I’m sure you must have pondered enough to know which is the top currency in the world? Most likely the first thought which might reap up in your mind is that it could be British Pound, US Dollar, or Euro. There are 180 currencies across the world that are used as legal tender permitting by The United Nations but do you know which one the definition of strong currency here is the one that is the most classy when compared to the global standby currency – the US dollar.
Before the global outbreak of the Coronavirus pandemic that shook major economies across the world plunged stocks, bonds, commodities, etc, to record lows in 2020. There is a slight reduction in the value of currency however it was predictable to see the top 20 strongest currencies in 2022.
Kuwaiti Dinar is the world’s strongest currency in stock that takes the number one position. Kuwaiti Dinar’s highest currency in the world was first launched in the year 1960 when it extended independence from the British Empire and it was comparable to one pound at that time. Kuwait is a relatively very small country that is geographically placed between Iraq and Saudi Arabia. KWD conversion rate is $3.286 which infers if you altercation one USD you will receive only 0.30 Kuwaiti dinar 1 USD.
- The Kuwaiti dinar (KWD) is the currency of the State of Kuwait, and as of 2022 is the most treasured currency on Earth.
- The economy of Kuwait is heavily reliant on oil, making it one of the richest nations in the world.
- Since its official release in 1961, the KWD has gone through six different versions.
- Bahraini Dinar: BHD
Bahraini Dinar (BHD) takes the second spot in the list of the most prized currencies in the world. The BHD exchange rate is $2.659 per one Dinar which infers you will get 0.37 BHD if your currency is exchanged for one dollar.
BHD stopped using the gulf rupee as legal tender and presented Bahraini Dinar in 1965. BHD is pegged to the US Dollar and since 1987 the exchange rate against the movement of increasing numbers of expatriates to Bahrain has resulted in a huge boom in the real estate sector.
- The Bahraini dinar (BHD) is the official currency of Bahrain, an island nation in the Persian Gulf next to Saudi Arabia.
- The BHD banknotes have denominations of 0.5, 1, 5, 10, and 20 dinar and coins valued at 1, 5, 10, 25, 50, and 100 fills, which are managed by the Central Bank of Bahrain.
- The Bahraini dinar (BHD) is the second-highest valued currency in the world after the Kuwaiti dinar (KWD).
- Bahrain’s economy relies heavily on oil and gas with refined petroleum being its largest export.
Omani Rial: OMR
The Omani Rial is the third most exclusive currency in the world. OMR transformation rate for one Rial is equal to 2.60 USD. Omani Rial was publicized in 1970 as Saidi Rial named after the sultanate of Oman, The House of Al Said. Since 1973 OMR is pegged to the US Dollar Oman has achieved important business growth since the early 1990s based on the upgrade in oil prices in 1999. It joined in 2000; Oman increased its markets in order to gain company in the World Trade Organization. Today, Oman’s economics is based on its oil business. Oil was discovered in 1964 by Fahd in the Latin dessert, and oil fabrication started in August 1967.
- The Omani rial uses the currency code OMR and is the currency of the Sultanate of Oman.
- The OMR is pegged to the U.S. dollar exchange rate of 1 rial to US$2.6008.
- Oman is heavily dependent on oil exports and is attempting to diversify its economy.
Jordanian Dinar: JOD
The Jordanian Dinar which has been the currency of Jordan since 1950 is ranked fourth in our list of the strongest currencies with a conversion rate of 1 JOD = 1.41 USD.
It was pegged to the US Dollar initially at a higher rate but for the last 2, there is a gradual slowdown in the economic growth of Jordan since 2011 due to a substantial rise in population, external debt, and unemployment. For decades, the country has managed successfully to maintain this peg.
- The dinar is pegged to the U.S. dollar at a rate of 0.7090 per one dollar and has been so since 1995.
- By pegging the dinar to the dollar, Jordan gets the benefit of a stable currency regime, meaning its local banks are likely to attract deposits.
- Issued dinars have the official name of the country, the Hashemite Kingdom of Jordan, printed on them.
- The current series of banknotes have denominations of 1, 5, 10, 20, and 50 dinars.
British Pound: GBP
British Pound Sterling ranks in the fifth position among the world’s strongest other currencies holding a foreign-exchange rate of 1 GBP = 1.322 USD. Many people have a perception that British Pound holds the highest monetary value but it is not GBP is the oldest currency in circulation as British Empire before World War I was spread across the length and breadth of the globe.
