Kuwait expelled Iraq in 1991 after which the banks re-valued their currency to $3.47, the highest valued currency in the world. Form the past 30 Years, Kuwaiti dinar is the highest currency. Kuwait’s highly developed petroleum industries, as well as its leading financial services, are the two major reasons due to which its currency is way stronger than US dollar.
Top 10 Highest Currencies in the world in the year 2021
Have you ever thought of the number of currencies that exist in the world? Or which one does have the highest value? Or which currency is the oldest of all?
Well, there are 180 currencies used in 194 countries at present. With today’s currency exchange rates, the US Dollar or Euro strikes the mind of most people when they think of currencies with the highest value or the strongest currency, which is not true at all. The world’s oldest currency that is still in use is the British Pound (GBP), US Dollar, on the other hand, remains the most traded currency in the world for a while now.
Why, what & how, will definitely be your reaction when you will roll-down on the list below, to have a look at the Top 10 highest currencies, also enjoy reading few fun facts about them.
|Value in USD
|Value in EUR
|Cayman Islands Dollar
1. Kuwaiti Dinar (KWD)
I know its bit hard to digest the fact that a small country like Kuwait will occupy the first position on this list. Kuwait came into circulation in 1969, after the independence of Kuwait. More than 80% of Kuwait’s revenue comes from the oil and gas industry.
Fun fact: This currency can be openly used for any purpose, even for online gambling without any regulations and additional charges.
2. Bahrain Dinar (BHD)
The Bahrain Dinar is the second-highest in the world that came into existence in the year 1965.
Bahrain is a Persian Gulf island state with an overall population of just around 1 million people. Before 1965 Bahrain used the Persian Gulf rupee as their currency. The major part of Bahrain’s revenue comes from the export business of black gold.
Fun fact: The exchange rates of Bahrain Dinar against the US Dollar have remained stable since 2005.
3. Omani Rial (OMR)
Another strong from the Middles East that came into circulation in the year 1973, the Omani Rial is the third-highest in the world. The purchasing power of Omani Rial is so high that the Oman government started issuing 1/4 & 1/2 Rial banknotes.
Fun fact: Oman used to have INR as its local before 1940, later replaced with a stronger currency.
4. Jordanian Dinar (JOD)
The Jordanian Dinar came into circulation in 1949, Jordanian Dinar has been ranked as the fourth-highest
in the world, although Jordan is not much economically developed and also lacks essential resources, like oil.
5. British Pound (GBP)
GBP is the currency of Great Britain. It may not be termed as the highest currency in the world but is the oldest currencies that still exist. It is also the official currency of Ireland and is the fourth most-traded currency in the foreign exchange market.
Fun fact: Prior to the First World War in 1914, gold sovereign worth 1GBP were in circulation.
6. Cayman Islands Dollar (KYD)
A lot of people might not be aware but the Cayman Island Dollar (KYD) is one of the strongest Caribbean currency and also one of the newest currencies in the world which is in circulation from 1972.
Fun fact: Cayman Island is considered as a “Tax Haven”, because the country does not enforce huge taxes even if the business is done outside the country.
7. Euro (EUR)
After a lot of preparations, euro was first launched on 1 January 1999 but only as an invisible currency just for accounting purposes. The Euro is the official currency of the Eurozone, which consists of 19 of 28 member states of the European Union. Euro has one of the highest values of banknotes & coins in circulation in the world and surpassed the US Dollar at one time.
8. Swiss Franc (CHF)
Swiss Franc or CHF is the national currency of Switzerland and Liechtenstein that came into circulation in 1907. Switzerland is not only one of the richest countries in the world but its currency CHF is the only currency in the world that is unaffected by inflation.
Fun fact: Swiss Franc is the only currency whose banknote is vertical in view and is less prone to fake emulations when compared to Euro & US dollar.
9. US Dollar (USD)
US Dollar came into circulation in the year 1794, in the year 1869 portrait of George Washington was depicted on $ 1 note. Being high in demand when it comes to currency conversion, US Dollar falls away back in the list of highest currency values in the world. US Dollar is the most traded currency in the world, its value may have depreciated but the strength is still intact.
Fun fact: US dollar banknotes are made of 75% cotton & 25% linen due to which it can be folded for at least 8000 times unlike any other normal paper.
10. Canadian Dollar
The Canadian dollar (CAD) came into circulation in 1858 with $1 banknote. The CAD is often called as “LOONIE” in honour of the bird which is depicted on a one-dollar coin. The Canadian dollar is also the fifth largest world currency.
Pros & Cons of Currencies with Highest Value
- Cheaper imports- Goods that are imported from a region where the currencys is low or weak than the imports will be cheaper because of the difference in the currencys strength of both countries.
- Foreign Country’s business will Gain- A country with a weaker currencies doing business in a country where currencies value is stronger will definitely show some great profits. The basic logic behind this is the lower manufacturing cost of the products that are manufactured in a country with a weaker currencys.
- Travels are cheaper in Abroad- When traveling to a country where the strength of the currency is weaker you can spent freely without having a fear of exceeding your budget.
- Home-grown companies will have less profit in abroad– It is obvious that the manufacturing cost will be more in a country where the currency is stronger. When this product is sold to a weaker currency country, the value/revenue generated by the manufacturing country is less.
- Higher Fake banknotes– Higher the currency, the higher is the chance of more fake currency banknotes. The Royal Mint estimated around 2 billion of 1 Pound coins are fake. In the United States, around $140 million fake currency is circulating.
Why US Dollar is the Strongest Currency, while not being the Highest one?
US dollar might not be one of the highest valued currencies, but it is undoubtedly the strongest currency in the world. According to the International Monetary Fund (IMF), more than 61% of the world’s currencies reserves are held in USD. US dollar is the world’s most traded currency and more than 75% of $100 banknotes are in circulation outside the US.