Ever thought about what is the highest currency in the world
today? Most likely, you’re thinking now about British Pound, US Dollar, or
Euro… Well, guess again. There are at least a few currencies with a higher
value than these three.
We’ve put together a list of the highest-valued currencies
in 2022 compared to the US Dollar and Euro. You’ll be surprised to learn that
being the most widely traded, USD is not even in the middle of the list, but
almost at the end of it.
And if you want to see the flip side, compare this list to
the top 10 of the weakest world currencies to see the significant differences.
Top 10 Highest Currencies in the World
So, which country has the highest currency value? Let’s
start with a quick recap of the most valuable currencies rating to get the
entire picture:
|
# |
Currency |
USD
rate |
EUR
rate |
Code |
|
1 |
Kuwaiti
Dinar |
3.25
USD |
3.13
EUR |
KWD |
|
2 |
Bahraini
Dinar |
2.66
USD * |
2.56
EUR |
BHD |
|
3 |
Omani
Rial |
2.60
USD * |
2.50
EUR |
OMR |
|
4 |
Jordanian
Dinar |
1.41
USD * |
1.36
EUR |
JOD |
|
5 |
Cayman
Islands Dollar |
1.22
USD |
1.17
EUR |
KYD |
|
6 |
British
Pound Sterling |
1.19
USD |
1.15
EUR |
GBP |
|
7 |
Swiss
Franc |
1.06
USD |
1.02
EUR |
CHF |
|
8 |
European
Euro |
1.04
USD |
1 EUR |
EUR |
|
9 |
US
Dollar |
1 USD |
0.96
EUR |
USD |
|
10 |
Canadian
Dollar |
0.75
USD |
0.72
EUR |
CAD |
And now, we'll get a closer look at top 10 currencies and
find out what makes them so highly valued.
1 – Kuwaiti Dinar ($3.25)
Currency code – KWD
Kuwaiti Dinar rates:
1 KWD = 3.25 USD (Kuwaiti Dinar to US Dollar)
1 KWD = 3.13 EUR (Kuwaiti Dinar to Euro)
Today, Kuwaiti Dinar is the highest-valued currency in the
world, estimating at $3.25 per Dinar. Such a high value is explained by
Kuwait's stable economy and significant oil exports into the global market,
producing almost 95% of the country's revenue.
According to the estimates, about 9% of the global oil
reserves are located on its territory. Petroleum production here is the easiest
and, therefore, the cheapest among other countries.
Besides, Kuwait is a tax-free country with a very low
unemployment rate.
All of this makes it rank 8th in the list of countries with
the highest GDP per capita.
Kuwaiti Dinar was first introduced in 1960 after the country
gained its independence from the United Kingdom and was initially equivalent to
one Pound Sterling.
Since 2003 the currency was pegged to the US Dollar, but in
2007 the government decided to peg the Kuwaiti Dinar to the weighted currency
basket.
2 – Bahraini Dinar ($2.66)
Currency code – BHD
Bahraini Dinar rates:
1 BHD = 2.66 USD (Bahraini Dinar to US Dollar)
1 BHD = 2.56 EUR (Bahraini Dinar to Euro)
The world's second most valuable currency is the Bahraini
Dinar, with a conversion rate of $2.66 per one Dinar. It is pegged to the US
Dollar, and its exchange rate against the USD remained stable since 1987.
Bahrain is a Persian Gulf Island state with a population of
just over 1 million people. As with Kuwait, its largest source of income is the
global gas and petroleum export.
Before Bahrain became one of the leading oil-producing
countries, the major profit-gaining industry here was pearl mining. However, in
the 1930th the production ceased due to pearl cultivation in Japan.
Interestingly, Saudi Riyal is officially a legal tender in
Bahrain next to Dinar. Their exchange rate is fixed as well and equals 1 Dinar
= 10 Riyals.
3 – Omani Rial ($2.60)
Currency code – OMR
Omani Rial rates:
1 OMR = 2.60 USD (Omani Rial to US Dollar)
1 OMR = 2.50 EUR (Omani Rial to Euro)
The Omani Rial closes the top three of most expensive
currencies in the world with the conversion rate of 2.60 USD to one Rial –
nearly double the value of the British Pound.
This currency has been pegged to the US Dollar since 1973.
Remarkably, Dinar’s purchasing power is so high that the
government had to issue 1/4 and 1/2 Rial banknotes. In the picture above, you
can see 1/2 Rial (Half Rial) note.
Like with other countries on the Arabian Peninsula, Oman has
a developed economy and a high quality of life thanks to oil production.
But due to reserves coming to an end, the Omani government
decided to diversify the income resources by developing gas production,
metallurgy, and tourism.
4 – Jordanian Dinar ($1.41)
Currency code – JOD
Jordanian Dinar rates:
1 JOD = 1.41 USD (Jordanian Dinar to US Dollar)
1 JOD = 1.36 EUR (Jordanian Dinar to Euro)
The Jordanian Dinar was initially pegged to the US Dollar at
a higher value. For the last 20 years, the country managed to maintain this
peg. So today, the Dinar has 4th place on the list of the most expensive
currencies.
