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TEMPO.CO, Jakarta - When it comes to money, not all currencies are created equal. Some are more valuable, making them more powerful compared to others. Investopedia explains that the differences in the value of currencies are subject to factors like interest rates, inflation, and supply.
Many are aware that the United States (U.S.) dollar has long emerged as the world’s reserve currency; it is, however, not the strongest on the global stage. So, what is the strongest currency in the world?
Citing Investopedia and Forbes India, we’ll explore the strongest currencies in the world, featuring the Kuwaiti dinar, British pound, and more, as of January 2025. Please note that the presented values of the following currencies are relative to the U.S. dollar.
1. Kuwaiti Dinar (KWD) (US$3.24)
The Kuwaiti dinar has consistently taken the crown of the strongest currency in the world. As of January 2025, the value of the Kuwaiti dinar stands at approximately US$3.24.
Its immense value stems from the country’s economic stability, coupled with Kuwait’s vast oil reserves.
2. Bahraini Dinar (BHD) (US$2.65)
Next up is the Bahraini dinar, which is equivalent to about US$2.65. Bahrain itself heavily relies on its oil activities, but the Gulf country diversifies its revenue streams through banking, finance, and tourism.
As for the currency, the BHD holds a relatively stable value since it is officially pegged to the U.S. dollar at a rate of 2.659 to one, as quoted from Investopedia.
3. Omani Rial (OMR) (US$2.60)
The coinage of the Omani Rial commenced in 1970 as the official currency, replacing the Indian Rupee. Similar to Bahrain, the OMR is pegged to the U.S. dollar at a rate of 2.60 to one. Oman is also an oil-producing country, like its neighbors.
4. Jordanian Dinar (JOD) (US$1.41)
Another currency pegged to the U.S. dollar, the Jordanian dinar, is named the fourth-strongest currency in the world, worth US$1.41. The JOD has been in circulation since 1950 to replace the Palestinian Pound.
As for the economy, tourism and direct foreign aid contribute heavily to the country’s revenue.
5. Gibraltar Pound (GIP) (US$1.23)
Gibraltar pegs its GIP to the British Pound, and it is equivalent to about US$1.23 as of January 2025. The British overseas territory builds its economy on tourism and e-gaming.
6. British Pound (GBP) (US$1.23)
The British Pound has long been a symbol of financial strength and history. It’s the oldest currency still in use today, introduced in the year 800, with a value of US$1.23 in January 2025.
Even after Brexit, the GBP has remained one of the most powerful and widely traded currencies in the world, thanks to the U.K.'s diverse economy and strong financial services sector.
7. Cayman Islands Dollar (KYD) (US$1.20)
The use of the KYD as the country’s legal tender traces back to 1972, transitioning away from the Jamaican Dollar. As per Investopedia, the currency relies on a fixed exchange rate pegged to the U.S. dollar at US$1.20 to one.
8. Swiss Franc (CHF) (US$1.09)
Named after the French king’s title “King of the Franks," FRANCORVM REX, the Swiss Franc is among the strongest currencies in the world, worth US$1.09. Switzerland’s robust economy is instrumental to the value of Franc.
9. Euro (EUR) (US$1.03)
Euro is the legal tender of 19 of the 27 European Union member states. Aside from being valuable, these paper banknotes are, too, among the most traded currencies in the world.
10. U.S. Dollar (USD)
Rounding off our list is the U.S. dollar, in circulation since 1972. While it may not have the highest value, the USD dominance in global trade and investments is attributable to its stable value and the U.S. robust economy.
These currencies, which possess immense value, indirectly signify the economic stability of their respective countries. For more similar content, see also our list of the cheapest currencies in the world.
FORBES INDIA | INVESTOPEDIA
Editor’s Choice: 10 Oldest Currencies in the World That Still Exist and Used Today
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