Investing in currency has proven to be a sound economic decision for investors for many years.
But, with such an array of currencies around the world, it can be unclear to know which country’s currency system to invest in.
Here, we’ll look to make things a bit clearer by showing you the five strongest currencies in the world.
What is currency strength and how can it be impacted?
In short, a strong currency is defined as one that is worth more than another country’s.
The strength of a currency is influenced by a huge range of factors. Some key ones include economic stability, high interest rates, and overall political stability. Without these, investing in these currencies comes with greater risk and can be off-putting to investors.
The need for traders to understand and leverage currencies is essential. Luckily, funded trading programs can help them achieve this without the need to invest significant personal capital.
Strong currencies are highly desired by countries due to their impacts. Imports are cheaper, investment into the country is more likely and there is of course the boost from tourism, with visitors enjoying getting greater value for money.
1. Kuwaiti Dinar (KWD): The world’s strongest currency
With its strong oil exports combined with careful financial management, the Kuwaiti Dinar remains the world’s strongest currency.
This currency was introduced in 1961 and has maintained its strong presence on the global market, made stronger by the country’s conservative fiscal policies.
Currently, the KWD is worth $3.25 USD.
2. Bahraini Dinar (BHD): Stability in the Gulf
Following a close second is Bahrain’s Dinar.
Whilst originally reliant on oil and gas exports, the country has diversified into different verticals such as finance and tourism.
Its sustained strength also comes from its fixed exchange rate with the US dollar, offering investors peace of mind.
At the time of writing, one BHD is worth $2.65 USD.
3. Omani Rial (OMR): A pillar of economic strength
Like Bahrain, Oman has a fixed exchange rate which, combined with strong economic fundamentals and management, makes it into the top three of currencies.
Diversifying its economy, while also remaining loyal to its roots in oil and gas, has ensured the Omani Rial remains an attractive investment opportunity.
One OMR is currently worth $2.60 USD.
4. Jordanian Dinar (JOD): Stability despite regional challenges
At number four on the list is Jordan’s Dinar. It was introduced back in the 1950s and since then this landlocked country in the Middle East has done well to strengthen its currency to this degree despite challenges in the country.
Jordan has used prudent fiscal policies and succeeded in diversifying its economy to climb to this place on the list.
One Dinar is currently worth $1.41 USD.
British Pound Sterling (GBP): A leading global currency
One of the oldest currencies in the world, the British Pound has been around since the 15th century.
In addition to its long history and centuries of economic stability, London’s position as a global financial center has ensured the British Pound Sterling remains one of the world’s strongest currencies.
Its diverse and resilient economy makes it a favorite among investors all across the world.
As it stands, one pound Sterling is worth $1.3 USD.
These countries’ currencies remain the world’s strongest
The factors that ensure a strong currency are all exhibited in these five countries. Strong economic stability combined with investment in a range of industries and sectors has seen the UAE rise to the top of the currency list.
Just outside the top five stands countries such as Gibraltar, the Cayman Islands and Switzerland who have all yet to enter the top five spots.
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