by Susan Paige
The US dollar is considered the global currency, so it must be the strongest currency, right?
Wrong!
Despite its position as a world currency, the US dollar is tenth in the contest to be the most valuable currency.
So what are the strongest currencies in the world? Let’s take a look at the top 7 strongest currencies.
What Is Currency Strength?
Currency strength simply refers to the value of a currency.
If you trade in the forex market or are thinking about starting, understanding the strength of various world currencies is essential. One useful tool is this currency strength indicator, which will help you make the best trading decisions.
1. Kuwaiti Dinar
This small, incredibly wealthy country has the most valuable currency because of its exportation of oil into the global market. The oil industry is responsible for more than 80% of Kuwait’s revenue.
2. Bahraini Dinar
This island nation in the Persian Gulf has the title of the second most expensive currency.
Another small, oil rich nation, the nation’s currency switched from the Gulf rupee to the Bahraini dinar in 1965.
3. Oman Rial
Situated on the Arabian Peninsula at the mouth of the Persian Gulf, the location of Oman is considered very strategically important.
Ranking 25th in the list of sizable oil reserves and as the 69th most peaceful country in the world, the people of Oman enjoy a high quality of life.
4. Jordanian Dinar
Replacing the Palestinian pound in 1949, the Jordanian Dinar has spent the last 20 years pegged to the US dollar.
Therefore, while the other Middle Eastern countries in our list have strong currency because of a large scale of exports or a strong national economy, this is not the case for the Jordanian dinar. It’s rather because of it’s pegging to the US dollar.
5. British Pound Sterling
The official currency of the United Kingdom, many people mistakenly believe that the Pound Sterling is the strongest currency in the world.
This currency is one of the oldest independent currencies in the world and one of the most widely used currencies. The British Pound was first used all the way back in 1489.
6. Cayman Island Dollars
This Caribbean British Territory has a reputation as being one of the best-known tax havens in the world.
Many of the world’s biggest insurance companies, hedge funds, and banks receiving licensing from the Cayman Islands.
7. European Euro
Adopted on January 1, 1999, the European Euro is the European Union’s primary currency. Considered the second world reserve currency, the Euro was introduced to encourage economic interdependency between the EU member states.
The Strongest Currencies in the World: A Recap
The top four strongest currencies in the world are all located in the Middle East, and three of them border the Persian Gulf. The rest of the list is rounded out by Europe, Britain, and the British territory of the Cayman Islands.
If you found this article on the strongest currencies interesting and educational, be sure to check out the rest of our blog for more informative content!
So, what do you think ?