FBS review: World’s Highest Currencies

There are 159 different currencies in the world. However, have you thought about what the highest currency in the world is? Is it the US dollar, the dominant reserve currency? Are the euro and the British pound at the top of the list? No, they are not. The world’s most famous, most traded, and widely spread currencies are USD, EUR, and GBP. Still, some other currencies are stronger than those three. To define the highest currencies in the world, FBS analytics have compared them to the US dollar.  

The world’s strongest currenciesHere is a recap of the highest currencies in the world:

*All data is current as of November 16, 2022.

Why do some of the currencies cost that much? Several factors influence currencies' strength, including nominal Gross Domestic Product (GDP), the balance of payments, and the inflation rate. In addition, some countries possess valuable natural resources and thus gain an economic advantage. Let us examine the world’s highest currencies in detail.  

Kuwaiti DinarCountry of issuance: Kuwait

Currency code: KWD

Exchange rate: 1 KWD = 3.24 USD

The Kuwaiti dinar is the official currency of Kuwait and the most valuable currency in the world.

Kuwait is a small country situated between Saudi Arabia and Iraq. Owning large oil reserves and significant oil exports to the global market, Kuwait is one of the wealthiest counties on earth. Besides, Kuwait is a tax-free country with a very low unemployment rate.

Before, the Kuwaiti dinar was pegged to the US dollar. In 2007, the government decided to peg the Kuwaiti Dinar to the weighted currency basket.

An interesting fact:

There is a currency that could have been considered more valuable than the Kuwaiti dinar if it was officially recognized. It is the Seborgan luigino (SPL). It is used in the micronation Principality of Seborga, on the border of Italy and France. The Seborgan luigino is recognized by the regional banks but has no value outside of Seborga. So, the local rate of 1 SPL is 6 USD.

Bahraini DinarCountry of issuance: Bahrain

Currency code: BHD

Exchange rate: 1 BHD = 2.65 USD

The Bahraini dinar is the official currency of Bahrain, another country known for its oil exports more than its size.

The Kingdom of Bahrain is an island country in the Persian Gulf. The country’s wealth comes from the oil and gas industry, which supports more than 85% of the kingdom’s revenues.

The Bahraini dinar was introduced in 1965 to replace the Gulf Rupee. Now, it is pegged to the US dollar in order to encourage foreign investments.

Omani RialCountry of issuance: Oman

Currency code: OMR

Exchange rate: 1 OMR = 2.59 USD

The Omani rial was first introduced in 1970 as the official currency of Oman and has been pegged to the US dollar since then.  

Located in the Arabian Peninsula, the Sultanate of Oman has a strong economy due to the oil exports to various countries all over the world. However, the country’s revenue also benefits from tourism and agriculture.

Pound SterlingCountry of issuance: United Kingdom

Currency code: GBP

Exchange rate: 1 GBP = 1.18 USD

The pound sterling is the official currency of the United Kingdom, the UK Crown Dependencies and the British Overseas Territories. It is not just the oldest currency but among the most influential ones in global trade and finance. 

The pound depreciated versus the US dollar by about 12% year-to-date because of Britain’s political and economic uncertainty. Nevertheless, it is still the highest currency not based in the Middle East. Moreover, GBPUSD has managed to gain almost 15% from its September bottom. 

Swiss FrancCountry of issuance: Switzerland

Currency code: CHF

Exchange rate: 1 CHF = 1.06 USD

The Swiss franc is the official currency of Switzerland and Liechtenstein, the wealthiest countries in the world. 

The year 2022 wasn’t perfect for the CHF as it was depreciating versus the USD for most of it. However, even though USDCHF tested levels above parity in October, it decreased sharply afterward. So far, the Swiss currency has gained 5% versus the US dollar in November. 

