Highest Currency in the World – The idea that the U.S. dollar is the highest currency in the world is so common that practically everyone holds it in high regard. But that’s not true; the U.S. dollar isn’t the most valued or highest currency; it’s just the most-used currency.
The Kuwaiti Dinar (KWD) is the world’s highest and most valuable currency in terms of monetary worth. The strength of the Kuwaiti currency can be attributed to its active participation in the oil and gas sector. Kuwait is a prominent global oil exporter, possessing extensive reserves distributed throughout the country.
In addition, here in this article, we have provided a comprehensive list of the top 10 highest currencies in the world, ranked according to their relative worth compared to the U.S. dollar. Read on!
Top 10 Highest Currencies in the World in 2024
1. Kuwaiti Dinar (KWD)
The Kuwaiti Dinar is the highest currency in the world. It is the official currency of the State of Kuwait. Today, 1 KWD is equal to 3.27 USD. The Kuwait State is a high-income economy that is bolstered by its excessive wealth in crude oil.
Kuwait has a mono-economy as the country relies on revenue from petroleum exports. In the last three years, there has been a surge in entrepreneurial activities and startups in the country. Due to the growth of Instagram businesses, there has also been a consequent rise in commerce from the informal sector.
Further, Kuwait has become a major lender and provider of economic assistance to other countries. Kuwait has the Kuwaiti Fund for Arab Economic Development, which is a Kuwaiti agency that provides monetary and technical assistance to other countries. It aims to assist a lot of developing countries around the world.
The Kuwaiti Dinar was first introduced in the early 1960s. That was equivalent to one pound sterling at the time. The Dinar replaced the Gulf rupee, the currency used in the Arabian Peninsula.
2. Bahraini Dinar (BHD)
The Bahraini Dinar is among the highest currencies in the world. The currency is legitimately utilized by the Kingdom of Bahrain. Today, 1 BHD is equal to 2.65 USD.
In successive years, the country has emerged as an economic and technological hub where banking and commerce thrive. Bahrain is wealthy in oil and financial services.
The city of Manama is now regarded as a major financial hub. The country is also known for its strong banking and financial services sector, which is being bolstered by petroleum imports. In fact, petroleum production, export and processing are Bahrain’s economic mainstay, providing more than 65% of government revenue. The country has a flourishing Aluminium production industry.
Bahrain launched the Bahraini Dinar in 1965. It replaced the former Gulf rupee currency.
3. Omani Rial (OMR)
The Omani Rial is a costly currency. It is the official currency of the Sultanate of Oman. The country is probably the wealthiest and most diversified in the entire Middle East. Today, 1 OMR is equal to 2.60 USD.
This currency is backed by productive oil exports. Oman has the twenty-fifth largest gas reserve in the world. The citizens of Oman (Omanis) have a rich quality of life due to their prosperous economy.
Oman’s economy is very diversified, but it depends very much on petroleum exports. Also, the country has a burgeoning tourism industry. Oman is a major importer of food due to the fact that less than 2% of the country’s land is dedicated to agricultural cultivation.
The Omani Rial was introduced in 1970 as a replacement for the Gulf Rupee. The name Rial was added because of the 1970 regime change. This even led to a change in the country’s name.
4. Jordanian Dinar (JOD)
The Jordanian Dinar has been used as the official currency of the Kingdom of Jordan since 1950. It is currently among the highest currencies in the world and is widely transacted and accepted in the Gulf region. Today, 1 JOD is equal to 1.41 USD.
The country plays host to a sturdy service industry; thus, it is attractive to direct foreign investment. Though the petrodollar does not back the country’s wealth, its currency is increasingly valued.
Jordan is currently regarded as an “upper-middle-income” country. Jordan’s economy, compared to other Arabian countries, is diversified. It has flourishing transportation, communication, construction and manufacturing industries. It is on record that Jordan is the first Arabian country to sign a free trade agreement with America.
Jordan also has greater access to exports into European markets than other Middle Eastern countries. The country has one of the most educated and highly skilled people due to its ultra-modern learning system, which is a major source of direct foreign investment.
5. British Pound (GBP)
The British Pound is among the highest currencies in the world. It is widely accepted and valued around the globe. It is the official currency of the United Kingdom (UK), which is one of the most highly developed countries. The currency is also the third-largest reserve currency in the world. Today, 1 GBP is equal to 1.30 USD.
