The Bank of Canada implements a strict monetary policy to keep inflation and interest rates under control. Canada also benefits from having a very strong banking system, minimal levels of corruption, and strong trade ties to the US (its largest trading partner). Investors also consider CAD a “commodity currency,” and its performance often mirrors trends in the global commodities market. The Singapore dollar is highly valued on the foreign exchange market, accounting for around 1.8% of daily forex trades. The U.S. is the world’s largest economy by GDP, and the dollar is easily the most-traded currency globally. And it’s widely circulated, with people in the U.S. sending tens of billions of dollars abroad to relatives and friends each year.

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We’ve put together a list of the highest-valued currenciesin 2022 compared to the US Dollar and Euro. You’ll be surprised to learn thatbeing the most widely traded, USD is not even in the middle of the list, butalmost at the end of it. Financial services and account offerings are provided through licensed banks and regulated financial partners. Yet their currency values are lower because they’re designed for massive export trade, liquidity, and global competitiveness.

The foreign exchange market, where currencies are traded, shows continuous adjustments driven by real-time data and global economic dynamics. The interplay of these factors in the foreign exchange market determines the relative strength or weakness of a currency at any given moment. Without a doubt, the US dollar stands as the world’s most powerful currency. It holds the top spot in trading and remains the largest reserve currency globally, even after the end of the Bretton Woods system. Supported by rich oil exports and strict financial policies, the Kuwaiti dinar remains a strong and stable currency in the global financial market.

Jordanian Dinar

In particular, the country’s economy is known for its mining, agriculture, and tourism services. This may lead to a decline in export competitiveness as other countries with weaker currencies can offer similar products and services at lower prices. The appreciation of the currency can also affect foreign investment and tourism, as the cost of investing or visiting becomes comparatively higher. Although a high-valued currency brings numerous benefits, it also poses some risks and challenges for a country’s economy.

Canadian Dollar

It has simplified travel within the Eurozone, as people can use the same currency across multiple countries. Additionally, it’s a common de facto currency used by small countries like Aruba, Cambodia, and the Dominican Republic. Below, we have listed the 14 highest currencies in the world, with their values compared to the American dollar. And as the major importer of Canadian oil is the neighboring US,CAD also correlates to USD value rise-and-falls.

Not Just Dollars: Meet the World’s Most Valuable Currencies

It anchors the value of the domestic currency, making it more predictable for businesses, consumers, and investors. After liberation, it was reinstated, and a new banknote series was introduced for the first time. However, in 1949, facing increasing economic pressure, the pound was devalued by 30.5% to $2.80. This move had a direct and negative impact on several major currencies, which were devalued against the dollar.

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The Omani Rial (OMR) is the official currency of the Sultanate of Oman and ranks among the most valuable currencies in the world. Its high value and stability is due to several important aspects of Oman’s economy and financial policies. Are you an entrepreneur who’s tired of fighting with old-school banks to get even the simplest things done?

Initially, there were even smaller denominations, but they were discontinued due to higher costs and ongoing inflation. Switzerland has a strict monetary policy and low debtlevels, making Franc a safe bet for investors while trading or storingcurrency. The world’s second most valuable currency is the BahrainiDinar, with a conversion rate of $2.66 per one Dinar. It is pegged to the USDollar, and its exchange rate against the USD remained stable since 1987.

Such a high value is explained byKuwait’s stable economy and significant oil exports into the global market,producing almost 95% of the country’s revenue. After the US Dollar, the Euro is the second most traded currency globally and is used by 20 of the 27 EU member states. It was introduced in 1999 and has simplified trade and travel within Europe since then, and has become a brand symbol representing Europe’s unity and economic power. The Bahraini dinar has been pegged to the US dollar since 1980 at roughly $2.65 for every BHD. Plus, the nation holds substantial reserves in USD to maintain the fixed rate and enable easier foreign investment. Forex traders often monitor rate announcements from central banks such as the US Federal Reserve or the Bank of Canada.

The Euro is the second most traded and the second-largest reserve currency globally, following the US dollar. Beyond the Eurozone countries, numerous European and even African nations peg their currencies to the Euro to ensure stable exchange rates. The pound sterling is also the 4th most traded currency globally, accounting for around 12.8% of daily trades on the foreign exchange market. The Australian dollar is extensively traded on international currency exchanges and is often considered a proxy for the Asia-Pacific region. In 2016, it ranked as the 5th most traded currency globally, following the US dollar, Euro, Japanese yen, and pound sterling, accounting for 6.9% of the world’s daily share.

