Almost every economy around the globe has had to adjust and adapt to the changes brought on by the COVID-19 worldwide pandemic from the beginning of 2020. Surprisingly, despite all of the difficulties nations encounter throughout the globe, nothing has changed in terms of the location of the world's most valuable currencies.
I am sure you have thought long and hard about which currency is the most powerful. The first thought is that it may be in the shape of the British Pound, US Dollar, or Euro.
According to the United Nations, 180 currencies are accepted as legal cash globally, but do you know which one has the highest value?
Compared to the global reserve currency, the US dollar, the most costly currency, is a strong currency. In other words, you will get the minor currency back for 1 US dollar when you trade.
Find out which currencies are the world's 20 most robust in 2022, why they are strong, and why they are so highly valued in this post.
The world is not the same as before the global breakout of the Coronavirus pandemic, which rattled significant economies worldwide, sending equities, bonds, commodities, and other assets to new lows in 2020. The top 20 strongest currencies in 2022 were expected, despite a minor reduction in the value of money.
As of March 2022, the following is a list of the world's 20 strongest currencies in terms of the US Dollar.
KWD (Kuwaiti Dinar)
The Kuwaiti Dinar is the world's most powerful currency, ranking first globally. The Kuwaiti Dinar was initially issued in 1960 when Kuwait won independence from the British Empire, and it was worth one pound at the time.
Kuwait is a tiny nation sandwiched between Iraq and Saudi Arabia in terms of geography. The current KWD exchange rate is $3.286, which means that if you trade one USD for 0.30 Kuwaiti Dinar, you will get 0.30 Kuwaiti Dinar.
According to the wiki, Kuwait's currency has the most outstanding value due to the nation's stable economy and the fact that it is an oil-rich country with 9% of the world's oil reserves on its borders.
Kuwait is significantly reliant on oil exports, which account for almost all of the country's income.
Production of petroleum products is simple in Kuwait, and the cost of production is the lowest compared to other nations. Kuwait is a tax-free nation with a relatively low unemployment rate, an intriguing statistic about the country. Kuwait is ranked eighth on the list of nations with the most significant GDP per capita.
BHD (Bahraini Dinar)
The Bahraini Dinar (BHD) comes in second on the world's most valued currencies list. The BHD conversion rate is $2.659 to one Dinar, which means that if you trade one Dollar, you will get 0.37 BHD.
In 1965, BHD discontinued utilizing the Gulf rupee as legal money and replaced it with the Bahraini Dinar. The BHD is tied to the US Dollar, and the exchange rate has been relatively steady with slight fluctuation since 1987.
Bahrain has a population of around 1 million people. The export of gas and petroleum products is the most important source of income for this Persian Gulf island state, much as Kuwait.
Bahrain is one of the world's top oil producers, and pearl digging was the country's most profitable sector. However, owing to pearl farming in Japan, manufacturing was halted in the 1930s.
One curious fact is that the Riyal, the Saudi Arabian currency, is legally recognized as legal cash in Bahrain. The exchange rate remains steady at 1 Dinar = 10 Riyals.
OMR stands for Omani Rial.
The Omani Rial is the world's third most costly currency. For one Rial, the OMR exchange rate is 2.60 USD.
After Oman's sultanate, the Omani Rial was first established in 1970 as the Saidi Rial, the House of Al Said. The OMR has been tied to the US Dollar since 1973.
Due to the tremendous buying power of the Omani Rial, the government of Oman has printed 1/4 and 1/2 Rial banknotes. Like the other Gulf nations in the Middle East, Oman is an oil-rich country that has grown into a sophisticated economy with a high level of life.
Because oil supplies are rapidly dwindling, the government of Oman has chosen to diversify its revenue from crude oil production to other industries such as metallurgy, gas development, and tourism.
Jordanian Dinar (JOD)
With JOD = 1.41 USD conversion rate, the Jordanian Dinar, the country's currency since 1950, is placed fourth on our list of the strongest currencies.
It was initially tied to the US Dollar at a greater rate, but the government has successfully maintained this peg for the last two decades.
Jordan is a developing market with little economic development. Thus there is no fundamental argument to explain its high value. Jordan lacks natural resources such as oil and coal, among others, and has a large external debt.
Jordan's economic development has been slowing since 2011, owing to a significant increase in population, foreign debt, and unemployment.
The British Pound Sterling is the world's fifth most powerful currency, with a conversion rate of 1 GBP = 1.322 USD. Many people believe that the British Pound has the most significant monetary worth. However, this is not the case.
The British Empire had expanded over the globe before World War I; hence the GBP is the oldest currency in use.