The United Kingdom’s economy is dominated by its service sector, making London the leading financial center in the world and the biggest city GDP in Europe. Tourism also bolsters the UK economy, as the country hosts more than 20 million tourists yearly. The UK is among the world’s most highly-sought tourist destinations.
GBP is also the official currency of Guernsey, Jersey, Gibraltar, and Tristan da Cunha. It is one of the oldest currencies in the world.
6. Gibraltar Pound (GIP)
The Gibraltar pound is Gibraltar’s official currency. It is pegged to and can be exchanged at a one-to-one ratio with the British pound sterling (meaning one GIP equals one GBP). Today, 1 GIP is equal to 1.30 USD.
This currency was first introduced in the 1920s. Additionally, the Government of Gibraltar is the main authority responsible for overseeing the GIP currency, including the production of coins and the printing of banknotes. Gibraltar’s economy is becoming more dependent on various industries, including E-gaming and tourism.
Gibraltar is situated near the southernmost point of Spain and covers an area of only 2.6 square miles. It is legally recognized as a British territory.
7. Cayman Islands Dollar (KYD)
The Cayman Islands Dollar is used mostly in the Cayman Islands and is among the highest currencies in the world. Today, 1 KYD is equal to 1.20 USD.
Cayman Islands is known as a tax haven, where the wealthiest of the wealthy stack their monies in. The country has a very high standard of living and very few unemployed citizens. The economy thrives on indirect taxation and tourism.
The Cayman Islands’ economy depends on its financial services and tourism industry. The country also has a low tax rate, making it an attractive tax haven. Over 95,000 companies exist on the island, surpassing the country’s population. The government derives its revenue from indirect taxation.
After a split from Jamaica, the Cayman Islands launched her dollars in 1972. The Cayman Islands initially used Jamaican dollars.
8. Swiss Franc (CHF)
The Swiss Franc is among the most valued and highest currencies in the world. It was introduced in 1850 and is the official currency of Switzerland. Today, 1 CHF is equal to 1.13 USD.
Switzerland is known for its highly diversified and prosperous economy. The country is home to the financial hubs of Geneva and Zurich, and it has the highest human development index and per capita income. It is also a tax haven of some sort due to its low tax rate.
Furthermore, Switzerland is a high-tech economic country. Although the country has a notorious banking system, it is one of the biggest exporters in the world and has the most competitive economy.
9. Euro (EUR)
Twenty (20) countries use the Euro in the European continent. Next to the U.S. Dollar, the Euro is the most traded currency worldwide. Thus, it is one of the highest currencies. Today, 1 EUR is equal to 1.09 USD.
The currency is used by over 341 million persons each day. The countries that have adopted the Euro as their official currency are wealthy and prosperous. The Euro was launched in 1999, and it is the brainchild of the European Union.
10. United States Dollar (USD)
The U.S. Dollar is the official legal tender of the United States of America and the currency with the largest reserve worldwide. It is acceptable in every country and often highly valued. Also called the greenback, it is backed by the United States’ global leadership in politics, technology, and economic viability.
The U.S. Dollar is one of the strongest currencies in the world and is used as a benchmark to rate other currencies. It is not surprising that it accounts for over 80% of global foreign exchange transactions.
FAQs
Do Countries with high currency value usually have a strong economy?
That is true. A popular fact is that the viability or strength of a country’s economy affects the country’s currency. For instance, a strong economy will keep inflation low, hence boosting the spending power of the currency. A strong economy will help bolster massive demand for money because of its high interest rates.
What are the safest currencies for saving and investing?
The safest currencies in the world are always in high demand because of their popularity and widespread use both in stable and uncertain times.
Whether there is a market disruption or decline, the safest currencies are strong enough to withstand variabilities. Here are a few of them: U.S. Dollar, British Pound, Gold, Cryptocurrency (such as Bitcoin), Polish złoty, Swiss Franc, and Norwegian Krone.
What are the world’s weakest currencies?
Some of the weakest currencies in the world include the Iranian Rial (IRR), Vietnamese Dong (VND), Sierra Leonean Leone (SLL), Lao or Laotian Kip (LAK), Indonesian Rupiah (IDR), Uzbekistani Som (UZS), Guinean Franc (GNF), Paraguayan Guarani (PYG), Cambodian Riel (KHR), and Ugandan Shilling (USH).
Also check: Top 10 currencies in Africa
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