Dollar, Pound Drop on Ranking of World's Most Valuable Currencies
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
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Currency values are essential in evaluating a nation's economic strength and stability, contributing to its overall monetary value. The value is determined by assessing how many goods and services can be purchased with one unit of the national currency and how much foreign currency can be exchanged for it.
A thorough analysis of various local and international factors is required to determine whether a currency is the most valuable or expensive globally.
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These factors include foreign exchange market supply and demand, inflation rates, domestic economic growth, central bank policies, and overall economic stability.
Below is a list of the world's most valuable currencies, based on their relative value against the U.S. dollar, according to Forbes.
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Country - Kuwait
Currency - Kuwaiti Dinar (KWD)
The Kuwaiti dinar is recognized as the strongest currency globally, with an exchange rate of around 3.30 USD per KWD. The dinar's strength is largely supported by Kuwait's vast oil reserves and prudent fiscal policies.
Although the nation's economy is primarily dependent on oil exports, initiatives to diversify its economic base are in progress.
Country - Bahrain
Currency - Bahraini Dinar (BHD)
The Bahraini dinar ranks as the second most valuable currency globally, with an exchange rate of about 2.65 USD per BHD. Its strength is supported by Bahrain's oil and gas exports, along with its position as a financial hub in the region. Additionally, tourism and manufacturing play key roles in driving the country's economy.
Country - Oman
Currency - Omani Rial (OMR)
The Omani rial is among the world's strongest currencies, with an exchange rate of around 2.60 USD per OMR. The rial's strength is bolstered by Oman’s oil and gas exports, alongside ongoing efforts to diversify the economy. Additionally, tourism and agriculture are key sectors contributing to the nation’s economic growth.
Country - Jordan
Currency - Jordanian Dinar (JOD)
The Jordanian dinar is among the world's strongest currencies, with an exchange rate of about 1.40 USD per JOD. Tourism and manufacturing are key drivers of the country's economy.
Country - United Kingdom
Currency - British Pound Sterling (GBP)
The British pound sterling ranks as the fifth-strongest currency globally, maintaining an exchange rate of about 1.30 USD per GBP, even amid recent political uncertainty.
The UK’s position as one of the largest economies in terms of gross domestic product (GDP) and its advanced financial system play a significant role in supporting the pound's value.
Country - Gibraltar
Currency - Gibraltar Pound (GIP)
The Gibraltar pound, which is pegged to the British pound (GBP), ranks as the sixth-strongest currency, with an exchange rate of around 1.30 USD per GIP. The strong economic ties between Gibraltar and the UK play a key role in maintaining the Gibraltar pound's value.
Country - Cayman Islands
Currency - Cayman Islands Dollars (KYD)
The strength and stability of the Cayman Islands dollar stem from the territory's position as a major international financial centre, supported by a strong regulatory framework and favourable tax policies. The KYD is pegged to the USD, with an exchange rate of about 1.00 USD per KYD.
Country - Switzerland
Currency - Swiss Franc (CHF)
The Swiss franc (CHF) is the official currency of both Switzerland and Liechtenstein. Switzerland, recognized for its economic stability, ranks among the world's richest nations.
The Swiss franc was first introduced in 1850 and, for a short period, was pegged to the euro before transitioning to a free-floating exchange rate system.
Currency - Euro (EUR)
The Euro (EUR) is the official currency of the Eurozone, which includes 19 European Union member countries. It is the second-largest reserve currency and the second-most traded currency globally. The euro is among the strongest currencies, holding the ninth position among major currencies.
Country - United States
Currency - Dollar (USD)
The US Dollar (USD), the official currency of the United States, is the most traded currency worldwide and serves as the primary global reserve currency. Although widely used, the US Dollar ranks 10th among the world’s strongest currencies.
- Disclaimer: Currency values mentioned in this blog are accurate as of August 2024 and are subject to fluctuation.
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