The United Nations recognises around 180 currencies as legal tender but only one holds the most value? Africa Facts Zone presents the strongest currencies in the world that are used on a daily basis in 2020.
To compare the value of the currencies, we have used the United States dollar as the fixed base currency. The strongest currency here is defined as the one that is the most expensive in comparison to the US dollar. That is, the currency that gives you the smallest currency return for 1 US dollar.
Strongest Currencies In The World 2020
10. Strongest Currencies In The World 2020 : US Dollar
The US dollar is the currency of the United States and its one the strongest currencies in the world. It is the world’s primary reserve currency and is held by most central banks and commercial banks globally. Because of its widespread adoption, the US dollar also accounts for around 88.3% of daily trades in the foreign exchange market.
All currencies on this list are compared for their currency strength relative to the US dollar. Therefore, the US dollar appears at 10th position, as 1 US dollar is worth exactly that- 1.0 US dollar.
9. Swiss Franc
The Swiss franc or CHF is the national currency of both Switzerland and Liechtenstein.
1 US dollar will buy your around 0.98 Swiss Franc, so the Swiss franc comes in as the first currency to be higher value than the US dollar. This, however, is no surprise given that Switzerland is one of the most stable and wealthy countries in the world.
The Swiss franc is also the 7th most traded currency in the world and one the strongest currencies in the world, gaining its popularity as a safe bet when trading or storing currency, due to its strict monetary policies and low debt levels.
The EURO is the primary currency of the European Union and was adopted on January 1, 1999. It holds the title as the second world reserve currency and is the official currency of 19 of the 28 member countries in the EU.
The currency first began virtually, in the form of traveller cheques and electronic bank transfers, and physical notes and coins appeared a few years later in 2002. The introduction of the EURO was meant to increase the economic interdependency of trade between all EU member that choose to adopt it.
Countries, where it is used as an official currency, include Germany, France and Spain. It is also known to be the second most traded currency on the foreign exchange market only preceded by the US dollar and one the strongest currencies in the world.
In exchange for 1 US dollar, you will receive around 0.90 Euro, or 90 cents. This makes it the strongest currency in the list so far, and the 8th strongest in the world.
7. Cayman Islands dollar
The 7th most expensive currency in the world is the Cayman Islands dollar or KYD, which is the national currency for the Cayman Islands. An autonomous British territory located in the Caribbean, the Cayman Islands are a major financial tax haven for wealthy individuals and corporations.
They provide banking licenses for a number of the world’s biggest banks, hedge funds, and insurance companies. The KYD was introduced in 1972 as a replacement for Jamaican Dollars and has gone on to become one of the strongest currencies in the world
A United States dollar is exchangeable for around 0.83 Cayman Islands dollar- making it the only and strongest Caribbean currency on the list.
6. Gibraltar pound
The Gibraltar pound or GIP is the national currency of Gibraltar and is exchangeable with the British pound sterling at face value. Therefore, in Gibraltar, you are free to use both GIB and GBP.
All notes and coins of the Gibraltar Pound are printed by the Government of Gibraltar. The most common Gibraltar exchange rate is the GIP to the Euro rate.
A single US dollar will buy you around 0.81 Gibraltar pounds, which is very similar in value to the pound sterling.
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5. Strongest Currencies In The World 2020 : Pound Sterling
The Great British pound, the pound sterling or the GBP is the 5th most valuable currency in the world. The GBP is one of the strongest currencies in the world, it does keep the title as the oldest currency still in circulation.
The pound sterling is often thought to be the strongest currency in the world and is the strongest currency in the world that is widely used. It’s also the 4th most traded currency globally, accounting for around 12.8% of daily trades on the foreign exchange market.
With the United Kingdom deciding to leave the EU, this has had a negative effect on the Pounds value.
Currently, 1 GBP can be exchanged for 1.26 USD. This currency pair (USD/GBP), is commonly known as “cable” and is the 3rd most traded currency pair in the world.
4. Jordan Dinar
The national currency of Jordan is the Jordanian dinar or JOD, which earned the 4th position as one the strongest currencies in the world today.
The Jordanian Dinar, JOD, is the official currency of Jordan, an Arabic nation on the bank of the river Jordan. Introduced in 1949, replacing the Palestinian pound, the Jordanian Dinar has been pegged by the United States Dollar for the past 2o years.
This has helped it to become one of the strongest currencies in the world. However, despite its status, the Jordanian Dinar is still only used in Jordon and nowhere else in the world.
Currently, 1 US dollar is transferrable for around 1.41 USD. Jordanian Dinar, earning the currency a rightful place in the top 5 most valuable currencies.
3. Omani Rial
The Omani Rial is the third strongest currency on our list.
This Arabian currency was first introduced in 1973 and has seen a significant rise in value due to the success of the countries oil supply and being pegged to the U.S Dollar. It’s the official currency of the Sultanate of Oman and is the third-highest status currency in the world.
The Omani rial quickly rose in value after being introduced due to the success of Oman’s oil exports and being pegged against the US dollar.
The purchasing power of this currency is so high, that the government has to introduce 1/4 and 1/2 Rial banknotes.
As of 2019, 1 OMR is equivalent to 2.60 USD.
2. Bahrain Dinar
The second strongest currency in the world is the Bahrain dinar or BHD. The official currency of Bahrain and first introduced in 1965. Bahrain is a PersianGulf Island State, populated by just over 1 million people. Most of the expats in Bahrain are Indian, which makes the BHD to INR the most common.
The majority of the countries wealth comes from exporting its petroleum products. Like most Arabic currencies on this list, it is divided into 1000 smaller currency units, in this case, called ‘fils’. The Bahraini dinar is only used in Bahrain and is pegged against the US dollar.
Of similar value to the Omani rial, when trading 1 US dollar you will receive 0.38 Bahraini dinar.
1. Kuwaiti Dinar
The worlds strongest currency is the Kuwaiti Dinar. Located on the tip of the Persian Gulf, between Iraq and Saudi Arabia, Kuwait’s wealth can be attributed to its heavy exports of oil to a global market.
It was first introduced in 1961 after gaining its independence from the United Kingdom and has since gone on to become the most valuable currency in the world.
Over the years, the Kuwaiti Dinar has been pegged to a number of different currencies. Most recently, it was pegged to the U.S. dollar from 2003 to 2007 which makes is one the strongest currencies in the world.
More recently, it has been pegged to an unnamed basket, valued at 1 KWD to 3.29 USD.
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