The strongest currency in the world 2022
Have you ever wondered about the strongest currency in the world? If your answer is the US dollar, the euro or the British pound, you have to guess again. The most expensive currency in the world is neither the dollar nor the euro, but there are other currencies, including Arab currencies, which are considered the most expensive in the world.
Here are the 10 most expensive currencies in the world in 2022. You may be surprised to find that the US dollar is at the bottom of the list of the most powerful currency in the world in terms of currency value. But the ranking changes when comparing currencies in terms of trading strength around the world and in terms of its position as a global reserve currency.
10 strongest currencies in the world
1- Kuwaiti dinar
Currency symbol: KWD
Kuwaiti dinar rates:
• 1 Kuwaiti dinar = 3.32 US dollars
• 1 Kuwaiti Dinar = 2.81 Euro
The Kuwaiti dinar is considered the most expensive currency in the world, estimated at $3.32 per dinar. The reasons for this value are due to the stable economy in addition to the fact that it contains 9% of the world's oil reserves, which produces approximately 95% of the country's revenue.
What sets Kuwait apart is that it is tax free with a very low unemployment rate which makes it the 8th in the list of countries with the highest GDP per capita.
The Kuwaiti dinar was first introduced in 1960 after the country gained independence from the United Kingdom and was initially equivalent to one pound sterling. It was then linked to the US dollar from 2003 to 2007, when the government decided to link the Kuwaiti dinar to a basket
2- Bahraini dinar
Currency symbol: BHD
Bahraini dinar rates:
• 1 Bahraini dinar = 2.66 US dollars
• 1 Bahraini Dinar = 2.25 Euro
The exchange rate of the Bahraini dinar has been stable against the dollar since 1987, with a conversion rate of $2.66 per dinar, which contributed to making it the second strongest currency in the world in terms of the exchange rate.
Bahrain is an island country in the Persian Gulf with a population of just over a million people. As with Kuwait, its largest source of income is the export of world oil and gas.
Before Bahrain became one of the leading oil producing countries, its main industry was pearl mining. This industry continued to reap profits until production stopped due to the cultivation of pearls in Japan in 1930.
3- Omani Rial
Currency symbol: OMR
Omani Rial rates:
• 1 Omani Rial = 2.60 US Dollars
• 1 Omani Rial = 2.20 Euro
The Omani riyal has been pegged to the US dollar since 1973, and is the third most expensive currency in the world with a conversion rate of $2.60 to one riyal, nearly twice the value of the pound sterling.
This currency is characterized by such high purchasing power that the government was forced to issue banknotes in denominations of 1/4 and 1/2 riyal. As with other countries in the Arabian Peninsula, Oman enjoys a developed economy and a high quality of life thanks to oil production. However, due to the expiration of the reserves, the Omani government decided to diversify its sources of income by developing gas production, mining and tourism.[1]
4- Jordanian dinar
Currency symbol: JOD
Jordanian dinar rates:
• 1 Jordanian dinar = 1.41 US dollars
• 1 Jordanian Dinar = 1.20 Euro
The Jordanian dinar was initially pegged to the US dollar and the country has been able to maintain this peg for the past twenty years.
Although the Jordanian dinar occupies the fourth place in the list of the most expensive currency in the world, it is difficult to justify this rank, as the country is not economically developed, and it lacks basic resources such as oil, in addition to large foreign debts.
5- The pound sterling
Currency symbol: GBP
British Pound Sterling rates:
• 1 British pound = 1.38 US dollars
• 1 GBP = 1.17 EUR
Most people think that the pound sterling has a high monetary value among other currencies. But the fact that its price against the US dollar places it only in fifth place.
The pound sterling is the national currency of England, Scotland, Wales and Northern Ireland, and is one of the oldest and one of the most traded currencies in the world.
British colonies such as the Falkland Islands, Gibraltar, Saint Helena, etc. use their own banknotes of the same value but visually different from Bank of England banknotes.
6- Cayman Islands dollar
Currency symbol: KYD
• Cayman Islands dollar rates:
• 1 Cayman Islands dollar = 1.22 dollars
• 1 Cayman Islands dollar = 1.03 Euro
The Cayman Islands dollar is the only Caribbean currency in the list of the strongest currency in the world, and this is due to the fact that this British autonomous territory is one of the best tax havens in the world and one of the five largest offshore financial centers.
