We have already told you about Top 10 Valuable Currencies in the World to Trade. However, have you thought about what the highest currency in the world is? Is it the US dollar, the euro, or the British Pound? No, they are not. They are the world’s most famous, most traded, and widely spread currencies. Some other currencies outperformed those three. Surprisingly, but being the most traded, the US dollar is not even in the middle of the top 10 list.
So, how to determine the most valued currency? The currencies’ strength is measured by several factors, such as currency rates, nominal gross domestic product (GDP) per capita, inflation rate, and many other economic and political issues.
To define which currency is most valued worldwide, we have compared them to the US dollar as a base currency. That is why the most valuable currencies are the ones that are the most expensive compared to USD.
Strongest currencies in the world
Foreign coins are traded in pairs. Consequently, the currency is always priced in relation to another currency, known as the "exchange rate."
Here is a recap of the most valued coins in the world:
# | Currency | USD rate | Code |
1 | Kuwaiti Dinar | 3.25 USD | KWD |
2 | Bahraini Dinar | 2.65 USD | BHD |
3 | Omani Rial | 2.60 USD | OMR |
4 | Jordanian Dinar | 1.41 USD | JOD |
5 | British Pound Sterling | 1.25 USD | GBP |
6 | Cayman Islands Dollar | 1.21 USD | KYD |
7 | Swiss Franc | 1.11 USD | CHF |
8 | European Euro | 1.08 USD | EUR |
9 | US Dollar | 1 USD | USD |
10 | Canadian Dollar | 0.74 USD | CAD |
*All data is current as of May 15, 2023.
Kuwaiti Dinar
- Country of issuance: Kuwait
- Currency code: KWD
- Exchange rate: 1 KWD = 3.25 USD
The Kuwaiti dinar is the official currency of Kuwait and the most valued currency in the world.
Kuwait is a small country situated between Saudi Arabia and Iraq. Owning large oil reserves and significant oil exports to the global market, Kuwait is one of the wealthiest counties on earth. Besides, Kuwait is a tax-free country with a very low unemployment rate.
Before, the Kuwaiti dinar was pegged to the US dollar. In 2007, the government decided to peg the Kuwaiti Dinar to the weighted currency basket.
An interesting fact:
There is a currency that could have been considered more valuable than the Kuwaiti dinar if it was officially recognized. It is the Seborgan luigino (SPL). It is used in the micronation Principality of Seborga, on the border of Italy and France. The Seborgan luigino is recognized by the regional banks but has no value outside of Seborga. So, the local rate of 1 SPL is 6 USD.
Bahraini Dinar
- Country of issuance: Bahrain
- Currency code: BHD
- Exchange rate: 1 BHD = 2.65 USD
The Bahraini dinar is the official currency of Bahrain, another country known for its oil exports more than its size.
The Kingdom of Bahrain is an island country in the Persian Gulf. The country’s wealth derives from oil and gas prices that support more than 85% of the kingdom’s revenues.
The Bahraini dinar was introduced in 1965 to replace the Gulf Rupee. Now, it is pegged to the US dollar in order to encourage foreign investments.
Omani Rial
- Country of issuance: Oman
- Currency code: OMR
- Exchange rate: 1 OMR = 2.60 USD
The Omani rial was first introduced in 1970 as the official currency of Oman and has been pegged to the US dollar since then.
Located in the Arabian Peninsula, the Sultanate of Oman has a strong economy due to the oil exports to various countries all over the world. However, the country’s revenue also benefits from tourism and agriculture.
Jordanian Dinar
- Country of issuance: Jordan
- Currency code: JOD
- Exchange rate: 1 JOD = 1.41 USD
The Jordanian dinar has been the official currency of Jordan since 1950.
Unlike the countries mentioned above, Jordan does not have oil. Yet, the Jordanian dinar is strong due to the country’s diversified economy — from trade and finance to manufacturing and mining.
The Jordanian dinar is pegged to the US dollar.
Pound Sterling
- Country of issuance: United Kingdom
- Currency code: GBP
- Exchange rate: 1 GBP = 1.25 USD
The pound sterling is the official currency of the United Kingdom, the UK Crown Dependencies and the British Overseas Territories. It is the highest currency not based in the Middle East.
It is not just the oldest currency but among the most influential ones in global trade and finance. It forms part of the basket of IMF Special Drawing Rights.
