Top 10 strongest currencies in the world

The United Nations has recognized 180 currencies of different countries as legal tender. And each currency’s value is determined the same way as any other good or service. The demand and supply market economy determines currency strength or currency appreciation and depreciation. Thus, a currency’s popularity and wide usage do not necessarily mean it is high in value or the strongest.

When we think about the strongest currencies in the world, we immediately think of the US dollar or the British pound. Although they may be widely used currency, they are not the most valuable currencies in the world. The highest currency in the world is determined by its high value when traded for INR. Therefore, the currency strength plays a fundamental role in influencing the country’s stand in world politics and the global economy.

In this blog, we shall put a spotlight on the top 10 highest currencies in the world and factors that make a currency strong or weak. 

What makes a currency strong or weak?

A country’s currency strength is how much money it can buy with its own money. It is measured by how many goods or services it can get for one unit of its own money.

For example, if the USD dollar is worth half the Euro, the Euro will be considered stronger. Alternatively, the USD is considered weaker than the Euro. So, it would be easier for someone from France to afford a vacation in the US than a person from the US to afford a vacation in France. Also, a product or service in France would cost more for an American and vice versa.

Thus, a currency’s strength can be determined by several factors, including:

• Demand and supply in the foreign exchange market
• Central Bank’s interest rates
• Growth and inflation of the economy
• Country’s balance of trade (difference between exports and imports of a country in a particular period)

Top 10 Highest Currencies in the World

To compare the value of the currencies, we have used the INR as the base currency. The strongest among all country currencies is the one that is the most expensive currency in the world compared to the INR. Also, since USD is one of the most widely used currencies, we have added the value of the most influential currencies in the world compared to USD.

*Currency rates as of 11 Sept, 6:52 am UTC.

World’s Strongest Currencies

Must Read: Top 10 cheapest currencies in the world

10. United States Dollar (USD)

The world’s most traded currency, the United States Dollar (USD), makes it to the top 10 highest currencies in the world. The USD to EUR rate is the most commonly used US Dollar exchange rate. Although not regarded as the most expensive currency in the world, the USD is the primary reserve currency due to its high trade volume.

9. Euro (EUR)

The Euro (EUR) is the official currency of 20 out of 27 EU member countries of the European Union (EU). The Euro is one of the costliest currencies in the world and also the second-most-used currency worldwide. Currently, one Euro is valued at 88.96 INR.

8. Swiss Franc (CHF)

The Swiss Franc (CHF) is the official currency of Switzerland, Liechtenstein, and the Italian exclave of Campione d’Italia and was introduced in 1850. Since Switzerland is one of the most stable countries, the CHF stands at the 8th in terms of value in the world currency list. Due to low inflation rates and a stable economy, the Swiss Franc is considered among the safe haven currencies.

7. Cayman Island Dollar (KYD)

The Jamaican Dollar was used as the official currency of the Cayman Islands till 1972. It was then replaced by the Cayman Islands Dollar (KYD) at par. The KYD is one of the Caribbean’s strongest currencies and a strong emerging market currency globally.

6. Gibraltar Pound (GIP)

The Gibraltar Pound (GIP) is the official currency of the British overseas territory of Gibraltar and is also one of the most valuable currencies in the world. It is pegged at par value to the British pound (GBP); hence, both the GBP and GIP are acceptable in Gibraltar. The economy of Gibraltar primarily depends on the sectors like tourism and e-gaming.

5. British Pound (GBP)

The British Pound Sterling, or the GBP⁠, is the official currency ofin the United Kingdom and its territories. It is not only one of the most expensive currencies in the world but also the oldest currency still used as legal tender. GBP has one of the highest trading volumes. The most common trading pairs involving the GBP are the Euro (EUR/GBP) and the US dollar (GBP/USD).

4. Jordanian Dinar (JOD)

Jordan used the Palestinian pound as its official currency until 1949. In 1950, the Jordanian Dinar (JOD) replaced the Palestinian pound. The dinar has smaller denominations or subunits. Ranked as the 4th most powerful currency in the world, 1 JOD equals 117.06 INR.

3. Omani Rial (OMR)

Omani Rial (OMR) is the official currency of Oman. The Indian rupee (INR) and the Maria Theresa were used as national currencies. Later, the Saudi Riyal was the official currency of Oman in 1970 when it replaced the Gulf Rupee. In 1973, the Omani Rial replaced Saudi Riyal to become the country’s official currency. Oman’s economy relies predominantly on oil reserves, and the currency is considered one of the highest currencies in the world.

2. Bahraini Dinar (BHD)

Located in the Arabian Gulf, Bahrain holds the second costliest currency in the world, the Bahraini Dinar. The currency replaced the Gulf Rupee in 1965, and in 1980, it was pegged to USD with IMF’s special drawing rights. Indians are Bahrain’s largest expat group, and INR to BHD is quite commonly used. The value of 1 BHD equals 219.87 INR, making it the second most expensive currency in the world.

1. Kuwaiti Dinar (KWD)

The Kuwaiti Dinar is the official currency of Kuwait and the costliest currency in the world. It was introduced in 1961 by replacing the Gulf Rupee and was equivalent to the British Pound. Since Kuwait has proven to be the world’s largest crude oil reserves, the Kuwaiti Dinar (KWD) is commonly used in oil-based transactions in the Middle East. KWD is the most valuable currency in the world as 1 Kuwaiti Dinar is 268.72 INR (Indian Rupees). It remains the world’s most powerful currency, owing to Kuwait’s economic stability.

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Must Read: 7 key factors that influence foreign exchange rates

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Frequently Asked Question

• What is the top 20 highest currency in the world?

• Which is the lowest currency?

The Iranian Rial is the world’s lowest currency. 1 INR equals 509.07 Iranian Rial as of 11 Sep 2023.

• Is the US Dollar the strongest currency in the world?

The US Dollar is certainly the most-traded currency, but the Kuwait Dinar is the strongest currency in the world.

• Which is the most stable currency in the world?

The Swiss franc (CHF) is generally considered the most stable currency among all the countries and their currencies. It is also considered a safe-haven currency.

• How often does the exchange rate fluctuate?

Exchange rates fluctuate or move constantly based on various factors like the country’s economic conditions, supply, and demand market forces, changing monetary policy, or if it is a fixed currency, then the value of another currency or a basket of currencies, etc.

• What are the seven major currency pairs? 

The seven major currency pair includes:

1. Euro and US dollar (EUR/USD)
2. US dollar and Japanese yen (USD/JPY)
3. British pound sterling and US dollar (GBP/USD)
4. US dollar and Swiss franc (USD/CHF)
5. Australian dollar and US dollar (AUD/USD)
6. US dollar and Canadian dollar (USD/CAD)
7. New Zealand dollar and US dollar (NZD/USD)

Disclaimers:

This article is intended for informational purposes only. All details are accurate at the time of publishing. Instarem has no affiliation or relationship with products or vendors mentioned.