There are many different currencies in the world, which are used by different countries. Whenever you are thinking about the highest currencies or the most valuable currencies in the world you must be thinking about US dollar or British pound or Euro. However, this is not the case and to your surprise the most expensive and the most valuable currency is in the year 2022 are none of the above.
Furthermore, these currencies are not always related to the wealthiest nations of the world. The benchmark, which is used to entitle a currency as the most valuable currency of the world depends upon the high value of them when they’re exchanged with United States dollar. This makes United States dollar as one of the most traded and strongest currency in the world.
In this blog, we are going to discuss some of the most valuable currency in the world.
- Kuwaiti Dinar:
Kuwaiti Dinar is known to be as the strongest currencies in the world. They are also known as PWD, they were introduced in the year 1960, and initially they were equal to £1. It is a small country which is located in the Middle East. Kuwait is in between Iraq and Saudi Arabia. The wealth of Kuwait is largely being driven by its large global oil reserves. You can receive 0.30 Kuwaiti Dinars in exchange of one US dollar. This makes it the world’s highest valued currency or simply strongest currency in the world.
- Bahrain Dinars:
Bahrain Dinars are the second most powerful currency in the world. Bahrain Dinars are divided into thousand smaller currency units, like all other currencies of the Arab countries. The smaller units are called ‘fils’. This currency is only used in Bahrain and it is pegged against the US dollar.
One US dollar is equal to almost 0.38 Bahraini dinar.
- Omani Rial:
Omani Rial is the third strongest currency of the world. It is the national currency of Oman, like all other Arab countries Omani Rial is split into 1000 smaller divisions which are known as Baisa. Omani Riyals increased in value only after it was introduced you to the success of oil export by Oman, and it is pegged against the US dollar.
One US dollar will be equal to around 0.38 Omani Riyals.
- Jordan Dinar:
Jordan Dinar is the national currency of Jordan. It is also known as JOD. It is the fourth strongest currency in the world. It became as the official currency of Jordan in the year 1950 after it replaced the Palestinian pounds.
One US dollar is equal to around 0.79 Jordanian Dinar.
- Pound sterling:
The British pound is the pound sterling is the fifth most valuable currency is in the world. It is one of the most used currencies of the world. It is regarded as one of the oldest currencies that are still in use. However, it is not the strongest currency of the world. It is the strongest currency that is really used. Furthermore, globally, it is the fourth most traded currency around the world.
One single US dollar is equal to around 0.75 Great Britain pounds. The currency pair US dollar and Great British pounds is known as cable and collectively, it is known as the third most traded currency pair in the world.
- Gibraltar pound:
The Gibraltar pound or GIP is known as the six most valuable currency in the world. It is the national currency of Gibraltar, and it can be exchanged with the British pounds’ sterling at same value. Therefore, in Gibraltar, one can use Great Britain pound or Gibraltar pound.
One single US dollar convert into 0.81 Gibraltar pounds.
- Cayman Islands dollar:
Cayman Island dollar is the seventh strongest currency of the world also known as KYD. It is the national currency of Cayman Islands. The Cayman Islands are basically autonomous British territory, which is located in the Caribbean. Cayman Island is supposed to be a major financial tax heaven for companies and businessmen. One United States dollar will exchange into around 0.83 Cayman Island dollars. This makes it the only strongest Caribbean currency on the list.
Euro is the currency, which is widely being used. It is one of the newest currencies and it is almost used in 19 countries of the world. This makes it one of the most widely used official currency in the world. It is used in different countries including Germany, France, Spain and Italy. Euro is known to be as world’s second reserve currency and the second most traded currency on foreign exchange market after US dollar. The euro and US dollar pair is the most traded pair on forex in the world.
One US dollar will exchange into around €0.90. It is the 8th strongest currency of the world.
Euro as currency:
|Principality of Monaco||Western Europe|
|French Guiana||South America|
|Saint Pierre and Miquelon||North America|
|San Marino||Southern Europe|
|Vatican City||Southern Europe|
|French Southern and Antarctic Lands||Antarctica|
|Åland Islands||Northern Europe|
- Swiss franc:
Swiss franc is also known as CHF. It is the official currency of both Switzerland and Liechtenstein. When US dollar will convert into around 0.98 Swiss Franc. Switzerland is one of the most wealthy and stable countries of the world. Switzerland also contributes as a safe haven for currency investors during period of economic instability.
This makes Swiss Franc as the ninth, strongest currency, and seventh most traded currency in the world.
- United States dollar:
United States dollar is the currency which is used in United States and several other countries as well. It serves as world primary reserve currency, and it is used by most of the central banks and commercial banks around the world. The US dollar account for around 88.3% of daily exchange in foreign exchange market.
It is the 10th strongest currency of the world, however, it is the currency of the world’s richest country. It is used as a relative benchmark to compare all the other currencies of the world.
The following countries and territories use U.S. dollars instead of their own unique local currency:
- Puerto Rico
- El Salvador
- Turks and Caicos Islands
- U.S. Virgin Islands
- British Virgin Islands
- Marshall Islands
- American Samoa
- Federated States of Micronesia
- Northern Mariana Islands
- Caribbean Netherlands
How Currency value is determined?
Market currency value is determined like any other good or service in a market economy – through supply and demand. Factors affecting supply and demand are regulated by the government through monetary and fiscal policies. The factors affecting currency value are as under:
- Interest rate
- Capital Flow
- Money Supply