Strongest Currency in the World: Top 15 Rankings 2025

Did you know that, currently, the Kuwaiti dinar is the strongest currency in the world? Strong sovereign reserves, vast oil wealth and a managed exchange rate from the Central Bank of Kuwait mean that 1 Kuwaiti Dinar will buy 3.27 US Dollars - the highest amount in the world.  

There are 180 global currencies that are recognised as legal tender by the United Nations. We’ve put together a list of the world’s strongest currencies by currency strength against the United States Dollar (USD) below, and explain the economic factors on why they made the list.  

This material is for informational purposes only and not financial advice. Consult a financial advisor before making investment decisions. 

Key Findings 

• There are 180 currencies recognised as legal tender by the United Nations. 
• The exchange rate between two currencies indicates currency strength and weakness, which is influenced by interest rates, inflation and stability. 
• Currencies are either freely floated or pegged to another currency or basket managed by a central bank. 
• The Kuwaiti Dinar is, currently, the strongest currency in the world due to its vast oil wealth, strong sovereign reserves and managed exchange rate from the central bank.  

List of the Strongest Currencies in the World

Below is a list of the strongest currencies in the world against 1 US dollar, as of 10 September 2025. The table highlights the key economic factors of each currency and the type of currency it is.  

Some currencies are official global reserve currencies, which are held in significant quantities by central banks and used widely in international trade and finance.  

Pegged currencies are also considered to be fixed or managed currencies. These currencies are tied to another currency (often the USD or GBP), or to a basket of currencies.  

Free-floating currencies are not fixed to another currency. Their value is set by supply and demand.  

*Please note that all currency exchange rates are accurate at the time of writing but may be subject to fluctuations. Source:  X-Rates, 10 September 2025

1. Kuwaiti Dinar (KWD)

Currently, the Kuwaiti Dinar (KWD) is the world’s strongest currency, with 1 KWD buying 3.27 USD. The currency has held this position since 1961, largely thanks to a fixed exchange rate which is pegged to a basket of currencies but mostly to the US dollar.  

The dinar’s strength comes from Kuwait’s vast oil wealth - it holds around 7% of global proven oil reserves, which generates nearly 90% of the state's revenue. The effect is compounded by the fact that Kuwait has one of the world’s largest sovereign wealth funds - in excess of 800 billion USD - and prudent fiscal management.  

🏛️ Country Spotlight 

• Capital: Kuwait City 
• Population: ~4.5M 
• Reserves: 7% global oil supply 
• Sovereign Fund: Kuwait Investment Authority 

📊 Exchange Rates 

• 1 KWD ≈ 3.27 USD | 2.80 EUR | 2.42 GBP *10 September 2025 

2. Bahraini Dinar (BHD) 

The Bahraini Dinar (BHD) is pegged to the US Dollar, similar to most other Gulf currencies. Since 2001, the Central Bank of Bahrain has managed the exchange rate and pegs its currency to the US dollar at 0.376 BHD to 1 US dollar. While oil remains central to the state's revenue, Bahrain has positioned itself as a regional financial hub, hosting major banks and investment firms to support its ongoing economic diversification into key sectors such as: 

• Finance & banking services 
• Oil refining & petrochemicals 
• Tourism & real estate development 
• Manufacturing & logistics 

📊 Exchange Rates

• 1 BHD ≈ 2.65 USD | 2.27 EUR | 1.96 GBP *10 September 2025 

3. Omani Rial (OMR)

The Omani Rial is pegged to the US Dollar at a rate of ~ 0.384 OMR to 1 USD and was introduced in 1970 when Oman gained its independence from Britain. Oman’s Vision 2040 plan and strict fiscal discipline in its government's budget are central to reducing its oil dependence. Its top priorities for economic diversification include: 

• Tourism – supporting cultural heritage and eco-tourism expansion 
• Manufacturing – adding industrial zones and value-added exports 
• Logistics – leveraging ports and trade corridors 
• Renewables – solar and hydrogen development 

Oman's long track record of managing its exchange rate has helped to secure its currency stability and strength among the Gulf currencies.  

4. British Pound (GBP)

The British Pound Sterling (GBP) is one of the oldest currencies still in use and is also one of the world’s primary reserve currencies. Even after Brexit, London remains a top global financial centre, and is the centre for international banks, global foreign exchange trading and capital markets. Since leaving the gold standard in 1971, the pound has had a free-floating exchange rate. This means its value is based on supply and demand for the currency, unlike Gulf currencies, which are pegged to another one.  

