US Dollar Is Not The Strongest Currency In The World, See The Top 10 (2024 List)

Each nation of the world has a legal tender which makes it possible to conduct transactions either locally or internationally and, in some cases, both ways.

Naija News understands the United Nations recognizes 180 currencies worldwide as legal tender.

Though it’s one of the most popular, the United States dollar is far from being the strongest currency in the world, according to a 2024 report by Forbes.

Currencies play a crucial role in the global economy, symbolizing the strength and stability of their countries. They serve not just as instruments for international trade and finance, but also as indicators of a nation’s economic well-being and governance.

Below are the top 10 strongest currencies in the world, according to Forbes.

Kuwaiti dinar

The Kuwaiti dinar is the world’s strongest currency, with 1 dinar equivalent to 3.26 dollars, or conversely, $1 being equal to 0.31 Kuwaiti dinar.

Introduced in 1961, the Kuwaiti dinar, bolstered by the country’s substantial oil reserves, which it derives from its strategic location on the Persian Gulf between Saudi Arabia and Iraq, contributes significantly to its economic strength.

Bahraini Dinar (BHD)

The Bahraini dinar takes up the second spot in the list of strongest currencies globally. It is supported by Bahrain’s diversified economy, which includes oil and gas as well as finance and tourism sectors, contributing to its robustness.

The Bahraini dinar, introduced in 1965, holds a strong position, with 1 dinar equaling 2.65 dollars, or alternatively, 0.38 Bahraini dinar per dollar.

Omani Rial (OMR)

The Omani rial (OMR) is another of the world’s strongest currencies. Located on the southeastern coast of the Arabian Peninsula, Oman’s economy is largely dependent on its oil reserves.

The Omani rial was introduced in the 1970s, with 1 rial equivalent to 2.60 dollars, or $1 equaling 0.38 Omani rial.

Jordanian Dinar (JOD)

The Jordanian dinar ranks as the fourth-strongest currency globally, where 1 dinar is valued at 1.41 dollars, or $1 equals 0.71 Jordanian dinar.

Since its introduction in 1950, the Jordanian dinar has sustained a robust value, bolstered by Jordan’s careful fiscal policies and a diverse economy encompassing tourism, banking, and pharmaceutical sectors.

British Pound (GBP)

The British pound ranks as the fifth-strongest currency globally, with 1 pound valued at 1.22 dollars, or $1 equaling 0.82 British pounds.

According to the World Bank, Britain boasts the world’s sixth-largest economy by gross domestic product (GDP). The pound, first introduced in the 1400s and decimalized in 1971, operates as a free-floating currency, independent of pegs to other currencies.

Cayman Islands Dollar (KYD)

The Cayman Islands dollar (KYD) is the 6th most valuable currency in the world. It’s used in the Cayman Islands, which is a British territory in the Caribbean known for being a popular tax haven for rich people and big companies.

Caymans Island depends on sectors like tourism and real estate, with 1 Cayman dollar buying 1.20 dollars (or $1 equals 0.83 Cayman Islands dollar).

Gibraltar Pound (GIP)

The Gibraltar pound holds the seventh position among the world’s strongest currencies, with 1 pound valued at 1.22 dollars, or $1 equaling 0.82 Gibraltar pounds.

Covering only 2.6 square miles at the southern tip of Spain, Gibraltar is an official British territory. The Gibraltar pound was introduced in the 1920s and is pegged at par with the British pound, meaning one GIP equals one GBP.

Swiss Franc (CHF)

The Swiss franc holds the 8th position among the world’s strongest currencies and serves as Switzerland’s official currency. Its value surged against the euro and US dollar due to the European debt crisis and US monetary policy changes.

The Swiss franc, introduced in 1850, was briefly pegged to the euro before transitioning to a free-floating exchange rate. Currently, 1 franc is valued at 1.08 dollars ($1 equals 0.92 Swiss francs).

Euro (EUR)

The euro holds the ninth position among the world’s strongest currencies, with 1 euro valued at 1.08 dollars, or $1 equivalent to 0.93 euros.

The euro serves as the official currency in 20 out of the 27 countries comprising the European Union. Introduced with coins and banknotes in 2002, the currency operates on a free-floating exchange rate.

U.S. Dollar (USD)

The US dollar is used in the United States and many other countries. It’s the main currency kept by central banks and commercial banks globally. Because it’s so widely used, the US dollar is involved in about 88.3% of daily trades in the foreign exchange market.

The US dollar holds several top positions, such as being the currency of the richest country in the world, but it ranks only 10th among the world’s strongest currencies.