Highest Currencies in the World 2024 [Top 10]

Last updated: 01 January 2024

Whenever we hear about the strongest currency in the world, we often think of US dollars however, there are other currencies as well which are even stronger than US dollars.

There are also various assumption and wrong judgment that goes into the currency. In India, our government is often criticized for currency with no value but it might be surprising for you that RBI and the Ministry of Finance purposely devalue the currency.

This manipulation of currency helps the economy with exports, and economic growth hence, all the developing countries that include China, India, etc. devalue their currency to improve their exports.

In this article, we will discuss the top countries with the Highest Currency Value in the World in 2024, the exchange rate, the concept of currency, and much more.

Highest Currencies in the World

Concept of Currency

Currency is a medium of exchange of value for the goods and services we seek. In modern terms, it is the promise that the central bank of the country for instance in the case of India, the Reserve Bank of India gives to the holder of the currency notes.

During ancient times, the currency was often minted using a metal and the metal’s value used to become the value of the currency.

Throughout history, currencies of the world were backed by an intangible asset, however, in the 1970s, a new type of currency was found i.e., Fiat Currency.

Fiat Currency is a currency that is issued by the Government as a promissory note that the central bank would provide to the holder.

It is not backed by any commodity such as gold hence, making its value determined purely by the demand and trust of the people in the government.

Exchange Rate as of 2024 w.r.t. India

The Exchange Rate tends to change a lot and depends on the monetary policies of the Central Banks of India and the United States. The following is the exchange rate as of 2024 with respect to India and the strong currency of the world-

1Kuwaiti Dinar1 KWD269.26 INR
2Bahraini Dinar1 BHD219.78 INR
3Omani Rial1 OMR219.47 INR
4Jordanian Dinar1 JOD116.64 INR
5British Pound1 GBP105.33 INR
6Gibraltar Pound1 GIP105.19 INR
7Cayman Island Dollar1 KYD99.31 INR
8Swiss Franc1 CHF92.32 INR
9Euro1 EUR89.94 INR
10United States Dollar1 USD82.75 INR

List of Highest Currencies in the World

The following is the list of the highest currencies in the world

KWD- Kuwaiti Dinar

Kuwaiti Currency

The highest and most valued currency in the world is the Kuwaiti Dinar. Even Kuwait has the INR to KWD as the most popular exchange rate.

Indian ex-pats are in large numbers in Kuwait which explains INR to KWD rate popularity. Kuwait has huge reserves of Oil and a stable economy which makes it the highest currency in the world. if you work in Kuwait, you do not have to pay any sort of taxes.

BHD- Bahraini Dinar

Bahraini Currency

Bahraini Dinar is the official currency of Bahrain located in the Arabian Gulf. It is also an oil-producing nation with the most popular exchange rate as INR to BHD rate.

Indians in Bahrain are the largest ex-pats in the country and it is also the world’s favorite destination for ex-pats due to it having the second-highest currency in the world.  

OMR- Omani Rial

Omani Currency

Omani Rial is the official currency of Oman which was adopted after 1940. Before 1940, the Indian Currency was used in Oman and hence, the popular exchange rate is the INR to OMR rate.

Oman is located on the southeastern coast of the Arabian Peninsula and is a rich oil-producing nation. The Omani Rial is pegged to US dollars.

JOD- Jordanian Dinar

Jordanian Currency

The Country of Jordan prints, mints, and regulates the Jordanian Dinar. The Government of Jordan keeps the exchange rate fixed hence, the value of the Jordanian Dinar is high.

Jordan is an oil-exporting country located in the Middle East making it one of the high-currency countries in the world.

GBP- British Pound

British Currency

The currency of Great Britain which is also known as the Pound Sterling is the official currency of Britain, Jersey, Guernsey, the Isle of Man, South Georgia and the South Sandwich Islands, the British Antarctic Territory, and Tristan da Cunha

After the United States Dollar, the Euro, and the Japanese Yen, British Pound is the most traded currency in the world.

It is one of the oldest existing currencies in the world. Britain’s London is known as the financial hub of the world due to its policy with the international exchange rates and highly effective Forex Trading market.

GIP- Gibraltar Pound

Gibraltar Currency

Gibraltar is a British Overseas Territory located between Spain and Northwest Africa. Gibraltar uses Gibraltar Pound as its official currency.

It is pegged to the British Pound sterling at par value. The Central Bank of Gibraltar controls the GIP with the responsibility of minting coins and printing notes.

