A currency’s strength is determined by supply and demand just like everything else in the market, if the demand for a currency is high, then the value (strength) of that currency will rise with the demand.
When it comes to strongest currency discussions, most people believe that the British Pound is the strongest currency. But actually, it is not. There are at least a few currencies that are more valuable.
#1 – Kuwaiti Dinar ($3.29)
Kuwaiti Dinar rates:
1 KWD = 3.29 USD (Kuwaiti dinar to US dollar)
1 KWD = 2.97 EUR (Kuwaiti dinar to euro)
The strongest currency in the world currently is Kuwaiti Dinar as against the US Dollar. Kuwait is a small country with enormous wealth. The high value (rate) of its currency is explained by significant oil exports into the global market.
Due to the stable petroleum-based economy, highly developed oil production and export, Kuwait is considered to be one of the richest countries in the world.
More than 80% of the country’s revenue comes from the oil industry, as petroleum production here is the easiest and, therefore, the cheapest among other countries. Besides the very stable economy, Kuwait is a tax-free country with a very low unemployment rate.
#2 – Bahrain Dinar ($2.66)
Bahrain Dinar rates:
1 BHD = 2.66 USD (Bahrain Dinar to US Dollar).
1 BHD = 2.40 EUR (Bahrain Dinar to Euro).
The Bahrain Dinar is the second most valuable currency.
Bahrain is a Persian Gulf island state with a population of just over 1 million people. As in the first case, this country’s largest source of income is the “black gold” exports.
The Bahrain Dinar is pegged to the US Dollar exchange rate, and its rate against the US Dollar has remained stable since 2005.
#3 – Oman Rial ($2.60)
Oman Rial rates:
1 OMR = 2.60 USD (Oman Rial to US Dollar).
1 OMR = 2.34 EUR (Oman Rial to Euro).
Oman is a country on the Arabian Peninsula. The Oman Rial is also pegged to US Dollar as Bahrain Dinar.
Remarkably, the purchasing power of this currency is so high that the government had to issue 1/4 and 1/2 Rial banknotes.
#4 – Jordan Dinar ($1.41)
Jordan Dinar rates:
1 JOD = 1.41 USD (Jordan Dinar to US Dollar).
1 JOD = 1.27 EUR (Jordan Dinar to Euro).
Jordan, an Arab nation on the east bank of the Jordan River, is defined by ancient monuments, nature reserves and seaside resorts.
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The Jordan Dinar competition with the US dollar is a misery It is hard to explain the high value of Jordan Dinar. Jordan is generally not economically developed, and it lacks essential resources, such as oil however its Jordan Dinar is still stronger than the US dollar.
Some economists believe that despite the fact that Jordan’s economy is low, the currency is strong at the dollar because of where it’s found.
#5 – British Pound Sterling ($1.32)
British Pound Sterling rates:
1 GBP = 1.32 USD (British Pound Sterling to US Dollar).
1 GBP = 1.19 EUR (British Pound Sterling to Euro).
Most people consider that British Pound is the strongest world currency, but it only closes the top five of this list.
British Colonies issue their own banknotes, which visually differ from banknotes issued by the Bank of England, but they are valued as 1 per 1.