The British pound occupies an important place in economic history, having already been the world’s dominant currency at one time and now occupying the position previously held by the US dollar in terms of importance in both international trade and accounting
Cayman Islands Dollar: KYD
The Cayman Islands Dollar is the only Caribbean currency in the sixth position which features in our list of strong currencies. The KYD is the national currency of the Cayman Islands. Introduced in 1972, the KYD remains one of the top currencies in the world. The primary reason for this is because of the fact that it is an autonomous British territory and considered to be one of the world’s best tax havens for corporates and Individuals.
- KYD is the currency abbreviation or currency symbol for the Cayman Islands dollar (KYD), the currency for the Cayman Islands.
- The currency relies on a fixed exchange rate pegged to the U.S. dollar at KYD $1 = USD $1.20
- KYD has two recognized symbols that are used locally: $ and CI$.
European Euro: EUR
The Euro ranks seventh in our list of the strongest currencies with a conversion rate of 1.093 against one dollar. EURO is the official currency for 19 European countries. EURO is the second reserve currency after the USD commanding a market share of 25% of all world savings. Approximately 25 countries have pegged their currencies to Euro at a fixed rate.
- The euro was created on Jan. 1, 1999, and it was designed to support economic integration in Europe.2
- The advantages of the euro include promoting trade, encouraging investment, and mutual support.
- On the downside, the euro was blamed for overly rigid monetary policy and accused of a possible bias in favor of Germany.
Swiss Franc: CHF
The Swiss Franc ranks eighth in our top currencies list with a conversion rate of 1.091 against one dollar. CHF is one of the most stable currencies worldwide and is the least affected by inflation. The Swiss franc refers to the national currency of Switzerland and is represented by ISO code CHF. The country’s zero-inflation policy, combined with its political independence, makes CHF an extremely powerful and stable currency.
- CHF is the abbreviation for the Swiss franc, which is the official currency of Switzerland.
- CHF is the only franc that is still issued in Europe after the other nations, that used to denominate their currencies in francs, adopted the euro.
- CHF’s popularity stems from its status as a perennial safe-haven currency.
- In the 20th century, the Swiss National Bank was required to keep 40% of its reserves in gold, but this requirement was eliminated in 2000.
- CHF was briefly pegged to the euro between 2011 and 2015.
US Dollar has been the “World Reserve Currency” since 1944 after the Breton woods agreement. US Dollar is the most traded currency in the forex market. USD is always in high demand as it is accepted all over the world. USD is involved in more than 85% of daily forex trades. The USA with a GDP of more than 22 Trillion is the economic engine of the world.
- The U.S. dollar has been a bedrock of the global economy and a reserve currency for international trade and finance.3
- Like any other fiat currency, the dollar’s relative value depends on the economic activity and outlook of the United States.
- In addition to fundamentals and technical factors, market psychology and geopolitical risk also influence the dollar’s value on the world market.
- Bahamian Dollar: BSD
BSD happened to be the official currency of The Bahamas from the year 1966. BSD is pegged to USD at par. Many of the businesses which cater to the tourism industry keep some extra US dollars with them for the converter of American tourists. When it replaced the British pound (GBP) at a rate of 7 shillings per BSD. The GBP was previously used in the Bahamas because the nation had been a British colony between 1718 and 1973.
- The Bahamian dollar (BSD) is the national currency of the Bahamas.
- It is pegged to the USD at a rate of 1 USD per BSD.
- The economy of the Bahamas is based largely on tourism, financial services, and specialty exports such as oceangoing vehicles.
- Bermudian Dollar: BMD
BMD is the official currency of the British Overseas Territory of Bermuda. BMD is pegged to USD at a one-to-one ratio. The highest note in circulation is 100 BMD. Trading of the Bermudian dollar outside Bermuda is not allowed. One can find both USD and BMD notes in Bermuda.
The Bermudian Dollar is an official national currency and is used only in Bermuda’s 1 Dollar to 100 Cent. The Bermudian Dollar is tied to the US Dollar exchange with a fixed rate. Therefore, 1 Dollar always equals 1.0000 US dollars.
- Panamanian Balboa: PAB
The Panamanian Balboa is the official currency of Panama along with the USD. PAB is also pegged to USD at par. The name Balboa is in honor of the Spanish explorer Vasco Núñez de Balboa. Balboas are only minted as coins, with rare “seven-day” banknotes issued in 1941 collector’s items fetching up to thousands of dollars each. The PAB is pegged at 1:1 to the U.S. dollar, and U.S. money circulates widely in the country.
When Panama gained independence in 1906 it replaced the Colombian Peso with The Balboa. An interesting fact about Panama is that country has never had an official central bank.
- Canadian Dollar: CAD
The Canadian Dollar is the official reserve currency of Canada with a foreign-exchange rate of 0.785 against USD. CAD is the fifth-largest reserve cur Canada has vast reserves of crude oil just behind Saudi Arabia and Venezuela and it has the second-largest uranium supply in the world.
