Forex
Top 17 Strongest Currencies in the World in 2024
By Nathalie Okde
13 June 2024
The strongest currency in the world means that it has the highest buying power among all other currencies. A strong currency can buy more than another currency, whereas a weak one buys less. So, here are the top 17 strongest currencies in the world right now in 2024.
Key Takeaways
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Exchange rates between two currencies determine currency strength.
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Kuwaiti Dinar (KWD) is the strongest currency due to oil wealth.
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The Iranian Rial is the weakest currency in the world due to political instability and imposed sanctions.
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Forex trading involves buying one currency while selling another to profit from its relative strengths.
What Is Currency Strength?
Currency strength refers to the value of one currency compared to another. Think of it as a measure of how much "buying power" one currency has when exchanged for another.
When we say a currency is strong, it can buy more of another currency. However, a weak currency buys less of another currency.
You can calculate a currency’s strength relative to another based on the exchange rate between these two. For example, the EUR/USD= 1.09. So, 1 Euro buys 1.09 USD, making the Euro stronger than the US dollar.
What Are the Top Strongest Currencies?
Below is a list of the top strongest currencies in the world in 2024:
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Kuwaiti Dinar (KWD)
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Bahraini Dinar (BHD)
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Omani Rial (OMR)
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Jordan Dinar (JOD)
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British Pound (GBP)
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Gibraltar Pound (GIP)
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Cayman Islands Dollar (KYD)
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Swiss Franc (CHF)
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Euro (EUR)
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United States Dollar (USD)
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Canadian Dollar (CAD)
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Brunei Dollar (BND)
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Singapore Dollar (SGD)
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Australian Dollar (AUD)
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New Zealand Dollar (NZD)
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Hong Kong Dollar (HKD)
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Libyan Dollar (LYD)
1. Kuwaiti Dinar (KWD)
Source: Wikipedia
The Kuwaiti Dinar is currently the world's strongest currency, holding its value due to Kuwait's robust oil industry. When writing this article, KWD/USD = 3.26, which shows how strong the dinar is.
This strength is fueled by Kuwait’s vast oil reserves and small population, which generates significant revenue. This small but wealthy nation has a well-managed economy, which helps maintain the high value of its currency against others.
2. Bahraini Dinar (BHD)
Source: Wikipedia
The Bahraini Dinar is another top performer, thanks to its strong financial sector and oil exports. For reference, when writing this article, BHD/USD = 2.65.
Bahrain has strategically positioned itself as a financial hub in the Gulf region, attracting significant foreign investment. The country's stability and economic policies further support the high value of the Bahraini Dinar.
3. Omani Rial (OMR)
Source: Wikipedia
The Omani Rial benefits from Oman’s substantial oil exports and prudent fiscal policies. For reference, when writing this article, OMR/USD = 2.60.
Although Oman has diversified its economy, oil remains a critical component. The government’s efforts to maintain economic stability and the relatively low population contribute to the Rial's strength.
4. Jordan Dinar (JOD)
Source: Wikipedia
The Jordanian Dinar might not come from an oil-rich country, but it’s still one of the strongest currencies globally. For reference, when writing this article, JOD/USD = 1.41.
Jordan’s strategic location and political stability make it an attractive destination for foreign investment and aid, which helps maintain the value of its currency.
5. British Pound (GBP)
Source: Wikipedia
The British Pound, one of the oldest currencies in the world, remains strong due to the United Kingdom’s diversified and advanced economy. For reference, when writing this article, GBP/USD = 1.27.
Despite recent challenges like Brexit, the UK's financial services, education, and manufacturing sectors continue supporting the Pound’s value.
6. Gibraltar Pound (GIP)
Source: Wikipedia
The Gibraltar Pound pegged at par with the British Pound, derives its strength from Gibraltar’s stable economy. For reference, when writing this article, GIP/USD = 1.27.
Gibraltar’s status as a significant financial center, coupled with its strategic location at the entrance to the Mediterranean, contributes to the GIP's stability and value.
7. Cayman Islands Dollar (KYD)
Source: Wikipedia
The Cayman Islands Dollar is strong due to the island's status as a significant offshore financial center. For reference, when writing this article, KYD/USD = 1.20.
The territory’s favorable tax policies attract a plethora of banks and hedge funds, which helps maintain the high value of the KYD against other currencies.
8. Swiss Franc (CHF)
Source: Wikipedia
The Swiss Franc is known for its stability and safety and is often seen as a "safe haven" currency. For reference, when writing this article, CHF/USD = 1.10.
Switzerland’s strong economy, political neutrality, and highly developed banking sector ensure that the Franc remains a preferred currency for investors looking for security during uncertain times.
9. Euro (EUR)
Source: Wikipedia
The Euro, used by 19 of the European Union’s member countries, is one of the world’s major currencies. For reference, when writing this article, EUR/USD = 1.08.
The economic strength of the Eurozone, which includes powerhouses like Germany and France, underpins the value of the Euro. Its wide acceptance and use in international trade also fuels its strength.
10. United States Dollar (USD)
Source: Wikipedia
The United States Dollar is the most widely used currency in the world, benefiting from the vast and diverse US economy. As the primary reserve currency governments and institutions hold globally, the USD is pivotal in international trade and finance, ensuring its strength and stability.
