Have you ever wondered which currency is the strongest in the world? The United Nations recognizes about 180 currencies as legal tender, but which one has the greatest value? Read on to learn about the 16 strongest currencies that are used daily in 2021 and exchanged on the Forex market.
To compare the value of currencies, we used the US dollar as a fixed base currency. The strongest currency here is the one that costs the most compared to the US dollar. That is, the currency that gives the lowest currency yield for 1 US dollar.
New Zealand dollar
The New Zealand dollar (NZD) has taken a worthy place in the list of the strongest currencies at number 16. The strength of this currency is constantly growing, which is most likely due to the country’s political stability, high interest rates and GDP growth.
In exchange for 1 US dollar, you will receive about 1.52 New Zealand dollars. Despite the fact that the New Zealand dollar ranks 16th in the list of the strongest currencies in the world, it is ahead of many stronger currencies and is among the ten most traded currencies.
The Australian Dollar (AUD) is the national currency of Australia, and is also used by its external territories and some Pacific Island States. Although this currency is not the most expensive in the world, it is extremely valuable and is one of the most stable currencies on this list.
For 1 US dollar, you can get about 1.45 Australian dollars, which makes it one of the most expensive currencies. The Australian dollar also ranks 5th among the most traded currencies on the Forex market, accounting for about 6.8% of daily transactions. The reasons for the popularity of the Australian dollar are the stability of the currency, high interest rates and the opinion that it has the advantages of diversification.
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The Singapore Dollar (SGD) is the official currency of Singapore. It is used in both Singapore and Brunei.
For 1 US dollar, you can buy about 1.36 Singapore dollars. The Singapore dollar is an expensive currency that ranks 13th in terms of trading volume in the foreign exchange market, accounting for about 1.8% of daily Forex trading.
The Brunei Dollar or BND has been the currency of 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 of the countries.
1 US dollar is exchanged for about 1.35 Brunei dollars, which makes the BND slightly more expensive than the Singapore dollar.
The national currency of Libya is known as the Libyan dinar or abbreviated LTD. Interestingly, one dinar is divided into 1000 dirhams, unlike 100 dirhams, which are used in many other currencies.
For one US dollar, you can buy about 1.41 Libyan dinars. Although the Libyan dinar is not the most valuable currency in the world, it is still a very strong currency.
The Canadian dollar, or CAD, is the currency of Canada and one of the most popular currencies that central banks hold as foreign exchange reserves due to Canada’s legal and political stability. In addition, the Canadian dollar is a very popular currency when trading on the Forex market, and it accounts for about 5% of daily transactions on the global foreign exchange market.
For one US dollar, you can buy about 1.31 Canadian dollars, which puts it on the 11th place in the list of the strongest currencies in the world, but its global popularity outstrips its value.
United States dollar
The US dollar is the currency of the United States and a number of other countries. It is the world’s main reserve currency and is held by most central banks and commercial banks around the world. Due to the widespread use of the US dollar, it accounts for about 88.3% of daily transactions in the foreign exchange market.
The US dollar occupies many first places, including in the ranking of the richest countries in the world, but, remarkably, it ranks only 10th in the ranking of the world’s strongest currencies.
All currencies presented in this list are compared by their strength against the US dollar. Therefore, the US dollar is in 10th place, since 1 US dollar costs exactly that much – 1.0 US dollar. Learn more about trading our US dollar index, which is a basket of currency pairs with the US dollar as the base currency. It includes such major currency pairs as USD/JPY and USD/CHF.
The Swiss Franc or CHF is the national currency of Switzerland and Liechtenstein.
For 1 US dollar, you can buy about 0.98 Swiss francs, so the Swiss franc ranks first in value among currencies that exceed the US dollar. This, however, is not surprising, given that Switzerland is one of the most stable and richest countries in the world. In addition, along with the US dollar and the Japanese yen, it acts as a safe haven currency for investors during periods of economic instability.
The Swiss franc also ranks 7th in the world in terms of trade volume, having gained popularity as a reliable currency when trading or storing, due to tight monetary policy and low debt levels.
