The most valuable currencies in the world 2024

What are the highest currencies?

The highest currency is a national currency with a stable value against other currencies under all market conditions. A strong currency is a sign of a stable, balanced economy. According to established rules, the U.S. dollar, the world’s main reserve currency, is used as an equivalent. The ratio of national currencies to the USD indirectly shows the ratio of national economies to the U.S. economy.

A strong currency benefits importers but not exporters. Exporters sell goods for USD, which are exchanged on the local currency market. They benefit from the low price of the local currency. Importers, on the other hand, are forced to buy USD to purchase goods from foreign partners, and therefore they benefit from the high price of the local currency. The role of the Central Bank is to monitor the balance.

Top 15 most valuable currencies in the world

The world’s three strongest currencies have been in this order for many years. The rest change their positions from time to time. Sometimes other currencies also make this rating. For example, in 2011-2013, the Australian dollar was worth more than $1. At the moment, the euro is in a precarious position because its exchange rate in January 2023 fell below the USD for the first time since 2002.

1. Kuwaiti dinar (KWD)

Kuwaiti dinar/U.S. Dollar Chart

Today, the Kuwaiti dinar is the world’s strongest currency, and it has held this status for several years. In 2007, the country abandoned pegging to the USD in favor of a multi-currency basket. The secret of the high value of the dinar is the country’s large oil deposits and the low cost of their production. It is the low cost of production and export quotas set by OPEC that place the dinar among the world’s strongest currencies. With relatively equal market prices and fixed volumes, the one with lower costs is the winner. The country has almost no unemployment and no value-added tax. Because the government recognizes the risks of dependence on oil prices, it established a sovereign wealth reserve fund to maintain the exchange rate.

2. Bahraini dinar (BHD)

Bahraini dinar/U.S Dollar Chart

The situation is similar in Bahrain. As in the case of Kuwait, Bahrain has large deposits of energy resources, which are the main source of income. However, unlike Kuwait, Bahrain’s currency is pegged to the U.S. dollar. The regulator has sufficient gold and foreign exchange reserves to keep the national currency firmly within a narrow range. Interesting fact: the national currency of Saudi Arabia is the second legal tender in Bahrain.

3. Omani rial (OMR)

Omani Rial/U.S Dollar Chart

In Oman, the national currency was pegged to the U.S. dollar in 1973. The exchange rate was last adjusted in 1986, and it has remained at 2.6 USD since then. There is a slight deviation due to the dynamics of supply and demand, but the fluctuation range is so narrow that it can be ignored. The reason for stability, as in the cases of Kuwait and Bahrain, is oil exports. Falling oil prices and continued military conflicts in the Middle East are offset by gold and foreign exchange reserves. Recently, the government has been trying to diversify budget revenue items by gradually increasing the share of metallurgy, gas production, and tourism.

4. Jordanian dinar (JOD)

Jordanian Dinar/U.S Dollar Chart

The price of this currency has been pegged to the U.S. dollar since 1995 (theoretically, it is pegged to special drawing rights (SDR), but in practice, it is pegged to the U.S. dollar). The national currency was pegged to the U.S. dollar to maintain the stability of the national economy and U.S. investments. A stable pegged exchange rate ensures peace of mind for foreign investors using the dinar to invest in local businesses, as well as for various programs funded by SDR. But whether Jordan will be able to maintain strict pegging in the future is a complicated question. Since 2011, the country has been experiencing a slowdown in economic growth, and there are no large oil reserves to support the budget.

5. Cayman Islands dollar (KYD)

The national currency of the Cayman Islands is also pegged to the U.S. dollar, with a fixed rate of 1.20, though there are still minor fluctuations. The status of the country helps to maintain a fixed rate within the jurisdiction. This small island state is an offshore tax haven. The country is among the Top 5 largest offshore financial centers in the world, where banking, insurance, trust investment, and hedge funds operate.

6. Gibraltar pound (GIP)

Gibraltar Pound/U.S Dollar Chart

Gibraltar’s national currency has historically been pegged to the British pound sterling. Initially, the currencies of Spain and the United Kingdom were in use in Gibraltar. The 1934 law authorized the country to issue its own currency, pegged to the pound. The country’s economy has a narrow specialization: agriculture does not exist here, and industry is represented by ship repair plants. The main industries are finance, tourism, and services. With a small level of inflation, the standard of living in Gibraltar is above average, while the income from re-export allows for maintaining the exchange rate at a fixed level.

7. Falkland Islands pound (FKP)

This is a very particular currency and its price chart is not easy to find. Like Gibraltar, the Falkland Islands are an overseas territory of the UK. However, Spain lays a claim on Gibraltar, while Argentina lays a claim on the Falkland Islands. Despite uncertain legal status, the islands have their own national currency, which is rigidly pegged to the GBP at a ratio of 1:1. The population barely reaches 3,500 people, nevertheless, the country earns very well on the export of seafood and wool, which allows it to maintain the stability of the national currency price.