The U.S. dollar is the 10th-strongest currency in the world, with 1 dollar buying 1 dollar. (Obviously.) All other units of currency across the globe are worth less than a buck. It is possible to make money trading, but it comes with many risks and extra costs that must be taken into consideration. Consult our section on ‘what else do you need to know’ before opening a potentially risky trade.

• These currencies are often chosen as investments or capital preservation, especially in times of economic instability, due to their stability and reliability.
• What makes the Kuwaiti Dinar really strong, though, is its peg to a basket of currencies, and not only the US Dollar.
• Additionally, CAD is a very popular option when forex trading, and accounts for around 5% of daily trades in the global foreign exchange market.
• This move had a direct and negative impact on several major currencies, which were devalued against the dollar.
• Exchange rates create opportunities for investors looking to profit from trading in foreign currencies.

• For instance, Japan has a weaker currency but a strong economy, which means high service and living costs.
• Bookmyforex by far has the best conversion rates with the least hassles and extremely supportive staff.
• Petroleum production here is the easiestand, therefore, the cheapest among other countries.
• One of the newest currencies, the Euro or EUR is the official currency of 19 countries, which makes it the most widely used in the world.
• In the complex world of economics, currencies act like threads that weave nations together.

Oman’s economy, much like many Gulf countries, heavily relies on oil exports, although it has managed to diversify. Oman possesses the 25th largest oil reserves globally, with identified reserves reaching up to 5.5 billion barrels. Its popularity among foreign banks and traders is attributed to Canada’s strong economic health and political stability. According to news reports, businesses in various regions of the United States are now accepting Canadian dollars, primarily for commercial purposes. Today, Kuwaiti Dinar is the highest-valued currency in theworld, estimating at $3.25 per Dinar.

The strongest here is defined as the one that is the most expensive in comparison to the US dollar. This information is up to date as of April 2022 and currency conversions are taken from Wise. This practice also aims to attract foreign investment and control inflation. Some countries peg their currency to commodities like gold or a basket of goods to form a tangible link between their currency and real-world assets. Pegging a currency to a stable and widely-used currency like the US Dollar to the Euro can provide a level of economic stability.

One of the newest currencies, the Euro or EUR is the official tender of 19 countries, which makes it the most widely best oil stocks used in the world. Countries where it is used include Germany, France and Spain, and it is often known to be the world’s second reserve money. It is also known to be the second most traded on the foreign exchange market, only preceded by the US dollar. In fact, the EUR/USD or ‘Fiber’ is the most traded forex pair in the world, accounting for almost a quarter of daily forex trades. One of the newest currencies, the Euro or EUR is the official currency of 19 countries, which makes it the most widely used in the world. The Kuwaiti dinar (KWD) holds a place of honour as the strongest and most valuable currency in the world against the US dollar.

Even though the NZD is the 15th strongest currency in the world, it beats many of the stronger ones and lands a top 10 place in the most traded currencies. Jordan is a largely landlocked country in the Middle East that is less dependent on oil and gas exports than other nations in the region. The Jordanian dinar entered circulation in 1950 and is pegged to the dollar. Oman sits between the United Arab Emirates and Yemen at the eastern tip of the Arabian Peninsula. When the dollar strengthens against the British pound, American travelers can get more pounds for their dollars and are essentially able to score cheaper vacations in London.

Political stability, market sentiment, and trade balances also affect currency values. Switzerland is among the world’s wealthiest nations, with an economy deemed a tax haven by investors due to its low tax rates and stability. The Swiss Franc serves as the official currency in Switzerland and Liechtenstein, and it’s accepted as legal tender in Campione d’Italia, a small Italian enclave in Lombardy.

I was genuinely shocked when I found out that it’s not even in the top five. My mind was blown, so I went down a rabbit hole to figure out which currencies are stronger, and this is what I found. The ‘Swissy’ has long held the exclusive status of a ‘safe haven’ because of Switzerland’s highly developed economy, commercial value, and quality of life. Moreover, the EURUSD market is the most dominant and accounts for a vast chunk of daily-occurring forex transactions.