Rate: 1 AUD = $0.77
With a floating exchange rate since 1983, the Australian dollar is one of the most traded currencies in the world. As a fluctuating exchange rate and its reliance on its exports, the Australian dollar is influenced by the demand and price of exported commodities.
11. Canadian Dollar (CAD)
Conversion Rate: 1 CAD = $0.78
As the national currency of Canada, this monetary unit is also one of the largest reserve currencies in the world. With large quantities of crude oil and uranium supplies, this North American gem has significant export economy.
10. US Dollar (USD)
As the US dollar is the major reserve currency of the world, it’s easy to see why this high value currency has made the list.
With a wide variety of currencies pegging to the U.S. dollar, a number of commodities use this monetary unit as a standard currency. An example of this is the petrodollar system which allows countries that mainly export oil to exchange the commodity for U.S. dollars.
The United States dollar has dropped in value against the euro and other currencies in recent years. This is in part due to the explosion of national debt.
9. Swiss Franc (CHF)
Conversion Rate: 1 CHF = $1,08
Characterized as a safe haven currency, the Swiss franc is the national currency of both Switzerland and Liechtenstein. This monetary unit is a valuable currency in the forex market, as it primarily retains its value and is less volatile if the market changes rapidly.
8. European Euro (EUR)
Conversion Rate: 1 EUR = $1,19
This well-known legal tender is the official currency for various European Union countries and is the second most popular traded currency.
In 2002, Euro banknotes and coins were issued. This led to this currency being implemented to replace 12 national currencies leading to the most significant money changeover in history.
7. Cayman Islands Dollar (KYD)
Conversion Rate: 1 KYD = $1,22
Known as one of the top Caribbean islands to visit, this group of islands is a British Overseas Territory.
The Cayman Islands holds one of the top spots in the highest currency values. Often it is described as a tax haven due to the minimum tax for foreign investments.
6. Gibraltar Pound (GIP)
Conversion Rate: 1 GIP = $1,37
Located in the Iberian Peninsula, Gibraltar is known as a British Overseas Territory. Gibraltar’s currency is closely associated with the British Pound Sterling, as it holds the same currency appreciation.
The Gibraltar pound is its own curated substitute for the British pound and is valued at a ratio of 1:1.
5. British Pound Sterling (GBP)
Conversion Rate: 1 GBP = $1,37
Known as the oldest currency in the world, the British pound sterling needs no introduction. One of the most traded currencies in the world, this monetary unit is the national currency of various nations in the United Kingdom.
In the forex trade market, the biggest financial market in the world, the pair USD and GBP is one of the strongest and is often referenced as the “cable”.
4. Jordanian Dinar (JOD)
Conversion Rate: 1 JOD = $1,41
The Jordanian dinar was introduced in 1950 to replace the Palestinian pound. The local currency of Jordan uses the method of pegging to the U.S. dollar. This is in order to refrain from the unpredictable ebbs and flows of floating exchange rates.
Unlike other Middle Eastern countries, Jordan is not exclusively an oil-rich country and relies mostly on other exports as a way to gain capital.
3. Omani Rial (OMR)
Conversion Rate: 1 OMR = $2,60
The Sultanate of Oman is located in the Arabian Peninsula and uses the Oman rial as its national currency.
This country’s strong valuation is due is largely to its oil exports, including refined petroleum and crude oil, to various countries all over the world.
2. Bahraini Dinar (BHD)
Conversion Rate: 1 BDH = $2,66
The island nation of Bahrain in the Persian Gulf uses the Bahraini dinar as its national currency.
One of the strongest currencies in the Middle East, it was implemented in 1965 to replace the Gulf Rupee. The Bahrain dinar is pegged to the U.S. dollar in order to encourage foreign investments and stabilize exchange rates.
1. Kuwaiti Dinar (KWD)
Conversion Rate : 1 KWD = $3,32
The national currency of Kuwait, the Kuwaiti dinar is the most valuable and expensive monetary unit in the world. This small country is one of the biggest oil suppliers in the world, which generates a big part of the governments’ annual income. It is also virtually a tax-free country.
Interestingly, the Kuwaiti dinar is pegged to an undisclosed currency basket. This is where the currency of a country is controlled by another country’s currency.
Here’s a recap of the most valuable currencies in the world:
- Kuwaiti Dinar
- Bahraini Dinar
- Omani Rial
- Jordanian Dinar
- British Pound Sterling
- Gibraltar Pound
- Cayman Islands Dollar
- European Pound
- Swiss Franc
- US Dollar
- Canadian Dollar
- Australian Dollar
- Norwegian Krone
- Japanese Yen
- Indian Rupee
Final Thoughts on The Strongest Currencies in the World
The foreign exchange market is quite unpredictable, with fluctuating rates. The only constant is the promise of change.
The value of currencies is always changing and its lack of stability is what sparks the thrill of investing in this market.
If you’re looking to try your luck in the forex market, there are a variety of trading strategy books available to equip you for your journey.
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