8. Pound Sterling (GBP)

Pound Sterling/U.S Dollar Chart

Before the U.S. dollar came to dominate global economic relations, the British pound was the dominant currency. The Bank of England deliberately set a higher exchange rate, but unlike previous banks with strong currencies, it refused to peg the pound to the U.S. dollar. The country is one of the world’s leading economies and one of the top business, stock exchange, and financial centers. The high price of the national currency is supported by positive macroeconomic statistics. Although Brexit and Europe’s geopolitical problems have shaken the pound’s position against the U.S. dollar, it remains more valuable.

9. Swiss franc (CHF)

Swiss franc/U.S Dollar Chart

The Swiss franc ranks first in the rating of the most reliable currencies. CHF stability is ensured by a perfectly structured monetary policy, a managed banking system, a low level of public debt, and partial isolation from the EU. The CHF price rose against the background of the debt crisis in the United States. In 2015, the Central Bank unpegged the Swiss franc from the euro, and now the currency is seen as a safe haven asset in the event of problems with the economies of the United States and the Eurozone.

10. Euro (EUR)

Euro/U.S Dollar Chart

The euro is the world’s second reserve currency after the U.S. dollar, with approximately 25 countries pegged to it. It also ranks second after the USD in terms of trade turnover. The stability of the currency price is ensured by the European Central Bank’s monetary policy, which has delegated some financial management powers to local Central Banks. However, history shows that the Eurozone has its weaknesses that could cause EUR/USD price to eventually drop below 1.0000. In particular, there are problems with the stability of the banking systems of Italy and Spain, migration problems, problems of high reliance on the supply of energy resources, etc.

11. U.S. dollar (USD)

The U.S. dollar is the world’s most popular and freely convertible currency, serving as the financial equivalent. The dominance of the U.S. dollar is related to the country’s policy in the pre-war years and during the Second World War. In the early 1900s, the U.S. economy was in a deplorable state, and the British pound played the leading role in international payments. In the 1930s-1940s, the U.S. managed to accumulate gold reserves (part of the evacuated gold reserves of Norway, Poland, Belgium, and the Netherlands). The war that engulfed Europe deprived it of its economic advantage in the international arena, and the United States assumed this role. Many countries began to use the gold-backed U.S. dollar for gold and foreign exchange reserves. Although the U.S. dollar is no longer pegged to gold, it is still used as the equivalent of gold and foreign exchange reserves.

12. Panamanian balboa (PAB)

Since 1934, the Panamanian currency has been rigidly pegged to the U.S. dollar at a ratio of 1:1. Any Central Bank can peg its currency to a fixed value of another currency. However, simply pegging is not enough; the exchange rate must also be supported. To that end, effective monetary policy tools, gold reserves, and a stable balance of payments are needed. Panama has all of the above.

13. Bahamian dollar (BSD)

Bahamian dollar/U.S Dollar Chart

The Bahamian national currency is pegged to the U.S. dollar at a ratio of 1:1. The Bahamian dollar can serve as a reserve investment asset in a critical situation.

14. Canadian dollar (CAD)

Canadian Dollar/U.S Dollar Chart

The Canadian dollar ranks 6th in the world in terms of trade turnover. The country has a developed economy due to the volume of natural resources. Also, Canada has extensive oil fields, including shale, as well as uranium deposits (2nd place in the world in uranium reserves). The CAD price is strongly influenced by the USD price against other currencies since the U.S. is Canada’s key trade partner.

15. Singapore dollar (SGD)

Singapore Dollar/U.S Dollar Chart

Singapore has one of the strongest economies in the Pacific region. With a relatively small domestic market, the country has built strong foreign economic relations. Trading partners are Japan, Hong Kong, China, and other countries in the Asian region. Singapore is also an international financial center. The monetary policy of the Central Bank is relatively flexible but regulated. The Central Bank determines the volatility corridor, which leaves opportunities for earnings on intraday and medium-term strategies.

The Australian and New Zealand dollars (AUD and NZD) were not included in the list. At the time of the rating, their prices were below USD 0.7. This does not mean that these currencies are weak or that their economies are experiencing difficulties. This is rather a temporary event caused by local fundamental factors. For example, the AUD price has crossed the 0.8 USD mark multiple times.

Why is it important to know the strongest currencies in the world

The weak exchange rate of the national currency against the USD does not mean that the asset is not suitable for trading. Maybe, that is the policy of the Central Bank. If the economy shows no signs of hyperinflation, significant disproportion in the balance of payments, or moderate volatility, the currency can be considered an investment asset.

What impacts the value of currencies

Also, the influence of particular news needs to be considered. For example, in case macroeconomic statistics of both countries (in a currency pair) are released at the same time, it is necessary to determine which news will cause greater volatility of the price.

Which currencies are the weakest in the world

The list of the weakest currencies includes countries with weak economies that have structural problems, such as high inflation, unemployment, lack of production, import orientation, internal military conflicts, international sanctions, etc. In recent years, the list of the world’s Top 10 weakest currencies has remained mostly the same, with only the position in the ranking changing.

It would be fair to add the Venezuelan bolivar to this list. In 2019, inflation was around 9600%, and in 2020, it was nearly 3000%. At that time, Venezuela led the ranking of the weakest currencies in the world. However, in 2021, the third printing in the previous 13 years was held, removing six zeros from the bolivar. Formally, the bolivar lost its place in the rating for this reason, but this did not change the fact that the country’s economy has been in a severe crisis for a long time, despite large oil reserves and high oil prices.