The Canadian dollar, also known as the loonies, for the loon on the $1 coin, is the currency of Canada. Its international currency code is CAD and its symbol $, or C$, distinguishes it from other dollar currencies. Like money, it is the measure of value in which all prices in Canada are expressed and the medium of exchange for goods and services. It is divided into 100 cents (¢) and available in material form as coins circulated by the Royal Canadian Mint and banknotes circulated by the Bank of Canada.
- Australian Dollar: AUD
The Australian Dollar is the official legal tender not only in Australia but also in some pacific island states. With a conversion rate of 0.736 against USD, it is considered one of the stable currencies. AUD ranks fifth in the most traded currency in the forex market which accounts for 6.8% of daily traded volume.
- The Australian Dollar refers to Australia’s official currency and is abbreviated as AUD.
- The Reserve Bank of Australia (RBA), Australia’s central bank, manages AUD and determines the country’s monetary policy and issues and regulates the money supply.
- Australia is one of the biggest exporters of iron ore and coal in the world; hence, the value of AUD depends heavily on commodity prices.
- Singapore Dollar: SGD
The Singapore Dollar is one of the strongest currencies in the APAC region with a conversion rate of 0.735 against the USD. The Govt of Singapore had issued S$10,000 banknote which was the most valuable in the world in circulation. However, in 2014 they decided to stop printing and initiated the withdrawal process.
Since the financial crisis of 2007–2008, the SGD has become one of the world’s best-performing currencies. With a robust and growing financial center, stable housing prices, and undemanding regulatory practices, Singapore has become a favored destination for offshore investors and entrepreneurs.
- Brunei Dollar: BND
Brunei Dollar currency exchange rate is the same as SGD as there is a currency agreement between Singapore and Brunei. SGD and BND are interchangeable at par and can these two currencies can be used in Singapore and Brunei. Sultan of Brunei is considered to be the richest monarch in the world whose net worth is estimated to be $28 Billion.
- New Zealand Dollar: NZD
New Zealand Dollar is the official currency for not only New Zealand but also the Cook Islands, Niue, Tokelau, and the Pitcairn Islands. In forex parlance, it is informally referred to as “Kiwi” or “Kiwi dollar”.
- The New Zealand currency is known as the New Zealand dollar (NZD).
- New Zealand used to use the British monetary format, which was pounds, shilling, and pence, until 1967, when it switched to dollar-based money.
- The New Zealand dollar went through a series of changes in a fixed exchange rate with the U.S. dollar until March of 1985 when the currency exchange was allowed to float freely.
- Since 1999, the New Zealand government has produced polymer or plastic versions of the New Zealand dollar, which has made the note more secure against counterfeiting.
- Bulgarian Lev: BGN
Bulgarian Lev is the official currency of Bulgaria with a conversion rate of 0.559 against USD. Initially, in the year 1997, BGN entered into a currency board arrangement with Deutsche Mark at a fixed rate. After the introduction of the euro currency, it was pegged to EUR at a fixed rate of BGN 1.95583: EUR 1.
- The Bulgarian Lev is the national currency of Bulgaria.
- The currency code for the Bulgarian lev is BGN, and the symbol is лв.
- The Bulgarian lev is pegged to the euro at a rate of EUR/BGN 1.95583.
- Bulgaria is an EU member since 2007 and is expected to eventually adopt the euro as its currency, although no date is officially set.
- Fijian Dollar: FJD
The Fijian Dollar has been the currency of Fiji with a conversion rate of 0.474 against the USD. It was introduced in the year 1969 by replacing the Fijian pound at a rate of 1 pound = 2 dollars version rate of NZD is 0.686 against one dollar.
- The Fijian Dollar (FJD) is the national currency of Fiji.
- Its modern version has been in circulation since 1969, one year before Fiji’s independence from Britain.
- Today, Fiji’s economy is heavily reliant on tourism, as well as specialty exports such as bottled water.
- Brazil Real: BRL
The Brazilian Real is the official tender in Brazil with a conversion rate of 0.197 against one dollar. BRL was introduced in the year 1994.BRL ranks last at 20th position in our list of the world’s strongest currencies. Brazil is one of the leading exporters of base materials worldwide.
- The Brazilian real, abbreviated BRL is the national currency of Brazil.
- BRL is made up of 100 centavos and is often presented with the symbol R$.
- The Brazilian real was first adopted as the official currency in July 1994, replacing the crozier real at a rate of 1 real to 2,750 croziers real.
- BRL was anchored to the U.S. dollar from 1994 to 1999 for the sake of stability.
Well, we have tried to provide the most information on the 20 strongest currencies in the world in 2022. Hope you enjoyed reading the article.