While the most used currencies in the world may be the US dollar or the British Pound Sterling, they most certainly are not the strongest. They are one of the most traded currencies in the world. The U.S. Dollar takes up over 60% of the world’s central bank reserves and 90% of all forex trade.
There are many factors that come into play while determining their strength on a global platform. From foreign exchange to inflation, there are many economic factors determining the currency’s strength.
1. Kuwaiti Dinar
As of June 2021, Kuwait’s currency the Kuwaiti dinar is the strongest circulating currency in the world, with one Kuwaiti dinar equalling 3.32 US Dollars.
As per forex, the Kuwait Dinar is not widely available for currency trading and even if it was, the stability of the currency makes trading this instrument a low-yield investment when factoring in fees and commissions.
2. Bahraini Dinar
The Bahraini dinar is currently the second strongest circulating currency as of May 2021, with one Bahraini dinar equalling 2.65 United States dollars.
3. Oman Rial
The Omani rial is the currency of Oman. Since oil is valued in USD, Omani receives a lot of revenue in US dollars and holds on to the money to maintain its high-value currency.
4. Jordanian Dinar
The Jordanian Dinar is the national currency of Jordan since 1950. It is pegged to be almost equal to a US dollar.
5. Pound Sterling
The Pound Sterling is the official currency of the United Kingdom and many other territories. As per Forex, the Pound specifically is valued higher than the U.S. Dollar because of Britain’s low inflation.
6. Cayman Islands Dollar
The Cayman Islands provide offshore banking licenses for thousands of companies, making it the sixth strongest currency in the world.
The Euro is the official currency of 19 of the 27 member states of the European Union. It is also the second-largest reserve currency in the world.
8. Swiss Franc
The Swiss franc is the official currency and legal tender of Switzerland and Liechtenstein. The stability and wealth of Switzerland make it a popular reserve currency.
9. United States Dollar
The currency of the United States, the U.S. Dollar, takes up over 60% of the world’s central bank reserves and 90% of all forex trade.
10. Canadian Dollar
The Canadian dollar is the currency of Canada and is the tenth strongest currency in the world.