The Bank of England’s independence allows for flexible monetary policy to stabilise the currency, which has seen large price swings in the past from Brexit and the 1992 sterling crisis known as Black Wednesday. 

💡 Did You Know? The British pound is the world’s oldest currency still in circulation, first introduced in the 8th century. 

5. Swiss Franc (CHF)

The Swiss Franc (CHF) is widely regarded as a top safe-haven currency. This is where investors flock to the currency in times of global economic uncertainty and downturns. Several reasons why Switzerland is considered to be a safe haven include:  

• Banking secrecy: Switzerland’s privacy laws have cemented its reputation as a secure place for capital. 
• Political neutrality: Switzerland avoids global conflicts, boosting confidence in its financial system. 
• Strong banking & fiscal discipline: Prudent fiscal policies and a highly developed financial sector sustain its credibility. 

However, this doesn't mean to say that the Swiss Franc has not experienced crises before.  

• In the 2008 global financial crisis, the CHF appreciated sharply as investors exited risk assets and fled to safe havens. 
• During the 2010 to 2012 Eurozone debt crisis, the surge in demand for Swiss Francs drove the currency so high that the Swiss National Bank imposed a temporary peg to the euro. 
• The 2020 COVID-19 pandemic also saw a renewed focus on safe haven flows, causing the CHF to strengthen. 

6. Euro (EUR)

The Euro (EUR) is the world’s second most important reserve currency after the US dollar. Introduced in 1999, the currency helped with Eurozone economic integration, allowing 20 member states to share a single currency that facilitates trade, investment, and price transparency. 

While a free-floating currency, the European Central Bank (ECB) influences the euro by setting unified monetary policies and adjusting interest rates to try and control inflation across member nations, resulting in benefits and challenges.  

Having a single currency benefits the integration of the Eurozone economies as it eliminates exchange rate risks, boosting cross-border business and tourism. However, as some members like Greece and Italy have high sovereign debt, causing ECB intervention, it has strained relations with other countries. 

7. Bruneian Dollar (BND)

The Brunei Dollar (BND) is backed by the nation’s vast gas and oil wealth, which accounts for the majority of export revenues and government income. As the nation only has a small population of fewer than 500,000 people, it results in Brunei having the highest wealth-per-capita ratios globally. 

A unique feature of the BND is its currency interchangeability agreement with the Singapore Dollar (SGD). Since 1967, the two currencies have been pegged and trade at a 1:1 parity, allowing both currencies to be used interchangeably in Brunei and Singapore.  

8. Singapore Dollar (SGD)

The Singapore Dollar (SGD) is often regarded as one of Asia’s most stable currencies and is sustained by the country being one of the world’s top financial centres. Singapore’s economy thrives because of its strategic location at the crossroads of Asia’s main shipping and trade corridors, providing the gateway for global commerce and investment. 

The SGD has a unique currency management system in that it operates under a managed float system. This means that while the currency's value fluctuates based on supply and demand, the Monetary Authority of Singapore (MAS) will sometimes step in to adjust the currency's value to maintain price stability. As such, the Singapore currency ranking in the world is high. What is interesting when reviewing which currency is stronger than SGD, it is mainly those in the Gulf states.

Some of the advantages of Singapore's financial hub status include: 

• Asia-Pacific regional centre for banking, asset management and fintech 
• Location offers advanced port and logistics infrastructure 
• Political and regulatory stability, which attracts foreign investment 

9. Canadian Dollar (CAD) 

The Canadian Dollar (CAD) has been a free-floating currency since 1970. It is an important reserve currency due to Canada’s rich natural resources and strong trade ties with the United States.  

As a leading exporter of crude oil, natural gas, timber, and minerals, Canada’s economy is heavily influenced by commodity prices, which often drive the price action in the Canadian Dollar. Around 75% of Canadian exports go to the US, offering economic integration benefits and cross-border flows.  

CAD's reserve status is also helped by Canada's banking system, which is ranked among the most stable in the world. This provides long-term confidence and stability in its economy and, therefore, currency. 

10. Australian Dollar (AUD)

The Australian Dollar (AUD) is another one of the world's most important reserve currencies, as it is directly connected with Australia being one of the leading commodity export countries. Australia’s enormous mining sector, which is rich in iron ore, coal, natural gas, and gold, forms the basis of the nation’s economic strength and the source of government income.

