Which currency pops into your mind when you hear of the strongest currency in the world?
The United Nations has recognized 180 currencies as legal tender. Which among these might be the strongest?
But before that, what makes a currency strong?
Only the popularity doesn’t make any currency strong. Besides, various factors, including demand and supply in the foreign exchange market, the country’s GDP, inflation, economic stability, broadly impact the strength of a currency.
|Name of Strongest Currency in the world||Conversion in USD|
|15. New Zealand Dollar||0.70|
|14. Australian Dollar||0.73|
|13. Brunei Dollar||0.74|
|12. Singapore Dollar||0.74|
|11. Canadian Dollar||0.79|
|10. US Dollar||1|
|9. Swiss Franc||1.10|
|7. Cayman Islands Dollar||1.20|
|6. Gibraltar Pound||1.37|
|5. Pound Stirling||1.38|
|4. Jordanian Dinar||1.41|
|3. Omani Rial||2.60|
|2. Bahraini Dinar||2.65|
|1. Kuwaiti Dinar||3.32|
Strongest Currency in the World in 2021
Here is a short description of the 15 strongest currencies in the world.
15. New Zealand dollar
Holding 15the position on our list of strongest currencies in the world is the New Zealand dollar. Its ISO code is NZD and was introduced in 1967.
Besides Newzealand, it is also the official currency of the Cook Islands, Niue, Tokelau, and the Pitcairn Islands.
According to Financial Economy, it is the 10th most traded currency in the world stock market.
Its high monetary value is because of the country’s political stability, high-interest rates, and growth in GDP.
The exchange rate of 1 NZD in USD is 0.70, which implies you will get 0.7 USD for 1 NZD.
14. Australian dollar
The Australian dollar is the national currency of Australia and the official currency in some other parts of pacific island states that do not have their own fiscal policies and currency.
Similarly, AUD has a conversion rate of 0.73 against USD. And, it is also the most traded currency accounting for a trading volume of 6.8%.
It is the fifth most traded currency according to Forex Market.
Australia exports various commodities and minerals like coal and iron, and therefore it remains one of the great exporters.
This adds value to AUD as commodity trading volume and prices play an influential role.
13. Brunei dollar
Next on the list, we have the Brunei dollar, the official currency Sultanate of Brunei since 1967. Apparently, after an agreement with Singapore, both the currencies have same value since the ’70s.
Besides the same conversion rate, any currencies can be used in these countries as both currencies are legal tender in them.
If exchanged against USD, one Brunei dollar is equivalent to 0.74 USD.
12. Singapore dollar
The Singapore dollar is the official reserve currency of Singapore with ISO code SGD. As mentioned earlier, SGD is used in Brunei as well.
It is one of the powerful currencies in the world, and the credit goes to Singapore’s competitive economy with substantial foreign investment and low tax rates.
The conversion rate of the Singapore dollar is 0.74 against the USD. That means $1 will buy you 1.35 SGD.
11. Canadian dollar
The Canadian dollar is the currency of Canada which ISO code is CAD. Besides, it is one of the most stable and best-performing currencies among G10 (group of 11 nations with similar economic interests).
The legal and political stability, vast reserves of crude oil, and the large uranium supply contribute largely to the country’s economy and, consequently, to its currency.
Likewise, The Canadian dollar is one of the most traded currency holding 6th position as most traded currency.
Similarly, forex indicates its daily trading volume to be 5%.
Likewise, the exchange rate of 1 CAD 0.79 USD.
10. US dollar
You might have guessed the US dollar to be on top of our list of the strongest currency in the world, but here it is holding 10th position.
However, it surely is the most popular and most traded currency with a trading volume of $2.9 trillion a day in the forex market.
Moreover, it is involved in 88.3% of global forex trades and was recognized as the “World Reserve Currency” after the Breton Woods agreement.
USD has high demand because of its global acceptance, and the demand and circulation increase its face value.
Similarly, the country’s high GDP and high supplies of commodities also contribute to its value.
9. Swiss franc
Next on our list of the strongest currencies in the world is the Swiss franc, which is the official currency of both Switzerland and Liechtenstein!
The Swiss franc is one of the most stable and the most traded currency in the world, making above 5% of all global forex Market.
The conversion rate of 1 CHF is roughly 1.1o against the US dollar.
Furthermore, Switzerland has one of the strictest mechanisms in banking and financing. And, its monetary policy and low debts make CHF a safe bet for trading and storing currency.
Moreover, the Swiss franc is not much affected by Inflation.
