Have you ever wondered which countries have the top 10 highest currencies in the world? Naturally, when you think of the strongest currencies in the world, you think of the US Dollar and British Pound or Euro. However, you’ll be surprised to find that these currencies are only more popular and widely used but are not the highest currencies in the world. In fact, the most expensive currencies don’t always belong to the most popular or wealthiest nations.
Currency strength is a measure of the relative purchasing power of a national currency when it is traded for products or against other currencies. Read on to discover the countries with the top 10 highest currencies in the world that are used on a daily basis.
In this post, the US dollar is used as the fixed base currency owing to its position as the most traded currency in the world.
From highest to lowest, these are the top 10 highest currencies in the world:
The Kuwaiti Dinar is the official currency of Kuwait, a country that lies between Saudi Arabia and Iraq in the Persian Gulf. It is currently the strongest and highest currency in the world and is pegged to the US dollar at a conversion rate of 1 KWD = $3.28. Kuwait is one of the wealthiest nations in the world owing to its oil reserve which contributes to over 80% of the country’s GDP. As a result, this currency sits at the top of every list regarding the highest currencies in the world.
Bahraini Dinar (BHD)
The Bahraini Dinar is the official currency of Bahrain.
Like Kuwait, Bahrain is located in the Persian Gulf and the major contributor to its economy is the oil and gas industry. This industry is responsible for over 85% of the country’s gross revenue. Currently, the Bahraini Dinar is pegged to the US dollar at a conversion rate of 1 BHD = $2.65.
It is important to note that the BHD has maintained a relatively stable rate against the US dollar because it is pegged to the IMF SDR. Another thing worthy of note is that Saudi Arabian Riyals are also considered legal tender in Bahrain at a fixed rate of 1 BHD = 10 Riyals.
As a result, the Bahraini Dinar ranks as one of the top 10 highest currencies in the world.
Omani Rial (OMR)
The Omani Rial is the official currency of Oman, officially known as the Sultanate of Oman. Oman is situated on the southeastern coast of the Arabian Peninsula and is a small nation dependent on natural resources for its revenue. The Omani Rial is currently pegged to the US dollar at $2.60. The peg helps to avoid severe currency fluctuations that may destabilize the Oman economy.
Jordanian Dinar (JOD)
The Jordanian Dinar is the official currency of Jordan, an Arab nation on the east bank of the Jordan river. The JOD is also an acceptable legal tender in West Bank, a region located in Israel. The Jordanian Dollar makes the list of the top 10 highest currencies in the world because it is currently pegged to the US dollar at a conversion rate of 1 JOD = $1.41.
Pound Sterling (GBP)
The Pound Sterling is the official currency of the United Kingdom and nine of its associated territories. GBP is the world’s oldest currency that is still in use and that has been in continuous use since its inception.
It is worthy of note that the GBP is not only strong but also very influential in global trade and finance. It is the 4th most used currency globally and it is also part of the basket of IMF Special Drawing Rights.
The current conversation rate is pegged at 1 GBP = $1.24.
Cayman Island Dollar (KYD)
The Cayman Island Dollar is the official currency of the Cayman Islands including Grand Cayman, Little Cayman, and Cayman Brac.
The Cayman Islands has become a major global financial center due to its favorable tax policy. No taxes are applied on any income stored or earned within the jurisdiction. This is why it has become a prestigious attraction for big corporations and wealthy Individuals. As a result, the Cayman Island Dollar has rightfully earned its spot on the list of the highest currencies in the world.
The KYD has been pegged to the US dollar at the fixed rate of $1.21.
The Euro is the official currency of 19 states of the European Union and is one of the world’s youngest currencies. Nevertheless, the euro is now the 2nd most used currency globally, both in reserve and circulation. In addition, there are about 25 countries that have pegged their national currency to Euro.
The Euro floats freely in the market and is not pegged to any other currency. Currently, the euro exchanges for the US dollar at a rate of $1.09.
Swiss Franc (CHF)
The Swiss Franc is the official currency of Switzerland. Because of its robust and stable nature, the CHF has been nicknamed the “safe haven” currency. Over the years, Switzerland has witnessed stable economic growth owing to its sound fiscal and monetary policies. The CHF is the 7th most traded currency globally and currently exchanges for the US dollar at a rate of $1.08.
As a result, the Swiss Franc (CHF) earns a spot as one of the top 10 highest currencies in the world.
US Dollar (USD)
The US dollar is the official currency of the United States of America and its associated territories. In terms of global trade and finance, the USD has become the most powerful currency. It is the most used currency in the world, both in reserve and circulation. It is important to note that of all USD in circulation, only 30% is within the United States of America.
Bahamian Dollar (BSD)
The final slot on this list of the top 10 highest currencies in the world is occupied by the Bahamian Dollar. It is the official currency of the Commonwealth of The Bahamas. Like The Cayman Islands, the country is also considered a “tax haven” as it charges no tax on income stored and earned. The BSD is pegged to the US dollar on a par-to-par basis, hence, currently exchanges for the US dollar at a rate of $1.00.