Due to its location, Australia has significant Asia-Pacific trade links and regional integration. In fact, China is responsible for around one-third of all Australian export volume, with much of it from raw materials. This also means that the AUD is sensitive to the state of the Chinese economy and the demand for raw materials.  

As Australia has one of the world's largest mining sector,s its currency value has a high commodity correlation. When demand for gold or iron ore is high, this can sometimes lead to greater strength in the AUD and vice versa when demand is low.

11. New Zealand Dollar (NZD) 

New Zealand’s economy is much smaller than Australia’s, but the country features a comparable GDP per capita due to its strong agricultural exports. Most notably, dairy, meat and kiwi fruits drive the bulk of the country's trade revenue.  

The country's booming tourism sector also contributes significantly to the country's income. International visitors help boost its services and hospitality sectors, providing around 7.5% of the country's GDP.  

The country's political stability also helps to maintain the price stability of the NZD. 

12. Bulgarian Lev (BGN)

Bulgaria is a country located between Romania and Greece, sharing a border with Turkey. While it has not yet adopted the euro, the country is a member of the European Union. Currently, the Bulgarian Lev (BGN) has a currency board arrangement with the euro and is pegged at 1 EUR = 1.96683 BGN. However, Bulgaria has been approved to adopt the euro from 1 January 2026, making it the 21st member state of the Eurozone. 

Being an EU member state offers several benefits to Bulgaria, such as integration into the European trade system and the European Union's structural funds. While Bulgaria has multiple sectors in the economy, it has a thriving IT outsourcing market, employing over 70,000 specialists, providing over 5% of the country's GDP. 

13. Qatari Riyal (QAR)

Qatar’s economy ranks among the highest in the world based on GDP per capita. The country's currency, the Qatari Riyal (QAR), is supported by the nation’s vast natural gas fortune. It hosts the world’s third-largest natural gas reserves (11% of the world's proven natural gas reserves) which means the government relies heavily on the export of its liquefied natural gas (LNG).  

Historically, Qatar used the Indian rupee as its currency, but after India devalued the currency in 1966, Qatar established their own independent currency. It was initially pegged to the British pound but since 2021, the Qatari Riyal is pegged to the US dollar at a fixed exchange rate of 1 USD = 3.64 QAR. The USD peg and fixed exchange rate help boost its LNG exports as there is no exchange rate fluctuation risk. 

14. Emirati Dirham (AED)

The United Arab Emirates is home to Dubai, an international hub where many expatriates live and work. The Emirati Dirham (AED) is supported by the UAE’s significant oil and gas wealth and, since 2002, has been pegged to the US dollar at an exchange rate of 1 USD = 3.6725 AED. For decades, energy has been the main source of government income. However, recently the country has undertaken the ambitious task of diversifying its economy.  

Dubai and Abu Dhabi are now considered to be major international financial centres. The boost in tourism has also helped the region to diversify its economy. Hosting some of the world's top sports events, providing luxury experiences and lifestyle means that tourism in the UAE is now roughly 12% of the region's GDP. 

15. Saudi Arabian Riyal (SAR) 

The Saudi Arabian Riyal (SAR) is the currency of Saudi Arabia, which boasts the largest economy in the Middle East. It is one of the world's leading oil exporters, which is the principal source of government revenue. Since 1986, the Saudi Riyal has been pegged to the US dollar at an exchange rate of 1 USD = 3.75 SAR.  Its exchange rate’s historic pegging since the year 1986 provides currency stability and investors’ confidence. 

Like many other Gulf states, the country is trying to diversify its economy for other revenue streams. Saudi Arabia’s Vision 2030 is its agenda to diversify into the sectors of tourism, tech, and finance, aiming to de-risk the dependency on hydrocarbons. 

Factors That Determine Currency Strength 

The value of a currency is determined by a combination of economic fundamentals such as supply and demand, as well as fiscal policies from governments and monetary policies from central banks.  

