The 10 Strongest Currencies In The World In May 2024

The Bahraini dinar entered circulation in 1965 and is pegged to the US dollar. Note that any form of market-based investment or speculation puts all your capital at risk. Investments can go up and down in value, so you may lose some or all of your money. Leveraged products such as contracts for difference are highly speculative and carry the additional risk of losing money beyond that originally staked. The euro is the official currency of 20 out of the 27 countries that form the European Union.

Caymanian Dollar : KYD

A relatively small country located between Iraq and Saudi Arabia, Kuwait has a prosperous petroleum-based economy. By gross national income per person, Kuwait is the fifth-richest nation in the world, according to the World Bank. According to GDP per capita, Kuwait’s economy is the 20th biggest in the world.

US dollar (USD)

  1. Traders should constantly recheck the list of the top 20 strongest currencies in the world.
  2. The Euro has strengthened over the years, which allowed it to hold a strong place in the list of the most powerful world currencies.
  3. Manufacturing of textiles, cement, beverages, adhesives, and replacement parts for airplanes are all industries in the nation.
  4. Interest rate movements during the period saw the Bank of England, the central bank of the UK, increase its Bank Rate by 0.25% to 4.5% in May 2023.

The exchange rates are sourced from our currency converter, based on data from Open Exchange as at the time of writing. We’ve analyzed the strongest currencies, based on the number of units of foreign currency received in exchange for one US dollar. The exchange rates are sourced from our currency converter, based on data from Open Exchange as at the time of writing. The Australian dollar is extensively traded on international currency exchanges and is often considered a proxy for the Asia-Pacific region. In 2016, it ranked as the 5th most traded currency globally, following the US dollar, Euro, Japanese yen, and pound sterling, accounting for 6.9% of the world’s daily share.

Canadian dollar

Moreover, it’s one of the best ways for an investor to judge whether investing in a particular country is safe. Founder of Nomad Capitalist and the world’s most sought-after expert on global citizenship. 1 US dollar will exchange for around 1.36 Brunei dollars, giving the BND the same value as the Singaporean dollar. Brunei is ranked as a developed country and has the second-highest Human Development Index among the countries of Southeast Asia, after Singapore.

Swiss Franc (CHF)

In this article, Benzinga dives deep into the concept of value and discusses the most valuable currencies in the world. Yet, while currencies like the euro and pound are generally stronger than their counterparts, they will go through periods easymarkets review of weakness, which is what trading is about. Learning about the strongest currencies helps us understand where to focus our attention for the most potentially lucrative opportunities and where we might see the most significant action.

#10 – Canadian Dollar ($0.

As evidenced by the USD/CHF chart, yesterday one US dollar was worth 0.913 Swiss francs, but today it is already 0.903, indicating a rate drop of approximately 1%. The Iranian real is the worthless currency in the world as of March 2023. You can learn more about the weakest currencies in our article “Top 10 World’s Most Worthless Currencies”. When covering investment and personal finance stories, we aim to inform our readers rather than recommend specific financial product or asset classes. Milan is frequently quoted and mentioned in many financial publications, including Yahoo Finance, Business Insider, Barrons, CNN, Reuters, New York Post, and MarketWatch.

Today, its importance in global trade is waning, but it maintains its status as a major currency due to the UK being one of the world´s largest economies and a major financial center. The exchange rate of the Kuwaiti dinar is high compared to most other currencies. Unlike other Gulf Cooperation Council (GCC) countries, the currency is not pegged to the US dollar alone, but an undisclosed basket of international currencies. While the exact weighting of the US dollar is not known, it is assumed that it is high due to Kuwait´s dependence on oil (which is priced in USD). Let’s find out which currencies these are and what factors contribute to their strength. It’s no surprise that the Cayman Islands Dollar is one of the strongest currencies in the world, especially since the region is a popular tax haven.

