How do you think what is the highest currency in the world today?
Most people believe that the British Pound is the most expensive currency. But actually, it is not. There are at least a few currencies that are more valuable.
To help you get a better understanding of the situation, we compiled a list of the strongest world currencies as of May 19, 2020.
Compare this list with the TOP 10 of the weakest world currencies to see the significant differences.
#1 – Kuwaiti Dinar ($3.24)
Currency code – KWD.
Kuwaiti Dinar rates:
1 KWD = 3.24 USD (Kuwaiti dinar to US dollar).
1 KWD = 2.96 EUR (Kuwaiti dinar to euro).
The highest currency in the world is Kuwaiti Dinar (against the US Dollar).
Kuwait is a small country with enormous wealth. The high value (rate) of its currency is explained by significant oil exports into the global market.
Due to the stable petroleum-based economy, highly developed oil production and export, Kuwait is considered to be one of the richest countries in the world.
More than 80% of the country's revenue comes from the oil industry, as petroleum production here is the easiest and, therefore, the cheapest among other countries.
Since 2003 the currency was pegged to the US Dollar, but in 2007 the government decided to peg the Kuwaiti Dinar to the weighted currency basket.
Besides the very stable economy, Kuwait is a tax-free country with a very low unemployment rate.
#2 – Bahrain Dinar ($2.66)
Currency code – BHD.
Bahrain Dinar rates:
1 BHD = 2.66 USD (Bahrain Dinar to US Dollar).
1 BHD = 2.43 EUR (Bahrain Dinar to Euro).
The Bahrain Dinar is the second most valuable currency.
Bahrain is a Persian Gulf island state with a population of just over 1 million people. As in the first case, this country’s largest source of income is the "black gold" exports.
Interestingly, the Bahrain Dinar is pegged to the US Dollar exchange rate, and its rate against the US Dollar has remained stable since 2005.
#3 – Oman Rial ($2.60)
Currency code – OMR.
Oman Rial rates:
1 OMR = 2.60 USD (Oman Rial to US Dollar).
1 OMR = 2.37 EUR (Oman Rial to Euro).
Oman is a country on the Arabian Peninsula. Thanks to its strategic location, it possesses a developed economy and a high quality of life.
The Oman Rial is also pegged to US Dollar as Bahrain Dinar.
Remarkably, the purchasing power of this currency is so high that the government had to issue 1/4 and 1/2 Rial banknotes. On the picture above, you can see 1/2 Rial (Half Rial).
#4 – Jordan Dinar ($1.41)
Currency code – JOD.
Jordan Dinar rates:
1 JOD = 1.41 USD (Jordan Dinar to US Dollar).
1 JOD = 1.29 EUR (Jordan Dinar to Euro).
It is hard to explain the high value of Jordan Dinar. This country is not economically developed, and it lacks essential resources, such as oil.
Nevertheless, one Jordan Dinar costs 1.41 US Dollars, which makes it one of 10 the strongest world currencies.
#5 – British Pound Sterling ($1.23)
Currency code – GBP.
British Pound Sterling rates:
1 GBP = 1.23 USD (British Pound Sterling to US Dollar).
1 GBP = 1.12 EUR (British Pound Sterling to Euro).
Most people consider that British Pound is the strongest world currency, but it only closes the top five of this list.
British Colonies issue their own banknotes, which visually differ from banknotes issued by the Bank of England, but they are valued as 1 per 1.
Therefore, there are several of them: Scottish, North Ireland, Manx, Jersey, Guernsey, Gibraltar Pounds, as well as St. Elena Island Pound and Falkland Islands Pound.
Amusingly, native Britons do not always want to accept "other" Pounds as a means of payment.
#6 – Cayman Islands Dollar ($1.22)
Currency code – KYD.
Cayman Islands Dollar rates:
1 KYD = 1.22 USD (Cayman Islands Dollar to US Dollar).
1 KYD = 1.11 EUR (Cayman Islands Dollar to Euro).
The Cayman Islands are one of the world’s best tax haven. These islands provided licenses for hundreds of banks, hedge funds, and insurance companies.
Thanks to its leadership among tax haven Cayman Islands Dollar costs approximately 1.22 US Dollars.
#7 – European Euro ($1.10)
Currency Code – EUR.
