The Bankrate website released a list of the world’s strongest currencies, with the Kuwaiti dinar ranking first.
Currently, traders receive 0.31 dinars per US dollar. The report attributes the dinar’s strength to Kuwait’s vast oil reserves, which account for approximately 7% of global reserves.
While the Kuwaiti dinar is the strongest currency, the Swiss franc is considered one of the most stable, attributed to Switzerland’s political neutrality, low debt-to-GDP ratio, and conservative monetary policy.
The strength of a currency serves as a key indicator of a country’s economic health, political stability, and fiscal policies. While numerous factors impact currency values, sustained economic performance and robust institutional stability often play decisive roles in shaping a currency’s global standing. Below is a list of the 10 strongest currencies in the world:
1. The Kuwaiti Dinar:
The Kuwaiti dinar (KWD) is the strongest currency globally, valued at 0.31 dinars per US dollar. Its strength stems from Kuwait’s vast oil reserves, comprising 7% of global supply, and its stable economy.
2. The Bahraini Dinar:
The Bahraini dinar (BHD) ranks as the second-strongest currency globally, with one US dollar equaling 0.38 Bahraini dinars. Bahrain’s oil wealth significantly supports its currency’s strength, while the country’s attractive investment environment further enhances the dinar’s stability.
3. Omani Riyal:
The Omani riyal (OMR) is the third strongest currency globally, with one US dollar equaling 0.39 Omani riyals. Oman’s production of over one million barrels of oil daily since the 1960s has played a crucial role in bolstering the value of its currency.
4. The Jordanian Dinar:
The Jordanian dinar (JOD) ranks as the fourth strongest currency, with one US dollar equal to 0.71 Jordanian dinars. Despite lacking significant oil reserves, Jordan’s diverse resources, including minerals, help sustain the strength of its currency.
5. The British Pound:
The British pound (GBP) ranks as the fifth strongest currency, with one US dollar equal to 0.82 pounds. Its strength is attributed to its long-standing history, economic stability, and London’s position as a leading global financial center.
6. Gibraltar Pound:
The Gibraltar pound (GIP) is equal in value to the British pound, with one US dollar equal to 0.82 Gibraltar pounds. Its strength is closely tied to the British pound and supported by Gibraltar’s thriving tourism and financial sectors.
7. Cayman Islands Dollar:
The Cayman Islands dollar (KYD) ranks seventh, with one US dollar equal to 0.83 Cayman dollars. Its strength is driven by the territory’s favorable tax system, which lacks direct taxes, along with strong economic activity.
8. Swiss Franc:
The Swiss franc (CHF) ranks as the eighth strongest currency, with one US dollar equal to 0.92 Swiss francs. It is renowned as a safe haven during international crises, supported by Switzerland’s stable monetary policy.
9. The Euro:
The Euro (EUR) ranks as the ninth strongest currency, with one US dollar equal to 0.98 euros. Used in 20 European Union countries, the euro’s strength is bolstered by the economic powerhouses of Germany, Spain, and other EU member states.
10. The US Dollar:
Despite its global dominance, the US dollar (USD) ranks tenth among the strongest currencies. Since the end of World War II, it has served as the world’s primary reserve currency, allowing the United States to borrow at low interest rates.
