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Strongest Currencies in the World

Vincent Nyoike
Vincent Nyoike Finance

People seeking to store wealth tend to use the strongest currencies in the world. Therefore, if you are looking to store wealth, you need to know these currencies. The U.S Dollar and the Euro are the most traded currencies in the forex market, but they are not the strongest. Countries that export oil tends to have the strongest currencies. Below is a list of the highest valued currencies in the world.

#1 Kuwait Dinar

  • 1 KWD = 3.31 USD
  • 1 KWD = 2.77 EUR

The Kuwait Dinar is the world’s strongest currency. The strength of the Kuwait Dinar is due to the country’s strong economy. Kuwait is a country on the Asian Continent. It is a small but wealthy country that produces petroleum products. Petroleum products contribute about 95% of the its revenue. It is a tax-free country with minimal unemployment rates. The Kuwait Dinar was introduced in 1961 after the country gained independence from the United Kingdom.

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#2 Bahraini Dinar

  • 1 BHD = 2.66 USD
  • 1 BHD = 2.23 EUR

The Bahraini Dinar is the second strongest currency in the world. The currency has remained stable over the years since 1987. Bahrain is an oil-producing company and that’s what has made its currency remain stable.   

#3 Oman Rial

  • 1 OMR = 2.60 USD
  • 1 OMR = 2.34 EUR

The Oman Rial was introduced in Arabia in 1973. The stability of the currency is due to gas production and oil exports. The Oman Rial is pegged to the US Dollar. The value of the Oman Rial is so high that the government has to issue ½ and ¼ banknotes. The country is developed and people lead a quality life.

#4 Jordanian Dinar

  • 1 JOD = 1.41 USD
  • 1 JOD = 1.27 EUR

The Jordan Dinar has been pegged to the US Dollar for the last 20 years. Jordan is a developed country that has no mineral resources like oil.  It mainly depends on external debt like the IMF. However, the country has managed to maintain a stable currency over the years.

#5 British Pound Sterling

  • 1 GBP = 1.38 USD
  • 1 GBP = 1.16 EUR

The British Sterling Pound is considered the strongest currency worldwide. However, it is fifth in the rank when compared with the US Dollar. It is among the oldest currencies that have been in circulation for years. The GBP is the third most traded currency in the forex market worldwide. GBP is used in England, Scotland, Wales and Northern Ireland.

#6 Cayman Islands Dollar

  • 1 KYD = 1.22 USD
  • 1 KYD = 1.02 EUR

Cayman Island is among the countries with the best tax policies. It is a British territory and has among the wealthiest individuals and corporations. The Cayman Island Dollar is the only strongest currency in the Caribbean. 

#7 European Euro

  • 1 EUR = 1.19 USD

The European Euro is an official currency for 19 countries in Europe. There are about 25 countries that peg their currency to Euro. It is among the widely used currencies and the second most traded currency in the forex market after the U.S Dollar.

#8 Swiss Frank

  • 1 CHF = 1.08 USD
  • 1 CHF = 0.91 EUR

The Swiss Franc is the 6th most traded currency in the world. Interestingly, it is the only currency that is not affected by inflation. Switzerland is among the richest countries in the world allowing the Swiss Franc to perform well. Switzerland has the lowest debt levels and strictest monetary policies in the world.

#9 US Dollar

  • 1 USD = 0.84 EUR

The US Dollar is the commonly used and the most traded currency in the forex market. You can use it to make payments across the world. It is held by both central and commercial banks across the globe. It has gained the title “World Reserve Currency” because of the U.S’s economic stability. 

#10 Canadian Dollar

  • 1 CAD = 0.75 USD
  • 1 CAD = 0.68 EUR

The Canadian Dollar is the 10th strongest currency in the world. It is the 7th most traded currency in the forex market. Its stability is due to Uranium exports by Canada. Canada also holds the second-largest oil reserves in the world after Arabia.The value of CAD depends on global oil prices. There is a correlation between the CAD and the USD. When the value of USD increases, that of CAD also increases.

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Final Word

The strongest currencies in the world are pegged to the US Dollar. Nevertheless, the USD is not the strongest currency. Countries that export oil have the strongest countries worldwide. Other factors that affect the value of currencies include a country’s stability.