The currency is highly valued, reflecting the economic potential and diversity of South Africa, the second-largest economy in Africa. South Africa is a major exporter of commodities such as gold, platinum, diamonds and coal. Due to the historical circumstances, low inflation rate, demand for UK’s export, and a high purchasing power, the GBP can be considered one of the strong world currencies. Switzerland has a strict monetary policy and low debt levels, making Franc a safe bet for investors while trading or storing currency. The Cayman Islands Dollar is the only Caribbean currency on the list of the highest ones. The reason is that this autonomous British territory is one of the world’s best tax havens and one of the five largest offshore financial centers.

See our trading fees​​ for more information and view our spreads and margin rates below for major, minor, and exotic pairs. The Australian dollar is also the 5th most traded on the forex market and accounts for around 6.8% of daily trades. Some reasons for why the AU dollar is so popular include its stability, high-interest rates, and the view that it holds diversification benefits. The Singapore dollar is expensive on the foreign exchange market, accounting for around 1.8% of daily forex trades. The New Zealand dollar or NZD takes its rightful place on the highest tender list at number 15. Its strength has been rising, most likely caused by the nation’s political stability, high interest rates and GDP growth.

Iran’s currency has been severely affected by a combination of Western sanctions, local politics and regional instability. Vietnam, by contrast, has been hit by economic issues, yet remains particularly appealing to foreign investors, particularly those looking for an affordable manufacturing alternative to China. The country has no personal income tax, is highly stable and one of the most prosperous economies in the world, and has a stable political landscape.

Brunei dollar or BND has been the currency for the Sultanate of Brunei since 1967. The Brunei dollar is interchangeable with the Singapore dollar at face value and both currencies are legal tender in each country. Starting off the list, the national currency of Bulgaria is known as the Bulgarian lev or BGN in its abbreviated form. In particular, the country’s economy is known for its mining, agriculture, and tourism services. The Aussie dollar or Aussie is the official legal tender not only in Australia but in some Pacific island states. The AUD, which has a strong association with commodities like iron, copper, and gold, is one of the most widely used currencies.

The Bahraini dinar is only used in Bahrain and is pegged against the US dollar. Our forex indices are a collection of related, strategically-selected pairs, grouped into a single basket. Trade on our 12 baskets of FX pairs, including the CMC USD Index and CMC GBP Index. A single US dollar will buy you around 0.76 Gibraltar pounds, which is very similar in value to the pound sterling.

The Bloomberg Spot Commodity Index rallied by more than 20 per cent in 2021 as the price of raw materials soared, but growth is expected to slow next year. Brexit trade negotiations continue to cast a shadow over the economy, while consumers will be squeezed by the soaring cost of living and a string of planned tax increases, Mr Kaplin adds. “The euro fell almost 8 per cent against the US dollar in 2021, but should stage a gradual recovery in 2022,” Mr Kirbaj says.

The peg is beneficial for Gibraltar as it maintains a very close relationship with the United Kingdom. Recognized as the official currency of the UK, as well as many of the United Kingdom’s overseas territories and crown dependencies, the Pound Sterling comes in many forms. Since the beginning of 2020, virtually every economy in the world has had to shift and adapt to the changes brought on by the COVID-19 global pandemic. Somewhat surprisingly, despite all the struggles faced by countries around the world, not a whole lot changed in regards to the positioning of the highest currencies in the world. The U.S. dollar is the 10th strongest currency in the world, worth exactly 1 against itself.

Euro coins and bank notes entered circulation in 2002, and the currency is free-floating. The Omani rial is the third-strongest currency in the world, with 1 rial buying 2.60 dollars (or $1 equals 0.38 Omani rial). Bahrain is an island nation in the Persian Gulf off the eastern coast of Saudi Arabia. The Bahraini dinar entered circulation in 1965 and is pegged to the dollar. However—perhaps surprisingly—the greenback is not the strongest of the 180-odd traditional fiat currencies recognized as legal tender worldwide.

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