One of the world's most popular currencies is the pound sterling. The GBP/USD pair is the world's third most traded pair after EUR and JPY, and traders refer to it as "the cable" in the forex market.
England, Scotland, Wales, and Northern Ireland share the pound sterling as their official currency.
Three British Crown Dependencies, Guernsey, Jersey, and the Isle of Man, use GBP as a parallel currency.
Few British colonies, such as the Falkland Islands, Gibraltar, and Saint Helena, have currencies that are valued one to one. However, the authentic look of these paper currencies varies from that of the Bank of England.
KYD is the currency of the Cayman Islands
The Cayman Islands Dollar is the sole Caribbean currency in our list of stable currencies, coming in sixth place. The main reason for this is that it is a self-governing British territory regarded as one of the most significant tax havens globally for corporations and individuals.
The Cayman Islands has a conversion rate of 1 KYD = 1.22 USD and is one of the top five offshore financial hubs in the world.
Many banks, hedge funds, and insurance organizations are granted licenses to establish their businesses in the nation.
EUR is the currency of Europe.
With a conversion rate of 1.093 versus the Dollar, the Euro is ranked seventh on our list of the strongest currencies, and 19 European nations use the Euro as their official currency.
After the US dollar, the Euro is the second most crucial reserve currency, accounting for 25% of all global deposits. Around 25 nations have set a fixed rate for their currencies tied to the Euro.
The EUR/USD pair, commonly known as "Fiber," is the most traded currency pair, accounting for over 25% of daily activity. In addition, behind the US Dollar, the Euro is the second most traded currency.
CHF (Swiss Franc)
With a conversion rate of 1.091 versus the Dollar, the Swiss Franc is ranked eighth on our top currencies list. The Swiss franc is one of the most stable currencies in the world, with no inflationary influence.
Switzerland is one of the world's wealthiest nations, with a strict monetary policy and low debt levels. One of the main reasons it is a secure pick for investors when trading or saving cash is this.
The United States Dollar
Since the Breton Woods agreement in 1944, the US Dollar has been the "World Reserve Currency." The US dollar is the most extensively traded currency in the forex market.
Because it is acknowledged throughout the globe, the US dollar is constantly in great demand. More than 85% of daily forex deals include the US dollar. The United States, with a GDP of more than $22 trillion, is the world's economic engine.
As of September 2018, the US dollar value in circulation was 1.69 trillion dollars. Within the United States, just 30% of the money is in circulation.
There was a period when $1,000, $5,000, $10,000, and $100,000 bills were issued in the United States.
10. BSD (Bahamian Dollar) is the currency in the Bahamas
Since 1966, the BSD has been the official currency of the Bahamas. The BSD is at par with the USD.
For the convenience of American travelers, many firms that cater to the tourism sector keep some additional US dollars on hand.
The Bermudian Dollar (BMD)
Bermuda's official currency is the British Overseas Territories Dollar (BMD). BMD is tied to USD at a one-to-one ratio. The most considerable denomination note in use is the 100 BMD.
The Bermudian Dollar cannot be traded outside of Bermuda, and Bermuda accepts both USD and BMD currency.
PAB (Panamanian Balboa)
Panama's official currencies are the Panamanian Balboa and the United States Dollar, and PAB is likewise at par with the US dollar. Balboa was named after the Spanish adventurer Vasco Nez de Balboa.
The Balboa replaced the Colombian Peso when Panama attained independence in 1906. Panama has never had an official central bank, which is unusual.
CAD (Canadian Dollar)
With a conversion rate of 0.785 versus the US dollar, the Canadian Dollar is the country's official reserve currency. The Canadian Dollar is the world's fifth-largest reserve currency.
Canada possesses the world's second-largest crude oil reserves, after only Saudi Arabia and Venezuela, and the world's second-largest uranium supply.
Australian Dollar: AUD
In Australia and certain Pacific island countries, the Australian Dollar is the official legal cash. It is regarded as one of the stable currencies, with a conversion rate of 0.736 versus the US dollar.
With 6.8% of daily traded volume, the Australian Dollar is the fifth most traded currency in the forex market.
SGD (Singapore Dollar)
With a conversion rate of 0.735 versus the US dollar, the Singapore Dollar is one of the strongest currencies in the APAC area.
Singapore's government has created a S$10,000 banknote, which was the world's most valued currency in circulation. However, they chose to halt printing in 2014 and began the withdrawal procedure.
BND (Brunei Dollar)
Due to a currency agreement between Singapore and Brunei, the Brunei Dollar exchange rate is the same as the Singapore Dollar. SGD and BND are two currencies that are convertible at par and may be used in Singapore and Brunei.
The Sultan of Brunei is the world's wealthiest monarch, with an estimated net worth of 28 billion dollars.
