Top 15 Strongest Currencies in the World
Have you ever wondered what the strongest currency in the world is? We’ve put together a list of the world’s strongest currencies based on the number of units of foreign currency received in exchange for 1 US Dollar.
Table of Contents
List of the Strongest Currencies in the World
* Please note that all currency exchange rates are accurate at the time of writing but may be subject to fluctuations. Source: X-Rates, 1 Sept 2023
1. Kuwaiti Dinar (KWD)
At the time of writing, the Kuwaiti Dinar is the strongest currency in the world. 1 US Dollar is equivalent in value to 0.308 Kuwaiti Dinar. Put another way it takes 3.08 Kuwaiti Dinars to buy 1 US Dollar.
The Kuwaiti Dinar frequently finds itself at the top of the list of the strongest currencies in the world. The currency is unique as it is pegged to several other currencies, including the US Dollar, but with the basket of currencies unknown.
Some investors keep a portion of their capital in the Kuwaiti Dinar because of its historical stability and high relative value. Note that investing in foreign currencies is speculative and associated with risk.
2. Bahraini Dinar (BHD)
1 US Dollar is equivalent to 0.376 Bahraini Dinar.
The Bahraini Dinar is quite similar to the Kuwaiti Dinar, as both currencies are (partly) pegged to the US Dollar and both respective countries’ economies are chiefly reliant on oil exports.
The economic landscape in Bahrain is also considered to be stable, which is an important factor in a currency’s strength.
3. Omani Rial (OMR)
1 US Dollar is equivalent to 0.385 Omani Rials.
The Omani Rial is pegged to the US Dollar and was introduced in 1970 when Oman gained its independence from Britain. The country is part of the Arabian Peninsula and is located in the southeastern corner, neighbouring Saudi Arabia, the UAE, and Yemen.
4. British Pound (GBP)
1 US Dollar is equivalent to 0.8 British Pounds.
UK-based investors naturally use the Pound Sterling to pay for their daily necessities, but the currency is also well-known on the world stage. This is because the UK’s economy consistently ranks among the largest economies globally, and the UK actively trades with many other nations.
This is the first currency on this list that is free-floating, meaning that it is not pegged to other currencies or assets. Learn How to Trade GBP/USD with different trading strategies.
5. Swiss Franc (CHF)
1 US Dollar is equivalent to 0.89 Swiss Francs.
Switzerland is a landlocked and mountainous country in the middle of Europe with a population of around 9 million people. Switzerland is one of the few European countries that has kept its own currency instead of adopting the euro.
Its economy is heavily integrated with that of EU member states, but the country chose not to adopt the euro to maintain full control of its own currency. Switzerland has a long history of low debt and responsible fiscal policy.
6. Euro (EUR)
1 US Dollar is equivalent to 0.94 euros.
The euro is the official currency of the European Union. All member states except Denmark are required to adopt the euro, although the timeframe and strategy to accomplish this are left to the respective country’s own volition.
The euro is free-floating and not pegged to any other currencies or assets.
7. Bruneian Dollar (BND)
1 US Dollar is equivalent to 1.36 Bruneian Dollars.
Brunei is a small state on the island of Borneo. The country is surrounded by Malaysia on one side and the South China Sea on the other.
The Singapore Dollar and the Bruneian Dollar are interchangeable at par, which means one-to-one, according to the Currency Interchangeability Agreement signed by both countries in 1967. Both currencies are also accepted as legal tender in the other country.
8. Singapore Dollar (SGD)
1 US Dollar is equivalent to 1.36 Singapore Dollars.
The Singapore Dollar is the 10th most-traded currency by value worldwide, likely in part because of Singapore’s status as a financial hub in Southeast Asia.
Singapore’s economy is competitive on the world stage, as it imposes no tariffs on imports. Furthermore, foreign and domestic businesses must be treated equally under Singaporean law.
9. Canadian Dollar (CAD)
1 US Dollar is equivalent to 1.36 Canadian Dollars. The value of Canadian Dollars at the time of writing happens to be close to that of Singapore Dollars, but the currencies are not pegged to each other or common assets.
