The 10 most powerful currencies in the world in 2024

The global currency landscape has been severely affected by the COVID-19 pandemic, witnessing a widespread decline in value as economies struggle to adapt to the evolving situation. With job losses mounting and governments grappling with the challenges, there is anticipation of significant transformations in global economies.

Discussing the most valuable currencies amid these shifts is an intriguing subject, and in this article, we will highlight the top-ranking, strongest, and most robust currencies worldwide.

Before delving into the list, it's crucial to understand the factors that contribute to a currency's ascendancy and depreciation. Paying close attention to the following elements elucidates how currencies fluctuate and why:

1. Low inflation rates in a country bolster the strength of its currency.
2. Currencies of nations with higher interest rates gain strength as lenders reap greater benefits, attracting foreign investments.
3. Political and economic stability in a country attracts investors, consequently influencing its currency exchange rates.
4. High demand for a country's currency is generated by foreign purchases of its products. If a nation's goods are competitively priced, foreign buyers seek its currency for transactions, especially if it offers the most cost-effective commodities.
5. The implementation of prudent monetary policies by a country reduces the supply of its currency, leading to its appreciation.
6. Countries with minimal or advantageous tax policies tend to attract more foreign investments, bolstering their domestic currencies.
7. Nations like Saudi Arabia, major exporters of crude oil and natural gas, often possess robust currencies. The pricing of crude oil in U.S. dollars drives up demand for the currency during oil price surges.
8. A stable and well-regulated banking system, exemplified by countries like Switzerland, instills investor confidence and contributes to the strength of their currencies.
9. Economic growth rates significantly impact currency exchange rates. Emerging markets with promising growth prospects attract foreign investments, strengthening their currencies. Conversely, economic downturns deter investors, leading to currency depreciation.

Now that we know what factors cause a country's currency to appreciate, it's time to look at the ten most valuable currencies in the world. Without further ado, let’s get started!

This article covers the following topics:

FAQs 

Main points

• This article outlines the ten strongest currencies in 2023, highlighting the role that central bank policy and economic stability play in keeping currencies strong.

• This article emphasises that the euro is a frequently traded and stable currency whose value is determined by the political, social, and economic status of the euro area member states.

• Due to its stability, the Swiss franc is considered a safe currency, especially in times of crisis.

• As the world's most traded currency and the global reserve currency, the U.S. dollar retains its value even in turbulent times.

• The Canadian dollar's value is closely tied to the U.S. dollar and Canada's natural resources, such as oil and uranium.

• Summary: Political stability, economic stability, low inflation, high interest rates, and well-crafted monetary policy can increase the value of a currency. This article also lists the weakest currencies, noting that the Kuwaiti dinar is the most expensive currency and the Swiss franc is the safest.

The top 10 most powerful currencies in the world in 2023

We list the 10 most valuable currencies in 2023:

sort	currency (currency code)	exchange rate
1	Kuwaiti dinar (KWD)	1 KWD = 3.26 USD
2	Bahraini dinar (BHD)	1 BHD = 2.65 USD
3	Omani Rial (OMR)	1 OMR = 2.60 USD
4	Jordanian dinar (JOD)	1 JOD = 1.41 USD
5	British Pound (GBP)	1 GBP = 1.26226 USD
6	Cayman Islands Dollar (KYD)	1 KYD = 1.20 USD
7	Euro (EUR)	1 EUR = 1.07637 USD
8	Swiss Franc (CHF)	0.87345 CHF = 1 USD
9	US Dollar (USD)	1 USD = one dollar
10	Canadian dollar (CAD)	1.34728 CAD = 1 USD

1. Kuwaiti dinar

itThe Kuwaiti Dinar (KWD) is considered the strongest and most valuable currency in the world in 2023, and they is not pegged to the US dollar and can circulate freely. Kuwait is one of the richest countries in the Middle East and borders the northwest Persian Gulf. It is an oil-rich country, which increases the value of Kuwait's currency. Kuwait has built up a sizable sovereign wealth fund over the years. The fund is managed by the Kuwait Investment Authority (KIA) and contributes to the long-term high value of the Kuwaiti dinar.

Since Kuwait's economy is completely dependent on the country's huge oil and gas reserves and oil exports, a collapse in global crude oil prices will lead to a deficit in the Kuwaiti economy. However, KIA has developed a seven-year plan to address this issue and ensure that the Kuwaiti dinar remains strong and stable. Increased demand for crude oil will push up and support domestic official currency prices. Conversely, lower demand coupled with increased supply will cause oil prices to fall and hurt the Kuwaiti dinar.

1 KWD = 3.26 USD

2. Bahraini dinars

Bahrain is a small country and one of the former British colonies. The Bahraini dinar is the second-most valuable currency. Pegged to the U.S. dollar, the Bahraini dinar, code BHD, has a face value slightly higher than the Omani rial. Despite the negative impact of low oil prices on Bahrain's economy, the average annual price of the Bahraini dinar has remained stable since 2011. Inflation in Bahrain is also stable and low. The only way Bahrain can keep inflation low is through stability and low price growth; both factors contribute to a stronger economy. Therefore, the Bahraini dinar is the second most valuable currency on our list.

1 BHD = 2.65 USD

3. Omani Rial

The third largest currency is the Omani Rial. Since the last adjustment of the exchange rate system in 1986, the fixed exchange rate has remained at one Omani rial equal to US$2.6008. With strict monetary policy and financial restrictions in place, the Omani rial (OMR) exchange rate remains unchanged against the US dollar. To protect the country from the unfortunate but frequent wars and instability in the Middle East, Omani politicians have historically regulated the currency supply. As a result, the country's official currency has risen, and Oman's lending restrictions tend to favour riskier offshore businesses and foreign exchange trading activities.