11. Canadian Dollar (CAD)
Source: Wikipedia
The Canadian Dollar is bolstered by Canada’s rich natural resources, especially oil. For reference, when writing this article, CAD/USD = 0.73.
Canada’s strong banking system and stable political environment also support the value of the CAD. Its ties with the US economy further enhance its strength and global standing.
12. Brunei Dollar (BND)
Source: Wikipedia
The Brunei Dollar benefits from Brunei’s wealth in oil and gas reserves. For reference, when writing this article, BND/USD = 0.74.
The small population and the government’s substantial investment income help maintain the BND's high value. It’s also pegged to the Singapore Dollar, adding to its stability.
13. Singapore Dollar (SGD)
Source: Wikipedia
The Singapore Dollar is strong due to Singapore’s economy and status as a global financial hub. For reference, when writing this article, SGD/USD = 0.74.
The country’s strategic location, stable political environment, and sound economic policies contribute to the SGD’s strength, making it a favored currency in Asia.
14. Australian Dollar (AUD)
Source: Wikipedia
The Australian Dollar is supported by Australia’s rich natural resources, including minerals and agricultural products. For reference, when writing this article, AUD/USD = 0.66.
Australia’s stable economy, strong trade relations, particularly with China, and sound fiscal policies contribute to the strength of the AUD.
15. New Zealand Dollar (NZD)
Source: Wikipedia
The New Zealand Dollar gains strength from the country’s stable economy and significant agricultural exports. For reference, when writing this article, NZD/USD = 0.61.
New Zealand’s political stability and attractive investment environment also maintain the NZD's value.
16. Libyan Dinar (LYD)
Source: Temehu
The Libyan Dinar is relatively strong due to Libya’s substantial oil reserves. For reference, when writing this article, LYD/USD = 0.21.
Despite political instability, the value of the LYD remains supported by the country's oil exports. Efforts to stabilize and rebuild the economy continue influencing the Dinar’s strength.
17. Hong Kong Dollar (HKD)
Source: Wikipedia
The Hong Kong Dollar is bolstered by Hong Kong’s status as a major financial center. For reference, when writing this article, HKD/USD = 0.13.
Pegged to the US Dollar, the HKD benefits from Hong Kong’s robust banking sector, open economy, and strategic location, which ensure its stability and value.
Trading Currency Pairs
Speaking of the strongest currencies in the world, you can actually trade currencies to profit from their varied strength. Currency trading, also known as forex trading, is the largest financial market in the world, with over $6 trillion traded daily.
Currencies are always traded in pairs, meaning you’re buying one currency and selling another. For instance, when trading the EUR/USD pair, you buy euros while selling US dollars.
The first currency in the pair is the base currency, and the second is the quote currency. The pair’s price tells you how much of the quote currency you need to buy one unit of the base currency.
Moreover, forex trading operates across global exchanges 24 hours a day, five days a week. This round-the-clock activity makes the Forex market dynamic and highly liquid, and it, therefore, holds great profit potential.
Conclusion
The world's strongest currencies, such as the Kuwaiti Dinar, Bahraini Dinar, and Omani Rial, play significant roles in global finance. Solid economies, strategic financial policies, and, in many cases, substantial natural resources like oil often fuel their strength.
Understanding these currencies and the factors contributing to their strength provides valuable insights into global economic dynamics. Moreover, as mentioned above, you can trade these currencies for potential profit. So, if you want to start trading in forex, contact us now!
FAQs
What Is the Strongest Currency in the World?
The strongest currency in the world is the Kuwaiti Dinar (KWD). Its high value is primarily due to Kuwait's vast oil reserves, which generate significant revenue.
What Contributes to the High Value of the Kuwaiti Dinar?
The high value of the Kuwaiti Dinar is primarily attributed to Kuwait's substantial oil reserves and the revenue they generate. Additionally, Kuwait has a relatively small population and a well-managed economy, which helps maintain the Dinar's strong value against other currencies.
What Is the Weakest Currency in the World?
The weakest currency in the world is the Iranian Rial (IRR). Iran's currency struggles are due to severe economic sanctions, high inflation, and political instability, which combine to keep the value of rials extremely low compared to other global currencies.
The IRR/USD exchange rate is 0.000024, which is extremely low. You’d need 42,225 Iranian Rial to buy just one dollar.
What Is the Most Stable Currency?
The most stable currency is the Swiss Franc (CHF). Switzerland's political neutrality, robust economy, and highly developed banking sector make the Franc a "safe haven" currency. Investors navigate towards it during global economic uncertainties, maintaining its stability and reliability.
What Is the Safest Currency in the World?
The Swiss franc (CHF) is often considered the safest currency in the world. Its reputation for stability and reliability makes it a preferred choice for investors during global economic uncertainty.
Which Currencies Are the Most Commonly Traded?
The most commonly traded currencies are the US Dollar (USD), the Euro (EUR), and the Japanese Yen (JPY). The US Dollar dominates global trade and finance, while the Euro is widely used across Europe and in international transactions. The Japanese Yen is also highly traded due to Japan's significant role in global trade.
Other frequently traded currencies include the British Pound (GBP), the Australian Dollar (AUD), and the Swiss Franc (CHF).
