Exchange Them for Best Rates
You may have heard that US Dollar (USD) is most traded currency in the world, hence, it is highest currency. Well, it’s not that true. However, dollar is most traded currency yet there are other counties whose money has better exchange rates than that of USD.
In this post we will go through 10 highest currency in the world based on 2018 January 2018 exchange rates. The value of currencies in this post is based on their exchange rates against US dollar.
But, why to compare with US dollar only?
No. 1 – Kuwaiti Dinar (1 KWD = 3.29 USD)
Currency code – KWD
1 KWD = 3.29 USD
The Kuwaiti Dinar is the world’s highest-valued currency against the US Dollar.
Kuwait is a small country with enormous wealth. The high value (rate) of its currency is explained by significant oil exports into the global market.
No. 2 – Bahraini Dinar (2.65 USD)
Currency code – BHD
1 BHD = 2.65 USD (pegged to dollar)
The Bahrain Dinar is the second most valuable currency.
Bahrain is a Persian Gulf island state with a population of just over 1 million people. As in the first case, this country’s largest source of income are the «black gold» exports.
It is interesting that the Bahrain Dinar is pegged to US Dollar exchange rate, and its rate against the US Dollar has remained stable since 2005 already.
No. 3 – Oman Rial (2.60 USD)
Currency code – OMR
1 OMR = 2.60 USD (pegged to dollar)
Oman is a country on the Arabian Peninsula. Thanks to its strategic location, it possesses a developed economy and a high quality of life.
The Oman Rial is also pegged to US Dollar as Bahrain Dinar.
It is remarkable that purchasing power of this currency is so high that the government had to issue 1/4 and 1/2 Rial banknotes. On the picture above, you can see 1/2 Rial (Half Rial).
No. 4 – Jordan Dinar (1.41 USD)
Currency code – JOD
1 JOD = 1.41 USD (pegged to dollar)
It is hard to explain the high value of Jordan Dinar. This country is not economically developed and it lacks essential resources, such as oil.
Nevertheless, one Jordan Dinar costs 1.41 US Dollar, what makes it one of 10 the strongest world currencies.
No. 5 – British Pound Sterling (1.26 USD)
Currency code – GBP
1 GBP = 1.26 USD
Most people think that British Pound is the strongest world currency, but it only closes the top five of this list.
British Colonies issue their own banknotes, which visually differ from banknotes issued by the Bank of England, but they are valued as 1 per 1.
Therefore, there are several of them: Scottish, North Ireland, Manx, Jersey, Guernsey, Gibraltar Pounds, as well as St. Elena Island Pound and Falkland Islands Pound.
Amusingly, native Britons do not always want to accept «other» Pounds as a means of payment.
No. 6 – Cayman Islands Dollar (1.20 USD)
Currency code – KYD
1 KYD = 1.20 USD (pegged to dollar)
Cayman Islands is one of the world’s best tax havens. These islands provided licences for hundreds of banks, hedge funds and insurance companies.
Thanks to its leadership among tax havens, Cayman Islands Dollar costs near 1.22 US Dollar.
No. 7 – European Euro (1.14 USD)
Currency Code – EUR
1 EUR = 1.14 USD
The euro currency has strengthened over the past few years. This allowed it to raise the list of the most powerful currencies. Partially, its strength is explained by the fact that it is the official world currency in European countries among which you will find several economically developed countries.
Besides, Euro is the second reserve world currency enveloping 22.2% of all world savings (US Dollar has 62.3%).
No. 8 – Swiss Franc (1.04 USD)
Currency code – CHF
1 CHF = 1.04 USD
Switzerland is not only one of the richest countries in the world, but it is also one of the most stable. Its banking system had long been known for its formerly resolute «Bank Secrecy».
Besides, its high-tech goods are very well known all around the globe.
Pay attention when you see an original of this banknote. This is the only banknote I saw which has the vertical view.
No. 9 – US Dollar
Currency code – USD
1 USD = 1.00 USD
Owing to USA world economic leadership, its currency achieved such a title as «World Reserve Currency». In other words, you can make dollar payments everywhere (in any country).
No. 10 – Canadian dollar (0.75 USD)
Currency code – CAD
1 CAD = 0.75 USD
The Canadian dollar is the fifth largest reserve world currency. Canadian dollar is often called the «loonie» in honor of the bird depicted on the coin worth 1 dollar.
Out of TEN
Due to the dynamically changing economic and political situation in the world, it is hard for some currencies to remain in this ranking, so here is the list of currencies that left the top ten of previous periods.
Currency code – AUD
1 AUD = 0.73 USD
An interesting fact is that the new series of Australia banknotes, as pictured above, would have a tactile feature (Braille) to help the visually impaired community to tell the value of the banknote.
Also in Australia, the fight against cash is conducted by reducing the share of cash payments when making small retail purchases.
Currency code – LYD
1 LYD = 0.72 USD
The Libyan Dinar has token money called Dirham. It is interesting that one Dinar is equal to 1,000 Dirham, and not 100, as we all used to think.
Currency code – AZN
1 AZN = 0.59 USD
It was a surprise to see Azerbaijani manat in this list. However, the currency of this Central Asian country is a little bit weaker than US Dollar.
The economy of this country is surprisingly strong, and its unemployment rate is low.
Is the high value of the currency a sign of a strong economy?
It is known that the currencies of not very successful countries tend to decrease in value. However, when everything is in order with the economy, we can hardly see the opposite effect.
Indeed, in practice, there were practically no cases when the value of a currency was constantly increasing. The reasons may be different, for a country the constant strengthening of the currency is not profitable, because the population is beginning to actively save funds instead of spending them.
Thus, the high value of the currency only says that inflation processes in the country are under control.
In the context of this article, mention should also be made of Japan and its being one of the strongest economies in the world. At the same time, the value of the Japanese yen is very small, $ 1 = ¥ 109.77.
Information about the highest value of currencies can hardly be used by investors to make any investment decisions. In this case, it is better to consider the most stable currencies.