The most expensive and the most traded currencies in the world

Top 8 strongest currencies in the world

In the early months of 2023, the COVID-19 pandemic continued to drive movement in financial markets. A key factor for most currencies was the speed of vaccination of the population of each country. Since January 2023, attention has largely shifted to the situation in Ukraine and more traditional topics, namely macroeconomics and monetary policy. In recent months, the most important factor affecting financial markets has been a sharp increase in inflation. It is caused by a jump in energy prices and a significant shortage of supply.

Also in 2023, the top strongest currencies do not necessarily include those that are very popular. The highest exchange rates are achieved by the currencies of the Arabian Peninsula. The Arab countries are strong economically, but their currencies are not the most important. To some extent, the price of a currency is influenced by the popularity of its use in transactions. It is this demand that makes the currencies of the Arab countries not the most quoted, although their currencies are more expensive than that of many other nations.

Taking into account all the above facts, the experts at the Traders Union have compiled a list of the strongest currencies in the world and will explain each position in TU’s rating.

US Dollar (USD)

It is included in a limited group of reserve currencies that are most frequently used in financial transactions and is also part of the permanent reserves held by central banks worldwide. The International Monetary Fund (IMF) reports that the share of the US currency in world reserves is almost 60%. For comparison, reserves in euros exceed just over 20%.

The dollar is subject to small fluctuations in value, so long-term investment in it can be a good decision.

Singapore dollar (SGD)

A dynamic and competitive economy undoubtedly affects the value of this currency. The high level of economic freedom in the state is also important. These mechanisms are demonstrated in the case of the Singapore dollar. Economic growth in the country, which has been ongoing since 2010, further stabilizes the currency. It is considered one of the strongest currencies in the world, highly valued and exchanged freely in the Asia-Pacific region. Since 2020, the SGD has been ranked 13th in terms of frequency of convertibility on the global stage.

The Singapore dollar is closely linked to the Brunei dollar at a ratio of 1:1. Hence, both currencies are equally important in Brunei and Singapore, often being used interchangeably thanks to a currency exchange agreement between the two countries. In practice in Singapore, this principle is forgotten in everyday life, but in Brunei, some citizens have their savings in Singapore money.

The most common SGD banknotes in circulation are $2, $5, $10, $50, $100, and $1,000. The current series was first issued in 1999 and is paper-based.

Swiss franc (CHF)

The list of the strongest currencies in the world is not possible without the Swiss franc. The beginning of its history dates back to the period of French domination and the Napoleonic invasions. Since then, Switzerland has not experienced a single major war. However, it wasn’t until the 20th century that the Swiss Confederation decided on a single banknote valid throughout the country.

For many years, the CHF has been considered a safe investment asset. In general, Swiss francs tend to rise in value during economic crises and financial market turmoil. For this reason, it can be seen more as a way to preserve the value of money over time.

Since the introduction of the euro, the Swiss franc has lost its importance as a currency of diversification, mainly due to the growth in the quality of the new currency, based on the strong and stable economies of Western Europe. Only after the beginning of the crisis in the eurozone, did the Swiss franc once again become in demand by foreign investors. More expensive fuels, gas, and oil, as well as strong growth in the energy market, mean that the franc has attractive growth prospects.

Euro (EUR)

The financial crisis has significantly reduced the level of confidence in the foreign exchange market in the euro and the European Central Bank as an institution that manages a single monetary policy. Although the European currency is improving year by year, the effects of the economic downturn are still visible.

However, the currency introduced in the EU zone still enjoys huge confidence from the markets. This is explained by the fact that the EUR is a means of payment in all 19 countries of the European Union. The euro also participates in the money circulation of the other six countries that have adopted this currency voluntarily, including Kosovo, Andorra, and Montenegro.

The exchange rate of the European currency largely depends on the US dollar, so when the USD starts to strengthen in Forex, the euro weakens. Here the dependence is directly proportional. The EUR exchange rate is influenced by the economic and political situation in European countries. Unfortunately, the situation in Ukraine also negatively impacts the euro in the international arena. This is also true for inflation in the EU countries that use the euro as legal tender. However, in 2023 the euro is undoubtedly the strongest currency in Europe.

Jordanian dinar (JOD)

The currency is quoted at about $0.70 per 1 Jordanian dinar at the current rate. It, like the previously mentioned currencies, is pegged to the US dollar, which can help to benefit from a stable currency system. Jordan is a small country that does not have large natural or oil resources. Therefore, its energy needs depend on external sources.

Omani rial (OMR)

The OMR is currently worth a little over $0.39, which is why it is on the podium of the most expensive currencies in the world. The Omani rial was introduced in the 1970s and is also pegged to the US dollar. Accordingly, a tight exchange rate maintains the stability of the Omani currency and protects it from volatility.

