Highest currencies in the world: If you tell yourself the truth, when you think of the highest currencies in the world, what comes to your mind is either the United States dollar, British pound, euro, yen or even rupees. Funnily, factually none of these currencies are in the top three currencies in the world in 2021, when speaking specifically about their values. Well, guess it’s going to be a long ride for you.
Factually, you will find some unpopular names mentioned when talking about the world highest currency in 2021. Also, it must be said that the highest currency do not always belong to the wealthiest nations of the world.
The highest strongest currency is simply and only based on the high value they possess when exchanged with INR. But actually if we are to be honest, even though the U.S. dollar is not the most expensive currency in the world, it is the most traded and strongest currency in the world. However, when it comes to the world’s highest and most valuable currency, several other currencies gave the US dollar a run for its money.
Highest currencies in the world: Top 10
1. Canadian dollar (CAD): First on our list of the most valuable currencies in the world is Canadian dollar. It is the tenth highest valued currency in the entire planet earth. Some persons informally referred to the Canadian dollars as “Loonie”.
This reference is to honor the bird that appears on the 10 dollar coin. The Canadian dollar’s short is CAD. In the world today, Canadian dollar is a fifth largest reserved currency and the sixth most traded currency. In fact, 5% of the total foreign trade takes place in Canadian dollar.
The country, Canada itself is a country that is highly blessed with natural resources and have them in abundance. Canada has a huge reserve of crude oil, and comes after Saudi Arabia and Venezuela in that regard. Also factually, Canada has the second largest uranium supply in the world. Interestingly also, the value of the Canadian dollar depends greatly upon global fluctuations, and the value of the United states dollar because the United States is the main importers of Canadian oil.
2. US Dollar (USD): In the United States of America, US Dollar is the official currency used. In fact, the US dollar is the most used and traded currency in the world. It must also be mentioned that the US dollar is also the most reserved currency in the world. In fact, both commercial and central banks all over the world reserve currencies in Dollars.
In terms of world power, even though the US is always challenged by other world powers like China, the United States of America is still the most powerful country in the world, and appears not ready to relinquish power any time soon. Worldwide, the US Dollar is often termed as the “Global Currency”, and this is also because they are the number one country. This also means that the US Dollar is accepted in most countries.
According to data published in the year 2018, there are around 1.69 trillion US Dollars in Circulation, and 70% of the banknotes of US Dollars are circulating outside the United States (US).
3. Swiss Franc (CHF): There is an old saying that dates back to past generations, it goes thus “if it is swiss then it is royal and expensive“. This saying is true because many swiss products including watches, chocolate, knives, etc. are famous around the world. That Is the reason why Switzerland has a stable and flourishing economy. As you must have guessed, the currency used in Switzerland is the Swiss Franc.
According to a report published by the UN in 2016, Switzerland is the third richest landlocked country in the world. This country attained wealth mostly because they are technologically very advanced. Plus, the country – Switzerland, also has a banking system operating largely on bank secrecy. According to many investors, the Swiss Franc is a safe bet because Switzerland has one of the world’s strictest monetary policies. This reason is why most of the wealthy people on the earth decide regularly, to store or invest their wealth in the official currency of Switzerland.
Switzerland’s banknote is also amazing. In fact, Switzerland’s banknote is the only banknote in the world that has a vertical look.
4. European Euro (EUR): European Euro is the most powerful currency in the world. When looking to invest on a large scale, this is the currency that you should opt for. Truthfully, Euro is getting stronger and stronger every year. The Euro is by far the 2nd most reserved currency in the world after the United States dollar. It has also been said that statistically around 25% of the world’s saving is in European Euro.
In the forex market, the Euro currency is the second most traded currency in the world in 2021 after United States dollar. In the world today, there are twenty five countries that have pegged their currencies with Euro at a fixed rate.
Also, it can be said with certainty, that Euro is the official legal tender in 19 counties of the European Union.
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5. Cayman Islands Dollar (KYD): Amusingly, this currency is amongst the big ones. Cayman Island Dollar, also known as KYD is the official currency of the Cayman Islands. Cayman Islands is an autonomous British territory. It is important to note that the Cayman Island Dollar is the only currency in the highest currency list from Caribbean countries.
