Currency is a medium of exchange of goods and services that has its own value which is commiserating with the services rendered or goods purchased. The value of most currencies in the world is pegged against the United States dollar.
Only 180 currencies are recognised by the United Nations as a legal tender, but which one of them is the most valuable. The strongest currencies are defined by their comparison to the United States dollar. Read on as we explore the top 10 strongest currencies in the world 2023.
10. United States Dollar
Wrapping up our list of strongest currencies in the world is the United States dollar. The US dollar is the official currency of the United States and several other countries. It is also the most traded and used currency in the world.
The UD dollar is the world’s primary reserve currency and is held by most central banks and commercial banks globally. In fact, most currencies are traded against the United States dollar.
9. Swiss Franc – (1 KYD = $USD 1.03)
The Swiss franc or CHF is the national currency of both Switzerland and Liechtenstein and one of the strongest currencies in the world. It is also used in the Italian exclave of Campine d’Italia.
Switzerland being one of the wealthiest countries in the world has a solid track record in banking and finance. The Swiss franc is also the sixth most traded currency in the world, and it is expected to retain its value.
8. Euro – (1 KYD = $USD 1.05)
Ranking number eight on our list of strongest currencies in the world is the Euro. The Euro is the official currency of 19 countries out of the 27 member states of the European Union (EU), which makes it the most widely used official currency in the world.
Introduced in 1995, the Euro is the second-largest reserve currency as well as the second-most traded currency in the world after the United States dollar.
7. Cayman Islands Dollar – (1 KYD = $USD 1.20)
The Cayman Islands Dollar (KYD) is the currency of the Cayman Islands and the seventh strongest currency in the world. Introduced in 1972, the KYD is subdivided into 100 cents.
An autonomous British territory located in the Caribbean, the Cayman Islands are a major financial tax haven for wealthy individuals and corporations. The country provides banking licenses for a number of the world’s biggest banks, hedge funds and insurance companies.
6. Gibraltar Pound – (1 GIP = $USD 1.22)
The Gibraltar pound is one of the strongest currencies in the world. The currency which is the national currency of Gilbraltar is exchangeable with the British pound sterling at face value. It is safe to safe, one British pound is equivalent to one Gibraltar pound.
5. Pound Sterling – (1 GBP = $USD 1.22)
Ranking number five on the list of strongest currencies in the world is the Pound Sterling which is the official currency of Great Britain. The Pound Sterling is also the oldest currency still in use in the world today. Sterling is the fourth most-traded currency in the foreign exchange market.
4. Jordan Dinar – (1 JOD = $USD 1.41)
Introduced in 1950, the Jordan Dinar is one of the strongest currencies in the world. The dinar is divided into 10 dirhams, 100 qirsh (also called piastres) or 1000 fulus and is currently pegged to the US dollar. The currency is used exclusively in Jordan.
3. Omani Rial – (1 OMR = $USD 2.60)
Third on the list of strongest currencies in the world is Omani Rai, which is the official currency of Oman. Introduced in 1972 to replace the Saidi rial, the Omani Rial is divided into 1000 smaller units called baisa. The value of the currency rose due to the success of Oman’s oil export and being pegged against the US dollar.
2. Bahraini Dinar – (1 BHD = $USD 2.65)
Currently exchanging 1 BHD to $USD 2.65, the Bahrain dinar is the second strongest currency in the world. Introduced in 1965, the Bahraini dinar is usually represented with three decimal places denoting the fils. The currency is exclusive to Bahrain.
Bahrain is a small island country located in Western Asia. The country’s wealth is mainly through the export of petroleum products.
1. Kuwaiti Dinar – (1 KWD = $USD 3.26)
The Kuwaiti dinar is the official currency of Kuwait and the strongest currency in the world. Introduced in 1961, the currency, was initially equivalent to the British pound sterling. 1 KWD exchanges for $USD 3.32 ahead of every other currency.
Kuwait is a small country in Western Asia, located between Iraq and Saudi Arabia. The country also shares maritime borders with Iran. Kuwait’s wealth is driven largely by its large global exports of oil.