Notice that the Swiss franc is known as a ‘haven’ currency because of the countries’ stable economy, the strictest monetary policy, and the lowest debt levels. Forex traders may be interested in trading the franc versus other currencies besides the USD. Pairs CHFJPY, EURCHF, and GBPCHF are worth considering for swing and position trading.

EuroCountry of issuance: Eurozone

Currency code: EUR

Exchange rate: 1 EUR = 1.04 USD

The euro is the official currency of 19 European countries. Despite its young age, the euro is the 2nd most used currency globally, both in reserve and circulation.

The European currency is not pegged to any other currency, but there are about 25 countries that have pegged their national currencies to the euro.

EURUSD is the most popular currency pair on Forex. There’s no surprise in that: after all, USD and EUR are the two most-traded currencies globally and also the first and second-largest reserve currencies. In the second half of 2022, EURUSD has been trading around the parity level. In other words, the two currencies were almost equal in value. 

US DollarCountry of issuance: United States of America

Currency code: USD

Exchange rate: 1 USD

The US dollar is the official currency of the United States of America and its territories. The US dollar was first introduced in 1972 and has become the world’s most used and traded currency. The US dollar has a title of a ‘World Reserve Currency.’

This year, the US dollar index has risen up to 15%. The US Federal Reserve is raising the interest rate in order to defeat the record level of inflation. That approach rocketed the USD up, and due to that, the other currencies dropped down. 

An interesting fact: 

Of all USD in circulation, only 30% is within the USA, which means that 70% of all USD banknotes and coins are used outside of the United States.

Canadian DollarCountry of issuance: Canada

Currency code: CAD

Exchange rate: 1 CAD = 0.75 USD

The Canadian dollar is the official currency of Canada. Since Canada is connected to the US through trade, the Canadian dollar fluctuates substantially based on the ongoing value of the US dollar.

The Canadian dollar is considered strong because Canada is the world’s second-largest supply of uranium and crude oil. Thus, the Canadian dollar depends on global oil price fluctuations.

Due to the country’s political stability, the Canadian dollar accounts for 5% of daily trades in the Forex market.

Bruneian DollarCountry of issuance: Brunei

Currency code: BDN

Exchange rate: 1 BDN = 0.73 USD

The Brunei dollar has been the currency of the Sultanate of Brunei since 1967. The BDN is pegged to the Singapore dollar at a ratio of 1:1 since Singapore is one of Brunei's main trading partners.

Brunei has a very high GDP per capita. Despite a slight drop in value, the Brunei dollar remains a relatively strong currency and is practically not subject to inflationary processes.

Singaporean DollarCountry of issuance: Singapore

Currency code: SGD

Exchange rate: 1 SGD = 0.73 USD

The Singapore dollar is the official currency of the Republic of Singapore. The monetary policy of Singapore's monetary authorities is aimed at strengthening the national currency's exchange rate.

The movement of the Singapore dollar exchange rate correlates with the level of investment activity and macroeconomic indicators in the Asia-Pacific region. In addition, the Singaporean currency is sensitive to inflation and domestic demand dynamics in the country.

An interesting fact:

The Iranian rial (IRR) is the least valuable currency in the world. Iran used to be a major oil exporter, but because of the sanctions from the USA and the European Union, Iran was deprived of access to the world’s market. Thus, the Iranian economy, along with the Iranian rial, came to decline. Nowadays, 1 IRR equals 0.000024 USD.

Final Thoughts 

The specific order in ranking the highest currencies will change as political news events, and other developments bring rapid changes in the economy of countries. Price fluctuations in currencies can be beneficial for traders. Trading with FBS allows following even minor price shifts. 

FBS provides its clients with over 30 currency pairs for trading, including those with the strongest currencies. You can find all the Forex pairs and trading conditions on the website, e.g., EURUSD contract specifications, GBPCHF contract specifications, etc.

If you are a beginner and know little about the Forex market, FBS has an education section with straightforward tips and guidelines on trading currencies online. Check it out to learn all the opportunities and risks of currency trading!