Have you ever wondered what currency is the most powerful in the world? The United Nations recognises around 180 currencies as legal tender, but which one is the most valuable?
As we all know, the value of currencies around the world fluctuates on a regular basis. Some currencies are regarded to have a higher value than others. Certain countries have currencies with values ranging from $10,000 to $100,000, whereas others have currencies with values ranging from $20 to $100,000.
Many individuals assume that the US dollar and the British pound are the two most powerful currencies in the world, with significant influence over other currencies. This is not the case, as other currencies have far higher conversion rates than the US dollar and the British pound.
16. New Zealand dollar
The New Zealand dollar (NZD) takes its rightful place at number 16 on the list of the world's strongest currencies. The strength of this currency has been increasing, owing to the country's political stability, high interest rates, and strong economic growth.
For every US dollar, you will receive approximately 1.52 New Zealand dollars. Even though the New Zealand dollar is the world's 16th strongest currency, it outperforms many of the stronger currencies and is among the top ten most traded currencies.
15. Australian dollar
The Australian dollar (AUD) is Australia's official currency, as well as the currency of its foreign territories and several Pacific island nations. It is incredibly valued and one of the most stable currencies on this list, while not being the most costly currency in the world.
The Australian dollar is one of the most expensive currencies accessible, costing roughly 1.45 US dollars. The Australian dollar is also the fifth most traded currency on the FX market, accounting for approximately 6.8% of all daily trades. The AU dollar's popularity stems from the currency's stability, high interest rates, and the belief that it offers diversification benefits.
Do you believe the Australian dollar will rise or fall in the rankings? You can trade the Australian dollar with a risk-free forex trading demo account, where you can trade the AU dollar and a variety of other currencies using virtual currency.
14. Singapore dollar
Singapore's national currency is the Singapore dollar (SGD). It is used in Singapore as well as Brunei.
1 US dollar is roughly equivalent to 1.36 Singaporean dollars. The Singapore dollar is a costly currency that is the 13th most traded currency on the forex market, accounting for about 1.8 percent of daily forex trades.
13. Brunei dollar
Since 1967, the Sultanate of Brunei has used the Brunei dollar (BND) as its official currency. Both the Brunei dollar and the Singapore dollar are legal money in their respective countries and are interchangeable at face value.
The BND is slightly more expensive than the Singaporean dollar, with 1 US dollar converting to roughly 1.35 BND.
12. Libyan dinar
Libya's national currency is the Libyan dinar, or LYD as it is abbreviated. A single dinar is subdivided into 1000 dirham, unlike many other currencies, which use a sub-measurement of 100.
A single US dollar will buy around 1.41 Libyan Dinar. LYD is a highly strong money, despite not being the most valued currency in the world.
11. Canadian dollar
Due to Canada's legal and political stability, the Canadian dollar, or CAD, is one of the most attractive currencies for central banks to retain as foreign exchange reserves. Furthermore, when it comes to forex trading, CAD is a very popular alternative, accounting for roughly 5% of all daily trades in the worldwide foreign exchange market.
The worth of a single US dollar is approximately 1.31 Canadian dollars, ranking it 11th among the world's strongest currencies, but its global popularity outweighs its value.
10. United States dollar
The United States and several other countries use the US dollar as their currency. It is the world's major reserve currency, and most central banks and commercial institutions around the world hold it. Because of its broad use, the US dollar accounts for approximately 88.3 percent of daily foreign exchange trades.
The US dollar owns a number of first-place titles, including the richest country in the world, yet it ranks just 10th among contenders for the strongest currency in the world.
The currency strength of each of the currencies on this list is compared to the US dollar. As a result, the US dollar is ranked 10th, because one US dollar is worth exactly that - 1.0 US dollar. Learn more about trading our US dollar index, a basket of currency pairs with the US dollar as the basis currency. Major FX pairs such as USD/JPY and USD/CHF fall into this category.
9. Swiss franc
Both Switzerland and Liechtenstein use the Swiss franc (CHF) as their official currency.