The Canadian Dollar is one of the most traded currencies against the US Dollar and is commonly held as a reserve currency by many central banks worldwide. The Canadian Dollar has been a free-floating currency since the 1970s.
10. Australian Dollar (AUD)
1 US Dollar is equivalent to 1.56 Australian Dollars.
Australia’s GDP is estimated to be around 2 trillion US Dollars, which, when combined with the country’s relatively low population of around 26 million people, leads to a relatively high GDP per capita of $64,000. This is nearly the same as that of the United States, which is $70,000. It's no surprise, then, that the AUD finds itself among the strongest currencies in the world.
Australia imports and exports a lot of goods to and from Asian countries, such as Japan, China, and South Korea. The country’s exports are mainly agricultural products and minerals.
11. New Zealand Dollar (NZD)
1 US Dollar is equivalent to 1.7 New Zealand Dollars.
New Zealand’s economy is much smaller than Australia’s, but the country features a comparable GDP per capita of around $50,000. Like Australia, the country exports many products to Asian economies. Among these exports are dairy and wool.
12. Bulgarian Lev (BGN)
1 US Dollar is equivalent to 1.82 Bulgarian Lev.
Bulgaria is a country located between Romania and Greece. It also shares a border with Turkey. The country is a member of the European Union, though it has not yet adopted the euro. The lev is the strongest and most stable currency in Eastern Europe, thanks to Bulgaria’s status as a stable and relatively developed economy.
13. Qatari Riyal (QAR)
1 US Dollar is equivalent to 3.64 Qatari Rials.
Qatar’s economy ranks among the highest in the world based on GDP per capita. Most of its riches are the result of petroleum and natural gas deposits the country has. 60% of its GDP is due to the export of these products.
14. Emirati Dirham (AED)
1 US Dollar is equivalent to 3.67 Emirati Dirhams.
The United Arab Emirates is home to Dubai, an international hub where many expatriates live and work. As with other currencies on this list of the strongest in the world, the Emirati dirham derives much of its strength from the export of fossil fuels and resources.
15. Saudi Arabian Riyal (SAR)
1 US Dollar is equivalent to 3.75 Saudi Arabian Riyals.
The Saudi Arabian Riyal is the currency of Saudi Arabia which boasts the largest economy in the Middle East. Since 1986, the Saudi Arabian Riyal has been pegged to the US dollar at 3.7500.
What is the Exchange Rate? Understanding Currency Pairs
The exchange rate for a currency is influenced by the same factors as most other goods, namely supply and demand. The more demand there is for a currency, the more its price will appreciate. Currencies are measured against other currencies, which is why trading currency is always done in pairs.
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, Europeans are more likely to start 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.
How to Trade Forex Pairs
Learn how to trade forex pairs in just 4 steps.
- Open an account with Admirals to access your dashboard.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your forex pair in the search window at the top right to view the live price chart.
- Click Create New Order from the bottom of the screen to open the trading ticket and place your trade.
With Admirals, you can trade on more than 82+ forex CFD pairs. CFDs (contracts for difference), allow you to trade long and short using leverage which magnifies both profits and losses. With the Trade.MT5 account you can trade forex pairs commission-free and with competitive spreads.
Continue Reading
- How Does Forex Work?
- How to Trade Forex for Beginners
- Best Currency Pairs to Trade
- How to Trade the US Dollar Index
FAQs on the Strongest Currency in the World
What are the top 10 strongest currency in the world?
The top 10 strongest currencies in the world at the time of writing in descending order are the Kuwaiti Dinar, the Bahraini Dinar, the Omani rial, the British pound, the Swiss franc, the euro, the Bruneian Dollar, the Singapore Dollar, the Canadian Dollar, and the Australian Dollar.
What are the top 5 strongest currency in the world?
The top 5 strongest currencies in the world at the time of writing are the Kuwaiti Dinar, the Bahraini Dollar, the Omani rial, the British pound, and the Swiss franc.
What is the most valuable currency?
The most valuable currency is the Kuwaiti Dinar. The next most valuable currencies are the Bahraini Dinar, the Omani Rial, the British pound and the Swiss franc rounding out the top 5.
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