KYD- Cayman Island Dollar

Cayman Island Currency

Introduced in 1972 by replacing the Jamaican Dollar, the Cayman Island Dollar is the official bank currency of Cayman Island.

Cayman island is located in the south of Cuba between Jamaica and Mexico. It has one of the highest standards of living in the Caribbean due to its highest per capita income of USD 91,392/-

CHF- Swiss Franc

Swiss Franc Currency

The Swiss Franc is the official currency of Switzerland and Liechtenstein. Switzerland has a banking code that makes the account holder of any Swiss bank a secretive entity.

Due to this reason, the Swiss Bank has become a haven for the world’s richest to park their money in the bank. Many rich people park their money in a Swiss bank to evade taxes by their respective Governments.

Swiss economy does not have any inflation or very low inflation making the Franc an ideal currency to safeguard the money.

Every during the pandemic, the Swiss Economy just registered an inflation rate of ~1.6% which is the lowest in the world.

So, in comparison if you were to keep your money in INR with an inflation rate of 4%, your wealth would decrease by 4% however, if you keep your money in Swiss Franc then with inflation of 0%, your wealth would remain still.

The Swiss currency pegged the franc against the euro when it joined the European Union, opting for a dual system rather than choosing to abolish the franc.

EUR- Euro

European Currency

Euro is yet another highly demanded currency which is the official currency of the member state of Europe.

Europe is a continent that fell in the geographical northeast from the prime meridian. This continent is home to 27 of the most influential state and political unions known as the Europe Union.

The Euro is used in 19 of the 27 member states which is the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

It is the second largest reserve currency after the US Dollar. It is also the second most traded currency in the world.

USD- United States Dollar

United States of America Currency

United States Dollar is one of the most valuable currencies in the world and this is due to its status being the world’s reserve currency.

Every country in the world does trade in the US dollar making it the most demandable currency in the world.

It is backed by the world’s largest economy, i.e., the US economy. The US is an economic giant with supreme military power which enforces the strength and trust of the people in the USA.

The USA has a monopoly when it comes to global trade and every country in the world parks their traded dollars in the US Banks to earn interest.

This money which is parked in the bank would allow the US Fed to provide loans to companies with a low-interest rate and helps the US economy to get financially boosted.

FAQ

Does strong currency mean a good economy?

Not necessarily, a strong currency does not always mean a good economy. The economy is best measured in GDP, the gross domestic product. It means the production that you have as a whole in a financial year directly translated to a good economy.
The production always matches the demand and supply principles and the overall economy would be good. All of these factors contribute to the increased export of the country hence, making the currency strong. A strong currency viz-a-viz exports are concern does not help due to decreasing in the purchasing power of the importing country with respect to your currency hence, strong currency does not always mean a good economy.  

What determines the strength of the currency?

Various factors determined the strength of the currency like the demand for the currency in the Forex Market, exports, GDP, Central bank Policy, Inflation, etc.

Why do developing countries purposely devalue their currency?

Developing countries purposely devalue their currency to increase the exports of the country and reduce the value of their goods in currency terms and make it attractive for global importers.  

What is petro-dollar?

In the year 1973, the US and Saudi Arabia penned an agreement wherein the US would provide security to the Saudis in return the Saudis would export their oil only for US Dollars. Saudi Arabia imports a lot of US weapons and equipment which leads to massive trade between the countries making the foundation of the petro-dollar strong.  
With green energy and switching to the electric options, the oil market, and the petro-dollar, countries trying to move away from the US Dollar would make the entire petro-dollar agreement a slowly diminishing thing.

What if Petro-Dollar collapses?

If the petro-Dollar collapses then it would be devastating for the world, especially for the countries that are net importers of energy and goods. An import-driven economy like China, Singapore, etc would come to the brink of collapse. US inflation rate would spike and the Federal Reserve would increase the interest rate to an unprecedented level and the US economy would be severely hit.

What is the most powerful currency in the world?

When it comes to valuation, i.e. Purchasing Power, the most powerful currency in the world is Kuwaiti Dinar but, the value of the currency cannot determine how powerful the economy of the country is.

Measuring the powerful currency in terms of valuation is not advised however, if there is one currency that is by far the most powerful currency in the world then it is US Dollar. There are many reasons but the primary one is its acceptance throughout the world. Every economy in the world trade amongst each other using the USD.

All these reasons make the USD as the most powerful currency in the world.