The Euro is the newest currency that was primarily adopted in the Eurozone in 1999. It is the official currency of 19 among 27 European Union member countries.
Since the currency is used in most of the Eurozone, it is considered the second most dominating currency overall in Europe. Also, it is the second world reserve currency.
It is the most traded currency in world stock after USD and is responsible for 32% of all global forex trades.
Additionally, Euro was introduced to flourish and increase trade among the European nations to flourish the economy.
The exchange rate of 1 Euro is 1.18 against USD.
7. Cayman Islands dollar
Next on our list of the strongest currencies in the world is the Cayman Islands dollar, a Caribbean currency of the Cayman Islands.
Cayman Island is an autonomous territory of Britain which is considered a tax haven, a major reason to attract corporates and individuals.
In 1972, the Cayman Islands dollar replaced Jamaican dollars. The country grants licenses for banks, hedge funds, insurance companies, and other financial intuitions.
Its ISO code is KYD, and the conversion rate is 1.20 USD for 1 KYD.
6. Gibraltar pound
In 6th position of our list of the strongest currency in the world is Gibraltar Pound. It is the official currency of Gibraltar printed by the Government of Gibraltar.
The currency can be exchanged with the British pound at face value, and the currency looks the same to a much extent.
Similarly, the exchange rate against USD for one GIP is 1.37.
5. Pound sterling
The Pound sterling is the official currency of England, Scotland, Wales, and Northern Ireland.
It is the oldest currency in circulation as it was used during the British colonial period and therefore circulated in the whole British Empire. Similarly, it was first used in 1489.
Apart from that, it is also one of the most traded currencies in the world, with a rough trading volume of $422 billion per day and accounting for 12.8% of global forex trades.
In addition, The GBP/USD pair, also known as the “cable,” and is the third most traded pair in forex trading.
However, the power of the GBP has declined after Brexit (withdrawal of the United Kingdom from the European Union). The exchange rate is 1.38 USD for 1 GBP.
4. Jordanian dinar
Next on our list is the Jordanian dinar which is the official currency of Jordan since 1950. The currency came after replacing the Palestinian pound.
It might be quite surprising that Jordanian diner stands out to be one of the strongest currencies in the world.
Neither country has any substantial natural resources like oil, coal, and minerals, nor is it economically prosperous; nonetheless, it is one of the most expensive currencies.
So how come it be so strong? The currency has been pegged to the American dollar at a higher rate for the past 20 years.
Besides, the currency is used only in Jordan. The total value of 1 JOD is 1.41 when converted to USD.
3. Omani rial
How high do you think is the purchasing power of Omani rial? The Oman Government has issued banknotes of 1/4 and 1/2 Rial, so guess the monetary value!
Its conversion rate of 2.60 USD to one rial. One of the reasons for such a strong value is that the currency has been pegged to the US Dollar since 1973.
The currency was first introduced in the name Saidi Rial after the sultanate of Oman.
Besides, Oman is rich in oil resources and is one of the leading oil suppliers in the world.
Similarly, it has stable economic development, and the government is involved in diversifying income resources into various other sectors like metallurgy, gas production, and tourism.
All of these have contributed to add value to Omani rial.
2. Bahraini dinar
Bahraini Dinar (BHD) takes the second spot on our list of the strongest currency in the world.
Earlier to 1965, Baharain used the Gulf rupee, and later in 1987, the Bahraini dinar was pegged with the US dollar in 1987.
The biggest source of income for Bahrain is none other than the export of oil and other petroleum products.
Before 1930, Bahrain was also the active exporter of pearl, but later it was stopped after pearl cultivation emerged in Japan.
Similarly, the high value of the currency is because of the high economy of the country from petroleum products and being pegged with USD at a high rate.
Furthermore, one Bahraini dinar buys you 2.65 US dollars s of this writing.
1. Kuwaiti dinar
The world’s strongest currency, the Kuwaiti dinar, is the official currency of Kuwait.
It is the strongest circulating currency and was introduced in 1961. After Kuwait gained independence from Uk, its value has been rising, and at present, 1 Kuwaiti dollar is equivalent to 3.32 US dollars.
Moreover, it was pegged to the US dollar from 2003 to 2007, but later it was pegged to the weighted currency basket.
Kuwait is a leading oil exporter and ranks 6th globally in terms of oil reserves. Also, it is a tax-free country and country with one of the highest GDP per capita.
Since the Kuwaiti dinar is the strongest currency in the world, this makes Kuwait an expensive country to travel to.
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