Are you wondering which currency is the highest in the world? When you think of the highest currencies in the world, you would think of the US Dollar or British Pound or Euro. But you are in for a surprise. The most expensive currencies of 2022 are none of the mentioned ones. And they don’t always belong to the wealthiest nations of the world. The ‘Highest Currency’ is based on the high value of them when exchanged with INR. US Dollar may not be the most expensive currency but it is the most traded and strongest currency in the world.
Are you curious about the world’s most valuable currency? BookMyForex analyzed the data to compile a list of the most valuable currencies in the world. When it comes to the world’s highest currency value, these currencies gave the US Dollar a run for its money, which is the most traded currency in the world. Here are the top 10 highest currencies in the world:
|Highest Currencies in the World
|United States Dollar
|Cayman Island Dollar
10: United States Dollar: USD
The US Dollar is the currency of the United States of America. The most popular United States Dollar exchange rate is the USD to EUR rate. It is the most traded currency in the world.
Almost every central bank and commercial bank holds it as the world’s primary reserve currency. It is said that no currency will ever replace the US Dollar as the most traded currency. It is a global currency that is backed by the power of US in the global political landscape. However, when ranked among the world’s strongest currencies, it comes 10th.
- Inflation: The US has a higher rate of inflation than many other countries, meaning that the dollar’s purchasing power declines over time.
- Trade deficit: The US has a trade deficit, meaning that it imports more goods and services than it exports. This can put downward pressure on the value of the dollar.
- Interest rates: Interest rates in the US are typically lower than interest rates in many other countries. This can make the dollar less attractive to investors.
Despite these reasons, The United States of America (USA) is considered as the most powerful nation in the world. Over the years, the strength of USD has increased massively. This is due to the size and strength of the US economy, as well as the US’s role in global politics and finance.
9: Euro: EUR
The Euro or EUR is the official currency of the eurozone, which consists of 19 of the 27 member states of the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Euro is the second largest reserve currency after the US Dollar. It is also the second most traded currency in the world. Euro is one of the strongest currencies and ranks 9th in this list.
- Strength of the eurozone economy: The eurozone is the second-largest economy in the world, after the United States, which gives the euro a pretty strong foundation.
- Political stability: The eurozone is generally considered to be a politically stable region. This is important for investors, who are more likely to invest in currencies from stable countries.
- Low-interest rates: Interest rates in the eurozone are typically lower than interest rates in the United States and other countries.
However, there are also a few factors that weigh on its value such as Government debt, inflation and political uncertainty. As a result, the euro ranks 9th in the list of the world’s strongest currencies.
8: Swiss Franc: CHF
The Swiss Franc is the currency of Switzerland and Liechtenstein. Switzerland is one of the of the world’s most stable and wealthy countries. The most popular Switzerland Franc exchange rate is the EUR to CHF rate.
The Swiss franc is also the 8th most traded currency in the world, here’s why.
- Switzerland’s political and financial stability: Switzerland is one of the most politically and financially stable countries in the world. This makes the Swiss franc a safe haven currency for investors in times of economic uncertainty.
- Switzerland’s strong economy: Switzerland has a strong economy with low unemployment and inflation. This makes the Swiss franc a desirable currency for businesses and investors.
- Switzerland’s central bank policy: The Swiss National Bank (SNB) has a strict monetary policy aimed at maintaining price stability. This helps to keep the Swiss franc strong.
7: Caymanian Dollar : KYD
The Cayman Islands Dollar is the currency of the Cayman Islands. The most popular Cayman Islands Dollar exchange rate is the USD to KYD rate.
Jamaican Dollar was in place till 1972 but then the Cayman Islands Dollar was put in as the official currency. The abbreviation of the currency is CI$. Currently, the value of KYD makes it the 7th highest currency in the world.
- Fixed exchange rate: KYD is pegged to the US dollar at a fixed exchange rate, so the Cayman Islands dollar is supported by the strength of US economy.
- Strong economy: The Cayman Islands itself has a strong economy, and pegging the dollar to the US dollar also helps to maintain stability.
