By Akinsuroju Olubunmi,
Currencies: Top 10 Strongest in 2024
The United Nations acknowledges 180 currencies globally as legal tender. However, the economic value or strength of a currency is determined by its purchasing power in transactions involving goods, services, or other currencies, not by its popularity or usage.
Currencies are vital to the global economy, representing the strength and stability of their respective countries. They serve as tools for international trade and finance and as indicators of a nation’s economic health and governance.
Here are the top 10 strongest currencies in the world, as highlighted by Forbes:
Kuwaiti Dinar
The Kuwaiti dinar is the strongest currency in the world, with 1 dinar equivalent to 3.26 dollars, or $1 equaling 0.31 Kuwaiti dinar. Introduced in 1961, the dinar is bolstered by Kuwait’s substantial oil reserves, thanks to its strategic location on the Persian Gulf between Saudi Arabia and Iraq.
Bahraini Dinar (BHD)
The Bahraini dinar ranks highly, supported by Bahrain’s diversified economy, which includes oil and gas, finance, and tourism. Introduced in 1965, 1 dinar equals 2.65 dollars, or $1 equaling 0.38 Bahraini dinar.
Omani Rial (OMR)
The Omani rial is another strong currency, with Oman’s economy largely dependent on its oil reserves. Introduced in the 1970s, 1 rial equals 2.60 dollars, or $1 equaling 0.38 Omani rial.
Jordanian Dinar (JOD)
The Jordanian dinar is the fourth strongest currency, with 1 dinar valued at 1.41 dollars, or $1 equaling 0.71 Jordanian dinar. Introduced in 1950, its value is supported by Jordan’s careful fiscal policies and diverse economy, including tourism, banking, and pharmaceuticals.
British Pound (GBP)
The British pound is the fifth strongest currency, with 1 pound valued at 1.22 dollars, or $1 equaling 0.82 British pounds. The pound, first introduced in the 1400s and decimalized in 1971, operates as a free-floating currency.
Cayman Islands Dollar (KYD)
The Cayman Islands dollar is the 6th most valuable currency, used in the Cayman Islands, a British territory known for being a tax haven. 1 Cayman dollar equals 1.20 dollars, or $1 equaling 0.83 Cayman Islands dollar.
Gibraltar Pound (GIP)
The Gibraltar pound ranks seventh, with 1 pound valued at 1.22 dollars, or $1 equaling 0.82 Gibraltar pounds. Introduced in the 1920s, the Gibraltar pound is pegged at par with the British pound.
Swiss Franc (CHF)
The Swiss franc is the 8th strongest currency, introduced in 1850. Its value surged during the European debt crisis and US monetary policy changes. 1 franc equals 1.08 dollars, or $1 equaling 0.92 Swiss francs.
Euro (EUR)
The euro holds the ninth position, with 1 euro valued at 1.08 dollars, or $1 equaling 0.93 euros. Serving as the official currency in 20 out of the 27 EU countries, the euro was introduced with coins and banknotes in 2002.
U.S. Dollar (USD)
The US dollar, used globally and involved in 88.3% of daily foreign exchange trades, is the tenth strongest currency. It is the currency of the world’s richest country but ranks only 10th in strength.
Currencies: Top 10 Strongest in 2024