10 Strongest Currencies in the World
It can be fascinating to know that currencies used by nations of the world are not born the same and are stronger than one another even though they are either coins, notes or made from polymer.
And while we like to get the most out of our monies, even if it is just some tiny bits, it is very important to know that stronger currencies offer more buying power as opposed to lower currencies which have lower buying powers.
In this post, we highlight the 10 strongest currencies in the world. Before we proceed, brace yourself for a shocker as you might be left wondering how some of the currencies on the list made it when their countries are not a world power.
The 10 Strongest Currencies in the World
Below is a list of the strongest countries in the world using data from FXSSI and some other reliable independent organizations:
10. US Dollar
Surprisingly, the United States Dollar is the world’s 10th strongest currency in the world. As the name implies, it is the currency of the United States of America and it is the world’s most popular currency and undoubtedly the most traded currency in the world.
The United States Dollar is the world’s unconstitutional currency and holds the title of the world’s most reserve currency. Ironically, the United States Dollar is the weakest and least strong currency among the 10 strongest currencies in the world.
9. Swiss Franc – (1 CHF – $1.01 USD)
The official currency of Switzerland and Liechtenstein, the Swiss Franc is the ninth strongest currency in the world.
One Swiss Franc (1 CHF) converts to roughly $1.01. While this may not exactly be the best or strongest conversion rate to the USD, the Switzerland and Liechtenstein currency somehow finds a way to make just above the USD.
Switzerland, a landlocked country at the confluence of Western, Central and Southern Europe is one of the richest countries in the world and its banking and finance sector is pretty strong.
Another thing worthy of note is that Switzerland has some of the world’s strictest monetary policies and lowest debt levels; all of which have contributed greatly to attracting investors to the country.
The Swiss Franc (CHF) is the sixth most traded currency in the world.
8. Euro (€1 Euro = $1.04 USD)
The Euro, adopted on January 1, 1999, is the primary currency of the European Union. This means the Euro is the official currency of 19 out of 28 member countries of the EU.
The Euro first rolled out virtually in the form of traveller cheques, electronic bank transfers, and physical notes before its coins appeared a few years later in 2002.
7. Cayman Islands Dollar ($1 KYD = $1.20 USD)
The Cayman Island Dollar (KYD) is surprisingly stronger than the United States Dollar and the Euro!
The Cayman Islands is known as a haven for foodies and known for being one of the best tax havens in the world.
The Cayman Islands provide banking licenses for some of the biggest banks, insurance companies and hedge funds around the world.
The Cayman Islands Dollar (KYD) replaced the Jamaican Dollar the islands had been using in 1972 and had since gone ahead to become one of the strongest currencies in the world.
6. British Pound Sterling (£1 GBP = $1.20 USD)
The British Pound Sterling (GBP) is the sixth strongest currency in the world. The British Pound is the official currency of the United Kingdom.
Unlike the United States Dollar, the British Pound or Pound Sterling is often mistaken to be the world’s strongest currency. Strangely, it falls short of four Arabian currencies, all of which will be mentioned on this list.
The United Kingdom’s decision to break away from the European Union has somewhat impacted the Pound Sterling negatively over time.
The Pound Sterling is the oldest independent currency in the world and one of the most used across the world. It was first used in 1489.
5. Gibraltar Pound (£1 GIP = $1.23 USD)
The Gibraltar Pound (GIP) is the official currency of Gibraltar, a British Overseas territory on the Southern Coast of Spain.
While you can use the Gibraltar Pound on its own as a currency, you can also exchange it with the British Pound at the same rate or level. And just like the British Pound, the Gibraltar Pound is aesthetically pleasing and identical to the British Pound.
4. Jordanian Dinar (د.ا1 JOD = $1.41 USD)
The Jordanian Dinar (JOD) is the official currency of Jordan, an Arab nation situated in Western Asia or the Middle East. The country is located on the bank of the River Jordan.
The Jordanian Dinar was introduced in 1949 to replace the Palestinian Pound and has been pegged by the United States since 1995, a move that has made the Jordanian Dinar one of the world’s strongest currencies.
However, despite being the fourth-strongest currency in the world, the Jordanian Dinar is only used in Jordan and nowhere else in the world.
3. Omani Rial (ر.ع1 OMR = $2.60 USD)
The Omani Rial (OMR) is the third strongest country in the world. It is the official currency of Oman, an Arab nation located in the Middle East or West of Asia.
The Omani Rial was first introduced in 1973 and has since witnessed a significant rise in value owing to the country’s successive oil supply and like the Jordanian Dinar, is also pegged by the United States.
The purchasing power of the Omani Rial was so high that the Oman government had to introduce 1/4 and 1/2 Rial banknotes.
2. Bahraini Dinar (.د.ب1 BHD = $2.65 USD)
The Bahraini Dinar (BHD) is the second strongest currency in the world and it is the official currency of Bahrain. The Bahraini Dinar was first introduced in 1965.
Bahrain is also an Arab nation situated in the Persian Gulf of the West of Asia or the Middle East and the country is renowned for its groves of date palms. However, oil exports account for the wealth of the country.
Just like the Jordanian Dinar and the Omani Rial, the Bahraini Dinar is also only used in Bahrain and is also pegged by the United States.
1. Kuwaiti Dinar (د.ك1 KD = $3.26 USD)
The Kuwaiti Dinar is the strongest currency in the world. It is the official currency of the State of Kuwait, a Middle East country located in West Asia.
The Kuwaiti Dinar was first introduced in 1961 after Kuwait gained its independence from the United Kingdom. Since its introduction, the Kuwait Dinar has waxed stronger in value and has since become the world’s most powerful currency.
The Kuwaiti Dinar, unlike other Arab currencies on the list, has been pegged to several currencies in the past. Like the others, it was also pegged to the United States Dollar but only for a limited period of time, specifically from 2003 to 2007.
It was recently pegged to an unnamed basket and can only be used in Kuwait and nowhere else in the world.
10 Strongest Currencies in the World
Below is a recap of the 10 strongest currencies in the world:
|Currency||USD Conversion Factor||Currency Code||Symbol|
|Kuwaiti Dinar||$3.26 USD||KD||
|Bahraini Dinar||$2.65 USD||BD||.د.ب|
|Omani Rial||$2.60 USD||OMR||ر.ع|
|Jordanian Dinar||$1.41 USD||JOD||د.ا|
|Gibraltar Pound||$1.25 USD||GIP||£|
|Pound Sterling||$1.20 USD||GBP||£|
|Cayman Islands Dollar||$1.20 USD||KYD||$|
|Swiss Franc||$1.01USD||CHF||CHf, Fr., SFr.|
|United States Dollar||USD||$|
Why Do Countries Peg Currencies?
A currency peg is a country’s government policy in which is exchange rate with another currency is fixed regardless of whatever happens. Countries peg currencies with other nations in order to foster hedge funds inflation, trades and foreign investments. If currency pegs are properly executed, they increase trades and incomes for both countries.