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 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 highest, these currencies gave the US Dollar a run for its money which is the most traded currency of the world. Here are the top 10 highest currency in the world:
|Sr.No.||Highest Currencies in the World||Value of||In INR|
|10||United States Dollar||1 USD||81.84 INR
|9||Euro||1 EUR||89.34 INR|
|8||Swiss Franc||1 CHF||90.51 INR
|7||Cayman Island Dollar||1 KYD||98.24 INR
|6||Gibraltar Pound||1 GIP||101.73 INR|
|5||British Pound||1 GBP||101.74 INR
|4||Jordanian Dinar||1 JOD||115.37 INR
|3||Omani Rial||1 OMR||212.78 INR
|2||Bahraini Dinar||1 BHD||217.65 INR
|1||Kuwaiti Dinar||1 KWD||266.81 INR
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 which is backed by the power of US in global political landscape. However, when ranked among the world’s strongest currencies, it comes 10th.
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.
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 8th in this list.
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. Switzerland’s famously secretive banking sector made the national currency a safe haven for international capital. The country pegged the franc to the euro when it joined the currency union, opting for a dual system rather than choosing to abolish the franc. With its strict monetary policies and low debt levels, the Swiss franc is also the 7th most traded currency in the world.
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. It is the 7th most strongest currency in the world.
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 5th highest currency in the world.
Currently one KYD is valued at 98.24 in INR.
6: 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 place is known as the overseas territory of Britain. The economy of Gibraltar is now dependent on a number of sectors like tourism and e-gaming.
Currently one Gibraltar Pound (GIP) is equal to 101.73 in Indian Rupees.
5: British Pound (GBP)
The pound sterling (£) or GBP is the currency of Great Britain and is the 5th most 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”.
The currency is also the oldest existing currency that is still in place. Britain’s London is known as the financial hub of the world. With Britain carrying out so many trade activities, there is little surprise to see this currency in the list.
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 Jordanian Donar and the Israeli shekel as well. The government of Jordan keeps fixed exchange rates which is a major reason behind the currency’s value so high. Jordan isn’t so heavily reliant on oil exports unlike its neighboring countries which is a good thing as their economy is diversified in multiple different sectors. The most popular Jordan Dinar exchange rate is the JOD to EUR rate.
Currently one JOD is valued at 115.37 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.
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 also 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. Bahraini dinars are pegged to the US dollar and are used only in Bahrain.
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 Currency in the world.
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. 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 oil-rich country’s economic stability.
As a small country between Iraq and Saudi Arabia, Kuwait’s economy rely heavily on global exports of oil. With such a high demand for oil, Kuwait’s currency is bound to be in demand. Another thing to note is that if you work in Kuwait, you do not have to pay any sort of taxes.
FAQs on highest currency in the world
Q1. Which currency is highest in the world?
Kuwaiti Dinar or KWD has crowned the highest currency in the world. Dinars is the currency code of KWD. It is widely used in the Middle East for oil-based transactions. 1 Kuwaiti Dinar is equal to 266.81 INR. KWD is maintaining the position of the highest currency of the worldfor 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 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 81.84 INR, and it keeps fluctuating quite frequently. The people belonging to countries other than Gulf countries use the dollar as a common standard currency.
Q3. Which is the world’s most stable currency?
The most stable currency of the world is the Swiss Franc or CHF, which is the currency of Switzerland and Liechtenstein. CHF represents Confoederatio Helvetica Franc, which is the country’s name in Latin. One Swiss Franc or CHF is equal to 90.51 Indian Rupees. CHF is regarded as the safe-haven currency due to Switzerland’s low debt levels and sound monetary policies, and the investors using 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 is needed 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, 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. But, it is not always the strategy for the improvement of the revenues of export. Currencies like the Nigerian naira or the Tanzanian shilling are weaker because of their grave economic challenges.