Cayman Islands Dollar
- Country of issuance: Cayman Islands
- Currency code: KYD
- Exchange rate: 1 KYD = 1.21 USD
The Cayman Islands dollar is the official currency of the Cayman Islands.
The Cayman Islands are known as the ‘tax haven’ as they offer offshore bank services for financial corporations and wealthy individuals.
The Cayman Islands dollar was introduced in 1970 and is pegged to the US dollar at a fixed rate.
Swiss Franc
- Country of issuance: Switzerland
- Currency code: CHF
- Exchange rate: 1 CHF = 1.11 USD
The Swiss franc is the official currency of Switzerland and Liechtenstein, the wealthiest countries in the world.
The Swiss franc is known as a ‘safe haven’ currency because of the countries’ stable economy, the strictest monetary policy, and lowest debt levels.
Having been introduced in 1850, Switzerland’s banknote is the only one in the world with a vertical look.
Euro
- Country of issuance: Eurozone
- Currency code: EUR
- Exchange rate: 1 EUR = 1.08 USD
The euro is the official currency of 19 European countries. Being the youngest currency, the euro is the 2nd most used and traded currency globally, both in reserve and circulation.
The euro is not pegged to any other currency, but there are about 25 countries that have pegged their national currencies to the euro.
US Dollar
- Country of issuance: United States of America
- Currency code: USD
- Exchange rate: 1 USD
The US dollar is the official currency of the United States of America and its territories. The US dollar was first introduced in 1792 and has become the world’s most used and traded currency. The US dollar has the title of a ‘World Reserve Currency.’
An interesting fact:
Of all USD in circulation, only 30% is within the USA, which means that 70% of all USD banknotes and coins are used outside of the United States.
Canadian Dollar
- Country of issuance: Canada
- Currency code: CAD
- Exchange rate: 1 CAD = 0.74 USD
The Canadian dollar is the official currency of Canada. Since Canada is connected to the US through trade, the Canadian dollar fluctuates substantially based on the ongoing value of the US dollar.
The Canadian dollar is considered strong because Canada is the world’s second-largest supply of uranium and crude oil. Thus, the Canadian dollar depends on global oil price fluctuations.
Due to the country’s political stability, the Canadian dollar accounts for 5% of daily trades in the Forex market.
An interesting fact:
The Iranian rial (IRR) is the least valuable currency in the world. Iran used to be a major oil exporter, but because of the sanctions from the USA and the European Union, Iran was deprived of access to the world’s market. Thus, the Iranian economy, along with the Iranian rial, came to decline. Nowadays, 1 IRR equals 0.00002357 USD.
Final Thoughts
Political news events and other developments bring rapid changes in the economy of countries. That is why the specific order in ranking the highest currencies might undergo changes as well. These price fluctuations in currencies can be beneficial for traders. It is easy not to miss even the minor price shifts when you trade with FBS.
FBS provides its clients with over 30 currency pairs for trading, including the strongest ones. All the currencies, their various pairs, and trading conditions can be found on the website, e.g., EURUSD contract specifications, GBPCHF contract specifications, etc.
In case you are a beginner and know little about Forex trading, FBS has an instruction for the Forex trading Demo account. This will help you learn to trade on the real market with virtual money. So, you do not lose anything.
FAQs
What are the top 10 most expensive currencies?
Here are the world’s strongest currencies:
- Kuwaiti Dinar (KWD)
- Bahraini Dinar (BHD)
- Omani Rial (OMR)
- Jordanian Dinar (JOD)
- British Pound Sterling (GBP)
- Cayman Islands Dollar (KYD)
- Swiss Franc (CHF)
- European Euro (EUR)
- US Dollar (USD)
- Canadian Dollar (CAD)
What currency is stronger than the US dollar?
Kuwaiti Dinar (KWD) is the strongest currency against USD and the most valued currency in the world due to the country’s strong economy. 1 KWD = $3.25. Data is current as of May 15, 2023.
What makes the US dollar so powerful?
The reserve currency of the globe is the US dollar. During times of monetary instability and uncertainty, investors see it as a safe haven. Additionally, the Fed’s decision to raise interest rates to combat inflation made the dollar strong because rising interest rates increase demand for the currency from foreign investors looking for yield.
What is the most traded and used currency in the world?
The US dollar is the most traded and used currency in the world. Over 70% of all US banknotes are used outside the USA. The US dollar is also a reserve currency of many countries.