Essentially, strong currencies tend to attract more investment into the economy, while weak currencies can signal potential economic challenges. Some of the main drivers of currency strength include: 

• Interest Rates: Higher interest rates usually increase the demand for a currency since investors can earn more from higher yields. Example: In 2022, the US Federal Reserve increased interest rates, sending the US dollar higher. Past performance is not a reliable indicator of future results. 
• Inflation Rates: Low and stable inflation helps to maintain purchasing power, upholding a currency's value. Example: In 2025, Switzerland’s inflation averaged 0.2%, underpinning demand for the Swiss Franc. 
• Political Stability: Investors tend to prefer currencies from politically stable nations. Example: The political uncertainty after Brexit caused a significant devaluation in the currency, in particular GBP/USD. 
• Economic Performance: Strong GDP growth and stable trade balances help boost investor confidence. Example: A surprise rise in the Australian GDP report on 3 September 2025 sent the AUD higher for several weeks. 
• Trade Balance: A surplus can create natural demand for a currency, while a deficit can have the opposite effect. Example: Historically, Germany exports more goods and services than it imports. This surplus has helped boost the Eurozone economy and the EUR. 
• Foreign Exchange Reserves: High currency reserves assure investors that the country can support its currency through any volatility. Example: China has over $3 trillion of FX reserves, which it uses to support the stability of the CNY (Yuan). 
• Central Bank Policies: A central bank's credibility and independence are top priorities among investors, as they create a transparent environment to deal in. Example: The European Central Bank (ECB) maintains stability in the euro by aligning monetary policy across the member countries. 

💡 Expert Insight: A currency’s strength is never about a single factor; it reflects the interplay of monetary policy, investor confidence, and the underlying economy.  

Economic Indicators 

To gauge currency strength, traders and analysts track a wide range of economic indicators that provide measurable and comparative data. It is important to note that past performance is not a reliable indicator of future results. There are many different major and minor influences on a currency at any one time. A few top-level indicators include: 

• Gross Domestic Product (GDP) – This measures the total value of all the goods and services produced in an economy, which is effectively a country's income. Example: After the better-than-expected September 2025 Australia GDP report, the AUD experienced several weeks of strength. 
• Trade Balance – The is the difference between a country's exports and imports. A surplus can boost demand for a currency, while a deficit can weaken it. Example: Germany has a high trade surplus, which supports the Eurozone economy and the EUR. 
• Debt-to-GDP Ratio – This compares government debt to the size of the economy. Low ratios can indicate strong fiscal health, while high ratios can indicate a default risk. Example: Switzerland’s modest debt levels help the Swiss Franc remain stable. 
• Employment Figures – This tracks the labour strength in an economy. High employment levels can result in strong consumer demand, investor confidence and a growing economy. 
• Foreign Reserves – This measures the amount of foreign currencies held by a central bank. Large reserves provide backup for defending currency stability and volatility. Example: China has over $3 trillion in foreign reserves, which it uses to support the Chinese Yuan. 

Political and Monetary Factors 

Political stability is crucial in upholding investor confidence. Countries that have reliable governance, such as Switzerland, tend to see their currencies act as a safe haven when there is uncertainty in global markets. Conversely, political instability can cause investors to move money out of a country, such as the sharp sell-off in the British Pound after the Brexit vote.   

Another deciding factor on currency strength is monetary policy. A central bank's decision to increase or cut interest rates to control inflation can have a direct impact on the demand for its currency. For example, for the first half of 2025, US President Donald Trump's trade tariffs slowed down the economy and the labour market. This led to rising expectations of an interest rate cut from the Federal Reserve, sending the US dollar lower. As traders exited the US dollar, they moved money into other currencies such as the euro, where the European Central Bank kept rates steady for many months. 

Regional Analysis of Currency Strength 

Currency strength varies among regions, but also highlights some similarities in regions which have similar economic profiles, trade and political stability. Globally, there are some currency strength patterns that stand out, although these could change over time.

Middle East – Home to most of the world’s strongest currencies, like the Kuwaiti Dinar (KWD), Bahraini Dinar (BHD), and Omani Rial (OMR). Their high rankings are a direct result of their vast oil and gas fortunes, small populations, managed exchange rates and USD pegs.  

Europe – Many currencies in Europe reflect the continent’s history of having a stable economy, strong financial centres and regional integration. For example, the Euro (EUR) is the world’s second most powerful reserve currency and benefits from the advantage of integration within the Eurozone.  

Asia-Pacific – Currencies like the Singapore Dollar (SGD) and Australian Dollar (AUD) have strong regional integration thanks to strategic locations driving trade and growth. Singapore is a global financial hub with a managed currency, while Australia has a free-floating currency but exports a large number of raw materials and commodities to China and other nations. 

Americas – The United States Dollar (USD) is the leading global reserve currency and provides the backbone of international trade and finance. The Canadian Dollar (CAD) is another recognised reserve currency, reflecting the country’s rich natural resources and high degree of integration into the United States. 