One of the newest currencies, the euro (EUR), is the official currency of 19 countries, making it the most common “official currency” in the world. The countries where the euro is used as the official currency include Germany, France and Spain, and it is often called the second reserve currency of the world. It is also known as the second most traded currency in the foreign exchange market, second only to the US dollar. In fact, the EUR/USD or “fiber” pair is the most traded currency pair in the world, accounting for almost a quarter of daily transactions on the Forex market.
In exchange for 1 US dollar, you will receive about 0.90 euros, or 90 cents. Thus, today this currency is the strongest in the list and the 8th strongest in the world.
Cayman Islands Dollar
On the 7th place among the most expensive currencies in the world is the Cayman Islands dollar or KYD, which is the national currency of the Cayman Islands. The Cayman Islands, an autonomous British Territory located in the Caribbean, is a major financial tax haven for wealthy individuals and corporations.
One US dollar can be exchanged for about 0.83 Cayman Islands dollars, making it the only and strongest Caribbean currency on this list.
The Gibraltar Pound or GIP is the national currency of Gibraltar and is exchanged for the British pound sterling at face value. Thus, in Gibraltar you can freely use both GIB and GBP.
For one US dollar, you can buy about 0.81 Gibraltar pounds, which is very similar to the value of the pound sterling.
The British pound sterling, or pound sterling, ranks 5th in the world in value. Although the pound sterling is not the strongest currency in the world, it retains the title of the oldest currency still in use.
The pound sterling is often considered the strongest currency in the world and is the most widely used currency in the world. In addition, it ranks 4th among the most traded currencies in the world, accounting for about 12.8% of daily transactions in the foreign exchange market.
When exchanging one US dollar, you will get about 0.75 British pounds in return. This currency pair (USD/GBP), commonly known as the “cable”, is the 3rd largest trading currency pair in the world. Do you have an opinion on whether the “cable” will rise or fall? Open a demo account and test your assumptions on our Forex trading simulator.
The national currency of Jordan is the Jordanian dinar or JOD, which currently ranks 4th in the world. This currency became the official currency of Jordan in 1950, replacing the Palestinian pound.
1 US dollar can be exchanged for about 0.71 Jordanian dinars, which allows this currency to rightfully occupy a place in the top five most expensive currencies.
The Omani Rial, or OMR, is the national currency of Oman. Unlike most conventional currencies, the Omani rial is divided into 1,000 smaller divisions called bais. After its introduction into circulation, the Omani rial rose rapidly in value due to the successful export of Omani oil and pegging to the US dollar.
One US dollar is exchanged for about 0.38 Omani riyal, which is almost twice the strength of the pound sterling!
Known as the strongest currency in the world, the Kuwaiti dinar (KWD) was introduced in 1960 and was originally equivalent to one-pound sterling. Kuwait is a small country located between Iraq and Saudi Arabia, whose wealth is largely due to the large world oil exports.
By exchanging 1 US dollar, you will receive only 0.30 Kuwaiti dinar, which makes the Kuwaiti dinar the most highly valued monetary unit in the world at face value, or simply “the strongest currency in the world”.
Which currency is the safest in the world?
The Swiss Franc (CHF) is generally considered the safest currency in the world, and many investors view it as a safe haven asset. This is due to the neutrality of the Swiss nation, a strong monetary policy and a low level of debt. You can trade currency pairs that include the Swiss franc, such as USD/CHF, EUR/CHF and GBP/CHF.
Why is the rate of the Kuwaiti dinar so high?
The strength of the Kuwaiti currency is explained by its participation in the oil and gas market. Kuwait is one of the world’s largest oil exporters, as it has large reserves throughout the country. Learn more about trading oil – a popular commodity among investors.
What are the 7 major currency pairs?
The seven major currency pairs account for about 75% of all Forex transactions worldwide. These include EUR/USD, GBP/EUR, AUD/USD and USD/CAD. Check out the full list of major currency pairs.
Which currency is the weakest in the world?
The weakest currency in the world is the Iranian rial or the Venezuelan bolivar. This is due to the high level of inflation, political conflicts and the weak economic condition of these countries. Visit our Forex trading page for more information about 330+ currency pairs that you can trade with us.
Which currencies are most popular?
The most popular currency pairs include such major cross-rates as EUR/USD, USD/JPY and GBP/USD, as they all represent rich and well-developed economies around the world. Check out our guide to the most traded currencies.