Investopedia reported that while the US dollar dominates global currency trading and markets, and the green currency has long been the most popular among foreign governments, it is not the most valuable currency globally.
The report points out that the Kuwaiti dinar still holds this advantage, being valued at $3.24. This makes the Kuwaiti dinar not only more valuable than the US dollar but also ahead of the euro, the Japanese yen, and most other global currencies, which often make economic headlines.
The site developed a list of the most valuable international currencies, explaining the reasons behind their high rankings. It highlighted the combination of natural wealth and economic factors that have propelled these currencies to the top.
The following is a list of the 5 most valuable currencies around the world:
1. Kuwaiti Dinar: $3.24
As of January 10, 2025, Kuwait’s currency, the Kuwaiti dinar, is the most valuable in the world, valued at $3.24. Over the past year, its value has fluctuated between $3.12 and $3.30.
The website pointed out that Kuwait benefits from a strong economy, with an unemployment rate of just 2%. Oil, one of the country’s main exports, remains the focal point of its economic activity.
2. Bahraini Dinar: $2.65
The price of the Bahraini dinar is $2.65, having traded between $2.54 and $2.65 over the past year. The Bahraini dinar remains very stable due to its official peg to the US dollar.
Bahrain’s economy is more diversified than some other countries on the list, with significant economic activity in banking, finance, tourism, and, of course, the oil sector.
3. Omani Rial: $2.59
Oman, like Bahrain, pegs its currency to the US dollar. The official exchange rate of the Omani rial to the US dollar is 2.6, though the rial can trade slightly above or below this value. Over the past year, the price of the Omani rial in the currency markets ranged between 2.49 and 2.6 per dollar.
The Sultanate of Oman’s economy depends primarily on oil. However, Muscat, like its Gulf neighbors, has made efforts to diversify its economy into new sectors, aiming to reduce reliance on oil and stimulate growth in areas such as tourism, manufacturing, and services.
4. Jordanian Dinar: $1.41
The Jordanian dinar is an exceptional case in the list of the most valuable currencies globally, as Jordan is poor in natural resources and faces significant economic challenges. These challenges include the massive influx of displaced Syrians, who make up about 12% of the Kingdom’s population, as well as issues related to climate change and the impact of geopolitical events in recent years.
The site pointed out that Jordan has linked its currency to the US dollar since the mid-1990s, with the official exchange rate for the dinar ranging between 1.41 and 1.7 per dollar. It also highlighted that Jordan’s economy relies heavily on tourism, remittances, and foreign aid, with over one billion dollars in aid flowing into the country annually.
5. British Pound: $1.23
The value of the British pound is rooted in centuries of global economic influence and London’s status as a major financial center. Despite the political and economic challenges posed by Brexit, along with other significant issues in recent years, the pound remains supported by the diversification of the British economy and the strength of its financial services sector.
What makes a currency valuable?
Investopedia confirmed that several factors affect the value of a currency, including its supply in the currency market, interest rates, and inflation. A currency becomes more valuable when it is scarcer in the market, and its value is further supported by higher interest rates.
However, the most significant factors influencing currency value lie in the broader economic landscape. These include political stability, which attracts foreign investors; natural resource wealth, which increases international demand; and monetary policies, particularly when a country’s central bank intervenes directly in global currency exchange markets to influence exchange rates.
While the Kuwaiti dinar ranks first in the world in terms of value, the most prominent challenge lies in maintaining the stability and value of the currencies mentioned above.
Middle Eastern countries with the highest-valued currencies globally have leveraged their oil wealth and pegged their currencies to the US dollar to ensure long-term stability. In contrast, the pound sterling derives its value from its status as a financial powerhouse and its stable, diversified economy.
Source: Al Qabas