European Euro rate:
1 EUR = 1.10 USD (European Euro to US Dollar).
The Euro currency has strengthened over the past few years. This allowed it to rise in the list of the most powerful currencies. Partially, its strength is explained by the fact that it is the official world currency in European countries, among which you will find several economically developed ones.
Besides, Euro is the second reserve world currency enveloping 22.2% of all world savings (US Dollar has 62.3%).
#8 – Swiss Franc ($1.03)
Currency code – CHF.
Swiss Franc rates:
1 CHF = 1.03 USD (Swiss Franc to US Dollar).
1 CHF = 0.94 EUR (Swiss Franc to Euro).
Switzerland is not only one of the richest countries in the world, but it also belongs to the most stable ones. Its banking system had long been known for its formerly resolute "Bank Secrecy".
Besides, its high-tech goods are very well known all around the globe.
Pay attention to how extraordinary this banknote looks. This is the only banknote I saw which has a vertical view.
#9 – US Dollar
Currency code – USD.
US Dollar rate:
1 USD = 0.91 EUR (US Dollar to Euro).
Owing to the USA's world economic leadership, its currency achieved the title "World Reserve Currency". In other words, you can make dollar payments everywhere (in any country).
#10 – Canadian dollar ($0.72)
Currency code – CAD.
Canadian dollar rates:
1 CAD = 0.72 USD (Canadian dollar to US Dollar).
1 CAD = 0.66 EUR (Canadian dollar to Euro).
The Canadian dollar is the fifth largest reserve world currency. It is often called the "loonie" in honor of the bird depicted on the one-dollar coin.
Out of TEN
Due to the dynamically changing economic and political situation in the world, it is hard for some currencies to remain in this ranking, so here is the list of currencies that left the top ten of previous periods.
Australian dollar ($0.65)
Currency code – AUD.
Australian dollar rates:
1 AUD = 0.65 USD (Australian dollar to US Dollar).
1 AUD = 0.60 EUR (Australian dollar to Euro).
An interesting fact is that the new series of Australia banknotes pictured above will have a tactile feature (Braille) to help the visually impaired community to tell the value of the banknote.
Also, Australia conducts the fight against cash by reducing the share of cash payments while making small retail purchases.
Libyan Dinar ($0.70)
Currency code – LYD.
Libyan Dinar rates:
1 LYD = 0.70 USD (Libyan Dinar to US Dollar).
1 LYD = 0.64 EUR (Libyan Dinar to Euro).
The Libyan Dinar has token money called Dirham. Interestingly, one Dinar is equal to 1,000 Dirham, and not 100, as we all used to think.
Azerbaijani manat ($0.59)
Currency code – AZN.
Azerbaijani manat rates:
1 AZN = 0.59 USD (Azerbaijani manat to US Dollar).
1 AZN = 0.54 EUR (Azerbaijani manat to Euro).
It was a surprise to see Azerbaijani manat on this list. However, the currency of this Central Asian country is a little bit weaker than the US Dollar.
The economy of Azerbaijan is surprisingly strong, and its unemployment rate is low.
Have you ever heard about the currency called Seborgan Luigino?
It belongs to the micronation Principality of Seborga on the border of Italy and France. The Seborgan Luigino circulates mostly locally and is not considered a valid currency in any other country.
But interestingly, the local rate claims to be 1 SPL = 6 USD, which could make it the highest-valued currency in the world if it was officially recognized outside Seborga.
So, despite such a huge value of SPL, it cannot top our list of the highest currencies in the world so far.
Is the high value of the currency a sign of a strong economy?
It is known that the currencies of not very successful countries tend to decrease in value. However, when everything is fine with the economy, we can hardly see the opposite effect.
Indeed, there were almost no cases when the value of a currency was constantly increasing. The reasons may be different. But for a country, the constant strengthening of the currency is not profitable, as the population begins to save funds actively instead of spending them.
Thus, the high value of the currency only says that inflation processes in the country are under control.
In the context of this article, we should also mention Japan being one of the strongest economies in the world. But at the same time, the value of the Japanese yen is very small, $1 = ¥ 107.74.
Information about the highest value of currencies can hardly be used by investors to make any investment decisions. In this case, it is better to consider the most stable currencies.
In addition, we learned that it is not allowed to use banknote images without the “SPECIMEN” title. So follow the law, friends!