- Low debt-to-GDP ratio: The country has a low debt-to-GDP ratio, which means that the government is in a strong financial position and is able to repay its debts.
Currently, one KYD is valued at 99.25 in INR.
6: British Pound: GBP
The pound sterling (£) or GBP is the currency of Great Britain and is the 5th strongest currency in the world. It is also the official currency of Jersey, Guernsey, the Isle of Man, South Georgia and the South Sandwich Islands, the British Antarctic Territory, and Tristan da Cunha.
The most popular United Kingdom Pound exchange rate is the EUR to GBP rate. Sterling is the fourth most-traded currency in the foreign exchange market, after the United States Dollar, the Euro, and the Japanese Yen. USD/GBP is the world’s third most traded currency pair and is commonly known as “cable”. Here’s why the currency is the 5th highest currency in the world:
- Strength of the UK economy: The UK is the sixth largest economy in the world by GDP, and it has a diversified economy with a strong services sector.
- Stability of the UK government: The UK is a stable democracy with a long history of political stability. Investors are more likely to invest in countries with stable governments.
- Independence of the Bank of England: The Bank of England is independent of the government, which means that it can make decisions about interest rates and other economic policies without political interference.
5: Gibraltar Pound: GIP
The Gibraltar pound or GIP is the currency of Gibraltar. It is pegged to – and exchangeable with – the British pound sterling at par value. Hence, both GIB and GBP are accepted in Gibraltar. The central bank controlling the GIP, with the responsibility of minting coins and printing notes, is the Government of Gibraltar.
The most popular Gibraltar Pound exchange rate is the EUR to GIP rate. The currency is the 6th highest currency in the world, here’s why:
- Fixed exchange rate: The currency is pegged to the British Pound: Due to this, GIP currency is supported by the strength of the UK economy.
- Strong and stable economy: It is a major financial center and a popular tourist destination. This helps to support the value of the GIP even further.
Currently, one Gibraltar Pound (GIP) is equal to 101.45 in Indian Rupees.
4: Jordanian Dinar (JOD): Fourth Highest Currency in the World
The Jordanian dinar or JOD is the currency of Jordan. In 1950, the currency replaced the Palestinian pound as Jordan’s official currency. West Bank used the Jordanian Donar and the Israeli shekel as well.
The most popular Jordan Dinar exchange rate is the JOD to EUR rate. Here’s why the currency is 4th strongest currency in the world:
- Fixed exchange rate: The JOD is pegged to the US dollar at a fixed exchange rate. This means that the value of the JOD is directly tied to the value of the US dollar.
- Diversified economy: Jordan has a relatively diversified economy, which is not overly reliant on oil exports. This makes the JOD less susceptible to fluctuations in the global oil market.
Currently, one JOD is valued at 117.29 in INR.
3. Omani Rial (OMR): Third Highest Currency in the World
The Omani Rial or OMR is the currency of Oman. Before 1940, Oman used INR as its official currency and this is why the most popular Rial exchange rate is INR to OMR Rate.
Situated on the southeastern coast of the Arabian Peninsula, Oman’s economy mostly relies on the oil reserves that they have. The Omani rial is divided into 1,000 smaller divisions, known as baisa, unlike most other currencies. Oman’s currency is pegged to the US Dollar, however, besides this, there are also other reasons why it is the 3rd highest currency in the world:
- Oil exports: Oman is a major exporter of oil and gas, which are two of the most valuable commodities in the world.
- Low inflation: Oman has a relatively low inflation rate, which helps to maintain the value of the OMR.
2. Bahraini Dinar (BHD): Second Highest Currency in the World
The Bahraini Dinar or BHD is the currency of Bahrain. Located in the Arabian Gulf, Bahrain is heavily reliant on oil exports. The most popular Bahrain Dinar exchange rate is the INR to BHD rate. The currency code for Dinars is BHD, and the currency symbol is BD.
Indians are the largest expat group in Bahrain and that explains the reason for INR to BHD popularity. Bahrain attracts expats from all over the globe because of being the second-highest currencyin the world.
