10 World’s Strongest Currencies In 2023

While the US dollar is the world’s reserve currency, it is far from the world’s highest or most valuable currency. This article presents an up-to-date ranking of the world’s strongest currencies based on an examination of the 180 recognized international monetary exchanges, including African currencies.

The value of currencies is determined by a multitude of factors. Nonetheless, it normally rises as a result of government economic stimulus, low inflation (about 2% per year), and an improved trade balance. So, these are ten of the world’s most valuable and strongest currencies when measured against the US dollar, the world’s main reserve currency:

1. Kuwaiti Dinar (KWD)

The Kuwaiti dinar is the world’s strongest currency, with one dinar worth 3.26 US dollars (or, in other words, one US dollar equals 0.31 Kuwaiti dinars). Kuwait is positioned between Saudi Arabia and Iraq and derives much of its riches from being a major worldwide oil exporter. The Kuwaiti dinar was first launched in the 1960s and was first tied to the British pound before being re-pegged to an unspecified basket of currencies.

2. Bahraini Dinar (BHD)

The Bahraini dinar is the world’s second most valuable currency, with 1 Bahraini dinar equaling 2.65 US dollars (or US$1 equaling 0.38 Bahraini dinars). Bahrain is a Persian Gulf island nation off the coast of Saudi Arabia. The country, like Kuwait, derives a large portion of its wealth from oil and gas exports. The Bahraini dinar was introduced in 1965 and is tied to the US dollar.

3. Omani Rial (OMR)

The Omani rial is the world’s third most valuable currency, with 1 Omani rial equaling 2.60 US dollars (or US$1 equals 0.38 Omani rial). Oman is located near the tip of the Arabian Peninsula, between the United Arab Emirates and Yemen. Oman, like its other rich neighbors, is a significant oil and gas exporter. The Omani rial, which was adopted in the 1970s, is linked to the US dollar.

4. Jordanian Dinar (JOD)

The Jordanian dinar is the world’s fourth most valuable currency, with 1 Jordanian dinar equaling 1.41 US dollars (or US$1 equals 0.71 Jordanian dinar). Jordan is mostly landlocked, sharing borders with Egypt, Syria, Iraq, and Saudi Arabia. Jordan is less reliant on oil and gas exports than its neighbors, and it has faced slow economic development and mounting debt. Jordanian dinars have been in circulation since 1950 and are tied to the US dollar.

5. British Pound (GBP)

The British pound is the world’s fifth most valuable currency, with 1 British pound equaling 1.20 US dollars (or US$1 equals 0.83 British pounds). According to the World Bank, the United Kingdom is the sixth largest country in terms of GDP. The pound was first introduced in the 1400s and was decimalized in 1971. It is not tied to other currencies because it is free-floating.

Being the official currency of the United Kingdom’s overseas territories, such as Northern Ireland, Gibraltar, and Maine, has contributed to the British pound remaining one of the world’s most valuable currencies.

6. Cayman Islands Dollar (KYD)

One Cayman Islands dollar can buy 1.20 U.S. dollars, making it the sixth-strongest currency in the world (or 0.83 U.S. dollars for every 1 Cayman Islands dollar). A center for offshore finance is located on the British colony of the Cayman Islands in the Caribbean. The Cayman Islands dollar, which pegs to the American currency, was first adopted in the 1970s.

7. Gibraltar Pound (GIP)

With 1 Gibraltar pound equaling 1.20 US dollars (or 0.83 Gibraltar pounds for every $1), the Gibraltar pound is tied for sixth place among all currencies in the world. At the southernmost point of Spain, Gibraltar is formally a British territory. The British pound and the Gibraltar pound are pegged at par, which means that one GIP is equivalent to one GBP, since the introduction of both currencies in the 1920s.

8. Swiss Franc (CHF)

With 1 Swiss franc equaling 1.07 U.S. dollars (or 0.93 U.S. dollars for 1 Swiss franc), the Swiss franc ranks as the eighth-strongest currency in the world. Because of Switzerland’s political stability, the Swiss franc is the country’s and Liechtenstein’s official legal money and is regarded as a safe haven.

The Swiss franc was first issued in 1850, and it later underwent a brief period of peg to the euro before becoming free-floating. Due to its rigorous monetary policy, low debt levels, and status as one of the richest countries, the Swiss franc is a safe bet for investors.

9. Euro (EUR)

With 1 euro costing 1.07 U.S. dollars (or US$1 equals 0.94 euros), the euro is tied for eighth place among all currencies in the world.  The official currency of the Eurozone, which comprises 19 of the 27 nations that make up the European Union, is the euro. The actual money went into use in 2002 and is currently floating.

10. US dollar (USD)

The value of the dollar against itself is exactly one, making it the tenth-strongest currency in the world. The value of every other currency in the world is inferior than that of the US dollar. The United States of America, other U.S. territories, and independent countries including Puerto Rico, Ecuador, and Zimbabwe all recognize the U.S. dollar as legal money.

By GDP, the United States has the largest economy in the world, and the dollar is by far the most widely traded currency worldwide. The U.S. dollar is used to price a variety of commodities, including oil, gold, and copper. It is also the largest reserve currency in the world and the currency that central banks hold the most of.