NZD stands for New Zealand Dollar.
The Cook Islands, Niue, Tokelau, and the Pitcairn Islands use the New Zealand Dollar as their official currency.
It is known colloquially as the "Kiwi" or "Kiwi dollar" in the currency market. The New Zealand dollar exchange rate is 0.686 to the US dollar.
The New Zealand Dollar (NZD) was first issued in 1967. The New Zealand dollar is the world's tenth most traded currency, and it accounts for 2.1 percent of the daily amount of foreign exchange.
BGN (Bulgarian Lev)
Bulgaria's national currency is the Bulgarian Lev, which has a USD translation rate of 0.559. Initially, in 1997, BGN engaged in a fixed-rate currency board agreement with Deutsche Mark.
It was tied to the Euro at a fixed rate of BGN 1.95583: EUR 1 once the Euro was introduced.
Fijian Dollar (FJD)
Fiji's currency is the Fijian Dollar, which has a conversion rate of 0.474 versus the US dollar. In 1969, it was adopted to replace the Fijian pound at a rate of 1 pound = 2 dollars.
Despite winning independence from the British in 1970, Queen Elizabeth II was featured on coins and banknotes until 2013, and it was eventually replaced with plant and animal images.
Brazil Real (BRL)
The Brazilian Real is the country's official currency, with a conversion rate of 0.197 to the US dollar. BRL was first launched in 1994.
In our ranking of the world's strongest currencies, the BRL is ranked 20th. Brazil is one of the world's top suppliers of raw commodities.
The Top 10 List of Highest Currencies and Its Values:
#1: Kuwaiti Dinar (KWD): [1 KWD = $3.30 USD]
Despite its small size, Kuwait's contribution to the global oil business has made it one of the world's wealthiest nations, with $71.58 billion. As a result, the Kuwaiti Dinar remains the world's most powerful currency.
#2: Bahraini Dinar (BHD): [1 BHD = $2.65 USD]
Bahrain, a nation recognized for its exports rather than its size, has amassed a fortune by selling petroleum products, which has totaled over $69 billion so far. This has contributed significantly to the Bahraini Dinar's continuing strength since it remains the world's second most costly currency.
#3: Omani Rial (OMR): [1 OMR = $2.60 USD]
Oman is another robust economy that derives its income from oil exports. It is worth noting that, although having minor oil reserves in this area, Oman's position in the Persian Gulf allows it to manage a more significant amount of oil due to the size of its deposits. This has undoubtedly contributed to the country's currency staying one of the most powerful in the world.
Jordanian Dinar (JOD) (#4): [$1.41 USD = 1 JOD]
Unlike the top three nations, Jordan's economy is tiny and well-diversified and relies heavily on petroleum exports. There are several reasons why the Jordanian Dinar is one of the world's strongest currencies, ranging from commerce and banking to manufacturing and mining.
#5: Pound Sterling (GBP): [1 GBP = $1.34 USD]
Pound Sterling is the official currency of the United Kingdom and a few of its overseas territories and royal dependencies. Even though certain territories issue their versions of the Pound Sterling, such as the well-known British Pound Sterling or the Gibraltar Pound, all other forms of the currency are regarded equally.
#6: The Cayman Islands Dollar (KYD): [1 KYD = $1.20 USD]
The Cayman Islands Dollar is one of the world's strongest currencies, which comes as no surprise given the region's status as a preferred tax haven. In truth, the Cayman Islands provide offshore banking services to tens of thousands of hedge funds, insurance firms, and financial organizations rather than relying on natural resource exports like some other popular currencies do.
#7: Euro (EUR): [1 EUR = $1.12 USD]
The Euro is the official currency of the Euro Area (or Eurozone), which comprises 19 of the 27 European nations that make up the European Union. The Euro remains strong year after year because it comprises some of the world's wealthiest nations.
#8: Swiss Franc (CHF): [1 CHF = $1.08 USD]
Because Switzerland has such a prosperous and stable economy, the Swiss franc is regarded as a "safe-haven" currency. Who would not want to trade in a currency that is so constant in its reliability?
#9: United States Dollar (USD)
What can we say about the USD that you do not already know? It is the official national currency of the United States of America and the world's most commonly traded currency, which is why we use it as the benchmark against which other currencies are measured. We predict the USD will stay on the list of the world's most valuable currencies for years to come as long as it is such a widely utilized currency.
#10: Canadian Dollar (CAD): [1 CAD = $0.79 USD]
Most people do not think of uranium when they think of Canada, but the country has the world's second-largest uranium supply and vast crude oil deposits. The Canadian dollar swings are significantly dependent on the continuous value of the USD, unlike many other nations, due to its close commercial relationship with the United States.
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