The economy of the state depends on oil, and its price has an impact on the situation in the country. However, the Omani authorities are constantly trying to become independent of the cost of a commodity, so they are increasingly focusing on the development of tourism, production, and logistics.

Bahraini dinar (BHD)

The official currency of Bahrain means little in the world economy, yet its rate is still high. The Bahraini dinar is currently pegged to the US dollar. The state’s economy ranks 10th in the world in terms of freedom and is heavily dependent on oil and gas. In general, Bahrain has the fastest growing economy among the Arab nations, which is reflected in the strength of its currency.

Kuwaiti dinar (KWD)

This is the most expensive currency in the world in 2023. It was introduced into circulation in 1961, replacing the Persian Gulf rupee. However, during the Iraqi attack on Kuwait in 1990, Iraqi dinars were quoted for some time. After liberation, the Kuwaiti dinar returned with a new series of banknotes, marking economic growth. It is driven by the extraction of products such as oil and petrochemicals, so more than 80% of government revenue comes from the oil industry. It can be said that Kuwait is a tax-free country because the government does not collect income tax from citizens, and the unemployment rate is low.

The strongest (most actively traded) currency pairs in the world

A currency pair is a combination of values of two monetary units. One is evaluated through the prism of the other. As the name suggests, a currency pair consists of two currencies. In this case, it is necessary to pay attention to their order.

The price of the pair reflects how much of the quoted currency you will need to buy the base currency.

According to a recent study by the Traders Union, the most traded currency pairs were those that belong to the major group. However, long-term traders pay attention not only to major pairs but also to exotic ones, as well as to crosses.

The most-traded Forex currency pairs are a combination of popular and strong currencies. These include currencies of:

They are called major currency pairs, but are also known as “majors”. The Traders Union does not advise beginner traders to choose the most expensive currencies for trading. The TU believes that beginners should pay attention to the reserves, with the US dollar at the head and the so-called “safe” ones, such as the Swiss franc. The dollar is a trusted currency, just like gold. The franc, in turn, has a stable value.

Experienced profiteers may be more interested in adding exotic currencies to their investment portfolio, which analysts predict to have a chance to strengthen their value in the near future. This is in reference to the monetary units of the Arab countries.

The best brokers for investing and trading currencies

Knowing what are the most expensive currencies in the world will not automatically make you become a successful trader. Of course, profitable trading primarily depends on skills and experience, but choosing a reliable brokerage company is equally important. The Traders Union recommends choosing licensed intermediaries who have been operating for a long time and have all the necessary permissions to provide financial services. The broker’s trading platform should be comfortable to use and easy to learn, as well as provide access to a large number of financial market instruments.

Below you will find the information about three brokers whose conditions are optimal for beginners and professionals. Their key benefits are:

Oanda is the best company in the USA and Great Britain

Oanda Review

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Oanda is a brokerage company recognized as the best in the US and UK for “serious” traders. The platform provides its services to individual clients, as well as companies and corporations. However, the broker is also suitable for novice traders, because it does not impose requirements on the size of the minimum deposit and allows trading with leverage up to 1:200.

Oanda offers several account types for investors. They differ mainly in the size of the minimum commission and the terminal used. A trader who wants to create an account on the platform must first fill out a form with personal data, and select the type of trading platform, currency, account option, and leverage. It is also necessary to send a scan of an ID card and an income statement for verification.

RoboForex is the best in developing countries

RoboForex Review

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RoboForex is one of the popular brokers offering many trading platforms. The company has been operating since 2009 and is owned by RFG Holding. This is a large international investment structure, whose activities are regulated and controlled by the IFSC National Commission. In addition, RoboForex is a member of the Investment Compensation Fund. Since the beginning of its activity, the broker has been providing services at a high level, while offering innovative solutions and various tools so that every investor can find something that works for him.

The official website of RoboForex contains information materials on creating an account and working with the platform. The training section describes in detail all the nuances of making transactions and conducting various types of analysis. In case of any problems, support is available 24 hours a day, 7 days a week.

Investors shopping for the world’s strongest currencies on RoboForex can take advantage of numerous additional features. One of the most interesting is the economic calendar, which displays information about upcoming events that affect pricing.

IC Markets is the best in the Asian market

IC Markets Review

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Up to 75.93% of the broker’s non-professional clients incur losses when trading CFDs.

IC Markets is one of the biggest players in the Asian market where traders can open an account with leverage up to 1:500. Currently, it is not possible with European brokers. The company was founded in 2007 and offers services based on the ECN model and it is regulated by the Australian Securities and Investments Commission (ASIC). According to IC Markets management, clients have direct access to quotes on the interbank market, which provides high liquidity and ultra-fast order execution without delays.

Both platforms are available in mobile versions, which allows you to access the quotes of the most expensive currencies in the world almost anywhere and anytime.