Regional Comparison 

🌍 Regional Spotlight: Each region’s strongest currencies reflect its core economic advantages - from hydrocarbons in the Gulf to financial hubs in Europe and Asia-Pacific, and currency reserve status in the Americas. 

What is the Exchange Rate? Understanding Currency Pairs 

The exchange rate is the value of one currency against another. They are always quoted in pairs - the first in the pair is the base currency and the second is the quote currency. For example, if the exchange rate of EUR/USD is 1.1500, it means that 1 euro buys 1.15 US dollars.   

Exchange rates are determined in real-time, with rates constantly changing based on supply and demand and news around interest rates, geopolitical events, and economic data releases. 

There are usually two prices for an exchange rate. The difference between them is known as the bid-ask spread.  

• Bid = the price a buyer is willing to pay 
• Ask = the price a seller will accept 

The difference between the bid and ask price is the spread. For example: EUR/USD 1.1510 (bid) / 1.1512 (ask) → The spread is 0.0002 (2 pips). 

One of the biggest factors governing the demand for a currency - and there are many - is the interest rate set by the central bank. If the Federal Reserve pays out much higher interest rates on dollars than the European Central Bank pays on euros, traders may consider exchanging their euros for dollars to earn more interest on their capital, leading the dollar to appreciate against the euro. Some traders will use the carry trade to participate in such scenarios. 

Sometimes a country might deliberately choose to devalue its currency by lowering the central bank’s interest rate. This makes exporting goods cheaper and can make a country’s goods more competitive on the international market. Identifying the global macro theme of two countries can also help to determine the trend of currency pairs. 

Market makers from major banks and financial institutions provide constant buy and sell prices of currency pairs, ensuring strong liquidity so traders can transact instantly. A broker provides these prices from interbank market liquidity providers, which allow retail traders to use forex trading to speculate on the exchange rate.  

How to Trade Forex Pairs

Trading forex pairs involves speculating on the future price direction of a currency pair. It is difficult to succeed with many more traders failing to achieve long-term success.  

Trading forex involves significant risk of loss and is not suitable for all investors.  Before considering forex trading, you should carefully assess your financial situation, risk tolerance, and seek advice from an independent financial advisor. Past performance is not indicative of future results. Only trade with money you can afford to lose. 

However, there are some steps that can help to learn and improve forex trading skills. These include:  

Steps to Trade Forex Pairs: 

1. Choose the Right Broker - Always trade with a regulated broker from an established financial jurisdiction. 
2. Open a Live or Demo Account - A demo account is a useful way to practice forex trading in a virtual environment before using live money. 
3. Select a Few Currency Pairs – Select a few major currency pairs to begin with to learn how they move. 
4. Apply Fundamental Analysis – Analyse economic indicators and news events to identify drivers of currency strength or weakness. 
5. Apply Technical Analysis – Study price charts, trends, patterns and technical indicators to time entries and exits. 
6. Determine Position Sizing – Some traders use position sizing calculators to manage risk. Risk practices vary and losses can exceed deposits. 
7. Exercise Proper Risk Management – Always place a stop-loss and take-profit order to manage trades effectively. 
8. Journal and Review – Keep a trading journal and review the performance regularly to identify patterns of strength and weakness in trading decisions.

Economic Impact of Strong Currencies 

Having a strong currency has a significant impact on shaping a country's domestic economy, as it influences trade, tourism and investment. While it can signal investor confidence and stability, overall, the impact can be both positive and negative.  

Key Effects: 

• Export Competitiveness – A strong currency can make a country's goods and services more expensive abroad, which can hurt the domestic export sector. Example: A strong euro makes it more expensive for other countries to purchase German goods.  
• Imports – A strong currency makes imports cheaper, which can help to lower costs for businesses and increase consumer demand for foreign goods.  
• Tourism Impact – International travellers may find it more expensive in countries with a strong currency. Example: The high value of the Kuwaiti Dinar makes it more expensive for visitors, unlike countries in Asia, which have a weaker currency.  
• Foreign Investment – Historically, strong and stable currencies have often attracted capital inflows, although this is not guaranteed. Example: During times of economic uncertainty, investors tend to flock to Switzerland's safe-haven Swiss Franc. 

Pros and Cons of Strong Currencies 

FAQs on the Strongest Currency in the World 

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