1 OMR = 2.60 USD

4. Jordanian dinar

Although the Jordanian dinar (currency code: JOD) has been pegged to the U.S. dollar since 1995, its value is higher than the U.S. dollar. It is the fourth-most valuable currency in the world. This is done to keep Jordan's fiat currency stable in order to attract U.S. investment. Something to remember is that any country can peg its currency to the U.S. dollar at any time. To maintain a peg to the U.S. dollar, currencies such as the Jordanian dinar must maintain their value relative to the U.S. dollar. Jordan succeeded in doing this during the first two decades of the twenty-first century.

1 JOD = 1.41 USD

5. British pounds

 

The pound is the fifth-largest currency in the world and one of the most traded currencies. For decades, the Bank of England (BOE) has followed global currency trends, making the pound worth more than the dollar. The British pound (GBP), the official currency of the United Kingdom, was more valuable than the U.S. dollar for much of the twentieth century. In the 1980s, this pattern changed, with the pound regaining its previous advantage over the dollar.

While BOE is the most important factor in determining the value of the British Pound Sterling (GBP), there are other factors. Inflation and economic growth play their respective roles. Forex market sentiment is another factor you should consider. Since the UK is one of the leading and most stable economies, global political and economic events affect the value of the pound.

1 GBP = 1.26226 USD

6. Cayman Islands Dollar

In the 1970s, the exchange rate of the Cayman Islands dollar (KYD) was fixed at 1 KYD equal to US$1.20. It ranks sixth on the list of the most valuable currencies in the world. Producing a currency worth more than the U.S. dollar may seem like a simple process, but the reality is more complicated than it appears. When local economic conditions falter and the U.S. raises interest rates, a currency like the Cayman Islands dollar may struggle to maintain its peg to the U.S. dollar. The Cayman Islands dollar's exchange rate is largely supported by the country's status as a tax haven for the wealthy.

1 GBP = 1.26226 USD

7. Euro

The euro is the second most traded currency in the world and is considered one of the most stable currencies. Because the European Central Bank (ECB) sets monetary policy for the European Union's eurozone and is responsible for monetary policy across the continent, it is less influenced by national governments than most other central banks. This independence helps keep the euro strong, but it also prohibits certain countries, such as Greece and Italy, from taking specific actions (such as printing more currency) to help stimulate the economy, thus exacerbating Europe's sovereign debt crisis and unemployment rise. It forms the most common currency pair with the US dollar in global foreign exchange market transactions. EUR/USD (Euro/U.S. Dollar) is considered one of the most traded currency pairs.

Since the euro is the official currency of nineteen countries, its value is affected by the political, social, and economic status of those countries. This includes stock market conditions, forecast confusion and analysis, and measures taken by the European Central Bank.

1 EUR = 1.07637 USD

8. Swiss Franc

The Swiss franc ranks eighth on the list of the most valuable currencies in the world and is the official currency of Switzerland. The Swiss franc has appreciated against the euro and the Swiss franc against the US dollar due to the European debt crisis and US monetary policy. The Swiss National Bank said in 2015 that the Swiss franc would no longer be pegged to the euro. Although euros are often used as a means of payment in Switzerland, change can only be given in Swiss francs. The Swiss Franc ranks highly in the ranking of safe currencies in the Forex market and is always a safe currency to invest in.

Due to the European debt crisis in 2008, many investors turned to the Swiss franc. Since the franc is a stable currency, this makes it a safe haven currency that everyone needs, allowing you to continue to earn returns even in crisis situations.

0.87345 CHF = 1 USD

9. USD

The US dollar (USD) is the official currency of the United States of America, the most traded currency in the world, and one of the largest reserve currencies. The US dollar is the most widely used currency in the world and is considered the benchmark for currency rates and conversion rates in the international market. It is also used as legal tender by many countries outside the United States, and many other countries use it as an unofficial currency, used alongside their national currencies.

The U.S. dollar has long been regarded as the cornerstone of the global economy and the global reserve currency for international trade and finance. No matter how the world situation changes, the U.S. dollar is a safe investment currency. In addition to fundamental and technical factors, market psychology and geopolitical risks also affect the value of the U.S. dollar in global markets.

10. Canadian Dollar

The Canadian dollar is the official currency of Canada, the sixth most traded currency in the world, and is also included in the list of the most traded currencies in the world. Canada's natural resources rank third in the world, thanks to the country's vast oil reserves and the second-largest uranium deposits (both located in Alberta). The Canadian dollar is particularly susceptible to fluctuations in the value of the U.S. dollar because Canada conducts the vast majority of its trade in U.S. dollars.

1.34728 CAD = 1 USD

Summarise

Finally, looking at the list of the world’s strongest currencies and what they need to do to get there, it’s clear that everything is in the hands of policymakers at the highest levels. Whether a currency appreciates or depreciates depends on the central bank's monetary policy and the quality of management of the existing system. Strength and stability go hand in hand to increase the value of any currency.

To sum up, factors that lead to an increase in currency value include political stability, economic stability, low inflation, high-interest rates, well-planned monetary policy, and low prices to attract countries with higher purchasing power. Strongly developed economies strive to reduce unemployment and secure a presence in the currency trading world of banking and foreign exchange markets.