7- European Euro
Currency symbol: EUR
Euro Euro rate: 1 Euro = 1.18 US Dollars
The strengthening of the euro continued over the years, which allowed it to maintain a strong position in the list of the strongest currency in the world.
The real value of this currency explains that it is the official currency of 19 economically advanced European countries, and the euro is the second reserve currency that encapsulates 25% of all global savings.
The euro is one of the most widely used currencies in the world. About 25 countries have pegged their currencies to the euro at a fixed rate, and it is the most traded currency in the forex market after the US dollar.
8- Swiss franc
Currency symbol: CHF
Swiss Franc rates:
• 1 Swiss franc = 1.10 US dollars
• 1 Swiss Franc = 0.93 Euro
The Swiss Franc is considered the strongest currency in the world and the most stable worldwide. It is the sixth most traded currency and the only one that is not affected by inflation.
Switzerland is one of the most stable and richest countries in the world. This is due to its strict monetary policy and low debt levels, making the franc a safe bet for investors while trading or hoarding the currency.
9- US dollar
Currency symbol: USD
US dollar rate: 1 US dollar = 0.85 Euro
The US dollar is the most traded currency in the forex market and has earned the nickname of the primary “world reserve currency” thanks to the economic leadership of the United States. This makes it the most powerful business in the world in terms of trading.
There were around $2.10 trillion USD in circulation as of December 2020. Interestingly, notes were issued with face values of $1,000, $5,000, $10,000 and even $100,000 at times.
10- Canadian dollar
Currency symbol: CAD
Canadian dollar rates:
• 1 Canadian dollar = 0.79 US dollars
• 1 Canadian dollar = 0.67 Euro
The Canadian dollar is the tenth strongest currency in the world in terms of currency value, but it is the sixth largest reserve currency and the sixth most traded, accounting for about 5% of daily forex trades.
Canada has the world's second largest supply of uranium as well as large reserves of crude oil (13.21%), second only to Saudi Arabia and Venezuela.
The Canadian dollar is also associated with the rise and fall of the US dollar, as the main importer of Canadian oil is the United States.
The strongest currency in the world is not necessarily the most expensive
Is the most expensive currency in the world a sign of the strongest economy in the world? It is obvious that the currencies of unsuccessful countries tend to depreciate, but in fact, the high value of the currency only indicates that the inflation processes in the country are under control. Japan for example ranks third among the countries with the highest GDP, yet one Japanese yen is worth about $0.009.
What is the most valuable currency in the world? The Kuwaiti dinar is the most valuable currency in the world with an exchange rate of $3.32. This rank is due to the stability of Kuwait's economy and its oil wealth, in addition to that it is widely used in the oil trade, especially in the Middle East.
There is a currency that is more valuable than the Kuwaiti dinar, called the Ciborgan Luigino. This coin was issued in the Principality of Seborga which is on the border between Italy and France and has a value of 6 US dollars. But until it is universally recognized, the Kuwaiti dinar will remain the strongest currency in the world.
Why is the Kuwaiti dinar expensive? Kuwait has large oil reserves on its territory and makes huge profits from petroleum exports to the world market. This rise in the demand for oil today pushes many countries to use the Kuwaiti dinar in oil-based transactions, which affects the currency exchange rate and gives it a high monetary value.
Is the British pound the strongest currency in the world? It is often thought that the British pound is the strongest currency in the world, but this is not at all true. The British pound can be considered one of the strongest currencies in the world due to historical conditions, low inflation, demand for UK exports, and high purchasing power, but it is not the strongest.
Is the euro stronger than the US dollar? The euro has become more valuable than the US dollar with the exchange rate of 1 euro equal to 1.18 dollars. But this does not mean that the euro is stronger than the dollar or vice versa. The strength of a currency is not determined by its value, rather it is determined by many other factors such as inflation rate, interest rates, country debt levels, etc.
Should you invest in the strongest currencies in the world? A higher monetary value does not mean that the economy is strong, that is, you should not rely solely on this indicator to make any investment decisions. If you are interested in investing in forex, you should consider the stability of the currency more than its strength.
Weighted currencies.
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