As per the United Nations, 180 currencies worldwide are officially recognised as legal tender. However, popularity and wide usage do not necessarily equate to the value or strength commanded by a currency. Simply put, the concept of currency strength revolves around the purchasing power of a nation's currency when exchanged for goods, services, or other currencies.
For the unversed, a currency's strength is determined by evaluating the number of goods and services which can be purchased with one unit of the national currency and the amount of foreign currency obtained in exchange, as per a?Forbes India report. A comprehensive analysis of various local and international factors is necessary to ascertain whether a currency holds the title of the most valuable or expensive in the world. The factors include supply and demand dynamics in the foreign exchange markets, inflation rates, domestic economic growth, the policies implemented by the relevant central bank, and the country's overall economic stability.
So let us shine a spotlight on the 10 strongest currencies in the world currently, how the Indian Rupee stands against them, and the factors that contribute to their dominance:??
| Currency & Symbol | Value In Rs | ?Value in USD |
|---|---|---|
| 1 Kuwaiti Dinar (KWD) | 269.76 | 3.25 |
| 2 Bahraini Dinar (BHD) | 220.50 | 2.65 |
| 3 Omani Rial (OMR) | 215.87 | 2.60 |
| 4 Jordanian Dinar (JOD) | 117.39 | 1.41 |
| 5 British Pound (GBP) | 105.86 | 1.27 |
| 6 Gibraltar Pound (GIP) | 105.86 | 1.27 |
| 7 Cayman Island Dollar (KYD) | 99.93 | 1.20 |
| 8 Swiss Franc (CHF) | 94.44 | 1.14 |
| 9 Euro (EUR) | 90.47 | 1.09 |
| 10 United States Dollar (USD) | 83.12 | 1.00 |
The currency of the USA is USD, or the US Dollar. It is the most widely traded currency globally and holds the position as the primary reserve currency. Despite its popularity, it ranks 10th among the world's strongest currencies.
The Euro (EUR) is the official currency of the Eurozone. Euro is the second-largest reserve currency and the second-most traded currency worldwide. The euro stands as one of the strongest currencies, holding the ninth position.
The Swiss Franc (CHF) serves as the currency of Switzerland and Liechtenstein. Known for the stability of its economy, Switzerland is among the world's wealthiest countries.
The official currency of the Cayman Islands is the Cayman Islands Dollar (KYD). Although it ranks seventh among the strongest currencies, its value is the fifth highest globally. Initially using the Jamaican Dollar, the Cayman Islands adopted their own currency in 1972.
The Gibraltar Pound (GIP) is the currency of Gibraltar, pegged at par value to the British pound sterling (GBP). As a British overseas territory, Gibraltar depends on sectors like tourism and e-gaming. The GIP holds the 6th position among the strongest currencies.
?Also Read:??Explained: How RBIs Digital?Rupee?(e?) Is Different From UPI
Great Britain uses the British Pound (GBP), which is also pretty broadly used in other countries and territories. As the world's fifth strongest currency, it holds a significant place in global finance. London's status as a financial hub and Britain's extensive trade activities contribute to the strength of the pound.
The Jordanian Dinar (JOD) has served as the currency of Jordan since it replaced the Palestinian pound in 1950. Jordan's fixed exchange rates and diversified economy have contributed to the high value of its currency, ranking it as the fourth strongest globally.
The Omani Rial (OMR) is the currency of Oman and was introduced after the country ceased using the Indian Rupee as its official currency. As a country with significant oil reserves, Oman's economy heavily relies on the oil sector. The Omani Rial, which is tied to the US dollar, is the third most valuable currency in the world.
The Bahraini Dinar (BHD) serves as the currency of Bahrain, an island nation in the Arabian Gulf heavily reliant on oil exports. The BHD is pegged to the US Dollar and is exclusively used in Bahrain. With a strong expat community, including a significant number of Indians, the BHD holds the position as the second strongest currency globally.
The highest-valued currency in the world is the Kuwaiti Dinar (KWD). Since it was first introduced in 1960, the Kuwaiti dinar has consistently ranked as the world's most valuable currency. Kuwait's economic stability, driven by its oil reserves and tax-free system, contributes to the high demand for its currency. Among Indian expats, the INR to KWD exchange rate is particularly popular.
Also Read:?How RBI Creates & Distributes Indian?Rupee?Banknotes
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