This currency was introduced in 1972, and it replaced the Jamaican Dollar. Subsequently, it went on to become one of the strongest currencies in the World. The reason why the Cayman island dollar is expensive is simple. The Cayman Islands are tax havens in the world and they provide licences to a large number of insurance companies, hedge funds, and the world’s largest banks. These are the simple reasons. Currently, one Cayman Islands Dollar is equal to 1.22 US dollars.
6. British Pound Sterling (GBP): Remember the British Pound is so popular, and I guess you might have thought that British Pound Sterling will top this list of the top highest currencies in the world from 202. Well, you thought wrong. However the Pound is in the top ten, in fact, this currency is at the fifth position. The currency code or abbreviation of the British Pound Sterling is GBP and the Pound Sterling is equal to 1.38 US dollars and 102.53 Indian National Rupees (INR).
Also note that British Pound Sterling is the best currency in the entire Europe in 2021. Historically also, GBP is the oldest currency in the world that still exists.
British Pound Sterling is also the fourth most traded currency in the world behind US Dollar, European Euro, and Japanese Yen. This is because Britain does so much of economical activities and London is the financial capital of the world.
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7. Jordanian Dinar (JOD): The 7th most expensive currency is the Jordanian Dinar. This currency was introduced in the county in 1949 and the currency replaced the Palestinian pound. Sadly, despite the high value of Jordanian Dinar, it is hard to explain why this country is not developed economically.
Apart from this, the country has garnered huge external debt. According to many experts, a reason why Jordanian Dinar has a high value is that its government keeps fixed exchange rates of the currency. There are other reasons too. On a positive note, however , the Jordan is classified as an “Emerging Market Economy”.
8. Omani Rial (OMR): Omani Rial is the 8th most valuable currency in the world. The currency’s value is nearly double the value of the British Pound, and in relation to the value of the US Dollar, the currency is 2.60 times higher. The currency is pegged to the US dollar since 1973. It must be noted that purchasing power of Omani Rial is insanely high, that is why the Omani government has to occasionally issue banknotes of half Omani Rial and one-fourth Omani Rial.
Oman has a developed economy with a high standard of living because of its oil-rich territory. Also the government of Oman has in recent years, diversified its income resources by investing in metallurgy, gas production, and Tourism. This is a plan of the government to tackle depleting oil reserves in the country.
9. Bahraini Dinar (BHD): As of June 2021, Bahraini Dinar is the second highest currency in the world. Bahrain is a country in Arabian Gulf that is rich in oil. That is majorly why the Bahraini economy is heavily reliant on the export of petroleum products.
Indians are the largest expat group in Bahrain that is INR to BHD conversion is very popular. Interesting to note also is that the Saudi Riyal is also widely used and is legal tender in Bahrain along with Bahraini Dinar. The exchange rate of Saudi Riyal and Bahraini Dinar is fixed at 1 Dinar and is equal to 10 Saudi Riyal.
10. Kuwaiti Dinar (KWD): Kuwaiti Dinar is the highest Currency in the world. Currently ass of June 2021. The value of the currency is more than 3.31 USD. The currency code or abbreviation for the Kuwaiti Dinar is KWD.
The major reason why Kuwaiti Dinar is so strong is that the country Kuwait has a very strong and stable economy mostly because of its oil-rich land and industry. In fact in Kuwait, people do not pay tax. Just one KWD can buy you more than 245 Indian Nation Rupees. This is the reason why you can find a lot of Indians working in Kuwait.
As was said above, the value of a country’s currency depends upon a number of factors, and not just popularity. Many things go into compiling the list of highest currencies in the world, and it is no surprise that the layman does not know about them. I’m sure it was indeed a ride seeing currencies that you have never heard about.
Edeh Samuel Chukwuemeka ChMC, is a Law Student and a Certified Mediator/Conciliator in Nigeria. He is also a Developer with knowledge in HTML, CSS, JS, PHP and React Native. Samuel is bent on changing the legal profession by building Web and Mobile Apps that will make legal research a lot easier.