- Oil exports: Bahrain is a major exporter of oil and gas, which are two of the most valuable commodities in the world.
- Fixed exchange rate: The BHD is pegged to the US dollar at a fixed exchange rate. This means that the value of the BHD is directly tied to the value of the US dollar.
- Low inflation: Bahrain has a pretty low inflation rate, which helps in keeping the value of the BHD stable.
1. Kuwaiti Dinar (KWD)- Highest Currency in the World
The highest currency in the world is none other than Kuwaiti Dinar or KWD. Initially, one Kuwaiti dinar was worth one pound sterling when the Kuwaiti dinar was introduced in 1960. The currency code for Dinars is KWD.
The most popular Kuwait Dinar exchange rate is the INR to KWD rate. The Indian expat community is very strong in Kuwait, hence the reason for being a popular currency pair. Kuwaiti Dinar has been the highest currency in the world for a while now because of the following reasons.
- Oil exports: Kuwait is one of the world’s largest exporters of oil, which is a valuable commodity. This gives Kuwait a strong economic foundation and supports the value of the KWD.
- Fixed exchange rate: The KWD is pegged to a basket of currencies, which includes the US dollar, the euro, and the Japanese yen. This means that the value of the KWD is not as susceptible to fluctuations in the global currency markets.
- Political stability: Kuwait is a politically stable country, which is another factor that attracts foreign investment and helps to support the value of the KWD.
- Relatively scarce currency: The Central Bank of Kuwait maintains tight control over the supply of KWD. This scarcity also helps to support the value of the currency.
FAQs on Highest Currency in the World
Q1. Which currency is the highest in the world?
Kuwaiti Dinar or KWD has been crowned the highest currency in the world. It is widely used in the Middle East for oil-based transactions. 1 Kuwaiti Dinar is equal to 268.97 INR.
KWD has maintained the position of the highest currency in the world for quite a while now. The economic stability of Kuwait is the reason behind this. INR to KWD rate is the most favored Kuwait Dinar exchange rate. In Kuwait, the Indian expat community is powerful, and therefore this is a popular currency pair.
Q2. Which currency is the most traded currency in the world?
The US dollar has established itself as the most traded currency in the world. It is the currency of the United States of America. It is also the primary reserve currency of the world as both the commercial and central banks throughout the world hold the US dollar for doing international transactions.
Even though it is in high demand for doing conversions, still the US dollar is lagging in the race for the top currency in the world. At present, the US dollar is equal to 83.20 INR, and it keeps fluctuating quite frequently. The people belonging to countries other than Gulf countries also use the dollar as a common standard currency.
Q3. Which is the world’s most stable currency?
The most stable currency in the world is the Swiss Franc or CHF, which is the currency of Switzerland and Liechtenstein. CHF represents the Confoederatio Helvetica Franc, which is the country’s name in Latin. One Swiss Franc or CHF is equal to 90.32 Indian Rupees. CHF is regarded as the safe-haven currency due to Switzerland’s low debt levels and sound monetary policies, and investors use it as a backup when facing instability or geopolitical tension.
Q4. What are the factors by which a country attains the highest currency value in the world?
There is a plethora of factors by which a currency gets influenced. The government needs to concentrate on a few economic factors such as inflation, economic growth, interest rates, and current account balance. The rise of the value of a currency occurs due to the following things:
- Stimulated growth of the economy.
- Rate of inflation’s moderate bump (around 2% a year).
- The improvement of the trade balance. The trade balance is the total amount of income, goods, services, and currency transference concerning other countries.
- The government of the country increasing the interest rates.
- Introduction of policies by the government that can influence supply-side economics.
Q5. Is having a high-value currency a good thing or a bad thing for the economy?
It can be both. For some countries, having a high-value currency is beneficial, whereas some countries can also benefit from having a weaker currency. This is because the weaker currency aids their export industry. Gaining significant market shares is easier for these countries as their goods are comparatively cheaper to buy. However, it is not always the strategy for the improvement of the revenues of exports. Currencies like the Nigerian naira or the Tanzanian shilling are weaker because of their grave economic challenges.