Nevertheless, it is a bit hard to explain the high value of
the Jordanian Dinar.
The country is not economically developed, and it lacks
essential resources, such as oil. Jordan has significant external debt, so it
is highly dependent on neighboring countries and the IMF.
5 – Cayman Islands Dollar ($1.22)
Currency code – KYD
Cayman Islands Dollar rates:
1 KYD = 1.22 USD (Cayman Islands Dollar to US Dollar)
1 KYD = 1.27 EUR (Cayman Islands Dollar to Euro)
The Cayman Islands Dollar is the only Caribbean currency on
the list of the highest ones. The reason is that this autonomous British
territory is one of the world’s best tax havens and one of the five largest
offshore financial centers.
The country provides licenses for hundreds of banks, hedge
funds, and insurance companies.
6 – British Pound Sterling ($1.19)
Currency code – GBP
British Pound Sterling rates:
1 GBP = 1.19 USD (British Pound Sterling to US
Dollar)
1 GBP = 1.15 EUR (British Pound Sterling to Euro)
Most people consider that British Pound holds the highest
monetary value among other currencies. But it is not the case. Its rate against
the US dollar puts GBP only in the 6th position among the highest currencies.
Though, it is still the oldest in circulation and one of the
most traded currencies in the world. The GBP/USD pair, commonly known as “the
cable,” is the third most traded in the forex market.
Pound Sterling is the national currency of England, Scotland, Wales, and Northern Ireland, as well as the parallel currency of the crown dependencies: Guernsey, Jersey, and the Isle of Man.
British colonies like Falkland Islands, Gibraltar, Saint
Helena, etc., issue their own banknotes valued as 1 per 1. But they differ
visually from notes issued by the Bank of England.
Amusingly, native Britons don’t always want to accept
"other" Pounds as a means of payment.
7 – Swiss Franc ($1.06)
Currency code – CHF
Swiss Franc rates:
1 CHF = 1.06 USD (Swiss Franc to US Dollar)
1 CHF = 1.02 EUR (Swiss Franc to Euro)
The Swiss Franc is one of the strongest and most stable
currencies worldwide. It is the sixth most traded currency and the only one
that is unaffected by inflation.
However, it is not a surprise considering that Switzerland
is not only one of the richest countries in the world, but also belongs to the
most stable ones.
Switzerland has a strict monetary policy and low debt
levels, making Franc a safe bet for investors while trading or storing
currency.
By the way, Switzerland has a negative interest rate on
deposits. It means the owner has to pay extra for keeping his wealth in the
bank. This decision by the Swiss Central Bank (SNB) contained the rapid
strengthening of the Franc after the abolition of the fixed rate from the Euro.
8 – European Euro ($1.04)
Currency Code – EUR
European Euro rate:
1 EUR = 1.04 USD (European Euro to US Dollar)
The Euro has strengthened over the years, which allowed it
to hold a strong place in the list of the most powerful world currencies.
Partially, its value is explained by the fact that it is the
official currency for 19 European countries, among which you will find several
economically developed ones.
Today, EUR is the second reserve currency enveloping 25% of
all world savings (62.3% is in USD).
About 25 countries pegged their currencies to Euro at a
fixed rate.
Euro is one of the most widely used currencies in the world.
It is the second most traded currency on the forex market after the US Dollar.
9 – US Dollar
Currency code – USD
US Dollar rate:
1 USD = 0.96 EUR (US Dollar to Euro)
Today, the US Dollar is the most traded currency in the
forex market. Owing to the US economic leadership, it gained the title of the
primary “World Reserve Currency.” It has the highest demand and is involved in
more than 85% of daily forex trades.
All of this makes the US Dollar one of the costliest world
currencies.
As of December 2020, there were about 2.10 trillion USD in
circulation. 70% of banknotes, however, are circulating outside the US.
Interestingly, there were times when along with traditional
nominations, notes with the face value of $1,000, $5,000, $10,000, and $100,000
were issued.
10 – Canadian Dollar ($0.75)
Currency code – CAD
Canadian Dollar rates:
1 CAD = 0.75 USD (Canadian Dollar to US Dollar)
1 CAD = 0.72 EUR (Canadian Dollar to Euro)
The Canadian Dollar closes the top-ten highest currencies
ranking. It is the sixth-largest reserve currency and the sixth most traded
one. Around 5% of daily forex trades involve CAD.
Canada has the second-largest uranium supply in the world as
well as large reserves of crude oil (13.21%), second to Saudi Arabia and
Venezuela.
Therefore, the Canadian Dollar depends on global oil price
fluctuations. And as the major importer of Canadian oil is the neighboring US,
CAD also correlates to USD value rise-and-falls.
The Canadian Dollar is often called the "loonie" in honor of the bird depicted on the one-dollar coin.
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