The Highest Currencies in the World

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 if a currency is valuable? 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 the highest currencies in the world, 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.

The world’s strongest currencies

Here is a recap of the highest currencies in the world:

*All data is current as of July 29, 2022.

Kuwaiti Dinar

The Kuwaiti dinar is the official currency of Kuwait and the most valuable 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.

Bahraini Dinar

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 comes from the oil and gas industry, which supports 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

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

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.

Cayman Islands Dollar

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. 

Pound Sterling

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.

Swiss Franc

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

The euro is the official currency of 19 European countries. Being the youngest currency, the euro is the 2^nd most used 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

The US dollar is the official currency of the United States of America and its territories. The US dollar was first introduced in 1972 and has become the world’s most used and traded currency. The US dollar has a title of a ‘World Reserve Currency.’

Canadian Dollar

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.

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 is the highest currency in the world?

Kuwaiti Dinar (KWD) is the most valuable currency in the world due to the country’s strong economy. 1 KWD = $3.26.

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.

What is the world’s most stable currency?

The Swiss franc (CHF) is the most stable currency in the world. Switzerland has the lowest debt level and sound monetary policy, which make the country’s economy extremely strong. Due to all these factors, CHF is often called a ‘safe haven’ currency. 1 CHF = 1.04 USD.