The Swiss franc is the first currency to have a higher value than the US dollar, with 1 US dollar buying roughly 0.98 Swiss Franc. This is unsurprising, given that Switzerland is one of the world's most stable and prosperous countries.
Due to its stringent monetary regulations and low debt levels, the Swiss franc is also the world's seventh most traded currency. It has gained a reputation as a safe bet whether trading or keeping currency.
The Euro, or EUR, is one of the newest currencies, and it is the official currency of 19 countries, making it the world's most extensively used "official currency." Germany, France, and Spain are among the countries that utilise it as an official currency, and it is sometimes referred to as the world's second reserve currency. It's also the second most traded currency on the foreign exchange market, trailing only the US dollar. In fact, the EUR/USD, often known as the 'Fiber,' is the world's most traded currency pair, accounting for about a quarter of all daily forex deals.
You will receive roughly 0.90 Euro, or 90 cents, in return for one US dollar. This makes it the most powerful currency on the list so far, and the 8th strongest in the world.
7. Cayman Islands dollar
The Cayman Islands dollar, or KYD, is the world's seventh most costly currency. It is the native currency of the Cayman Islands. The Cayman Islands, an autonomous British territory in the Caribbean, are a major financial tax haven for affluent individuals and corporations.
The Cayman Islands dollar is worth roughly 0.83 US dollar, making it the sole and most powerful Caribbean currency on the list.
6. Gibraltar pound
Gibraltar's native currency, the Gibraltar pound, or GIP, is exchangeable at face value with the British pound sterling. As a result, you can use both GIB and GBP in Gibraltar.
A single US dollar will buy around 0.81 Gibraltar pounds, which is extremely similar to the pound sterling in terms of value.
5. Pound sterling
The Great British pound, sometimes known as the pound sterling or GBP, is the world's fifth most valued currency. Although the GBP is not the world's strongest currency, it does hold the distinction of being the world's oldest currency currently in use.
The pound sterling is commonly regarded as the world's strongest currency, and it is the world's most widely used currency. It's also the world's fourth most traded currency, accounting for roughly 12.8 percent of daily foreign exchange trades.
When exchanging a single US dollar, you will receive approximately 0.75 British pounds. This currency pair (USD/GBP) is known as "cable" and is the world's third most traded currency pair. Do you think ‘cable' will rise or fall in popularity?
4. Jordan dinar
Jordan's national currency is the Jordanian dinar, or JOD, which is now ranked as the world's fourth most powerful currency. In 1950, the currency replaced the Palestinian pound as Jordan's national currency.
The Jordanian Dinar is worth roughly 0.71 US dollar, putting it in the top five most valuable currencies in the world.
3. Omani rial
Oman's national currency is the Omani rial, abbreviated OMR. The Omani rial, unlike most other currencies, is divided into 1000 smaller portions known as baisa. Due to the strength of Oman's oil exports and its peg to the US dollar, the Omani rial immediately appreciated in value after its introduction.
A single US dollar will be worth roughly 0.38 Omani Rial, which is nearly double the value of the Pound Sterling!
2. Bahrain dinar
The Bahrain dinar, or BHD, is the world's second most powerful currency. It is divided into 1000 smaller currency units, termed fils in this case, as are most Arabic currencies on this list. The Bahraini dinar is a local currency that is tied to the US dollar.
When trading 1 US dollar for 0.38 Bahraini dinar, the exchange rate is identical to that of the Omani rial.
1. Kuwaiti dinar
The Kuwaiti dinar, or KWD, was launched in 1960 and was initially equivalent to one pound sterling. It is known as the world's strongest currency. Kuwait is a small country wedged between Iraq and Saudi Arabia, whose wealth has been driven largely by its large global exports of oil.
After exchanging 1 US dollar, you will obtain 0.30 Kuwait dinar, making the Kuwaiti dinar the world's highest-valued currency unit per face value, or simply "the world's strongest currency."