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Written by Nathalie Okde
Updated 5 June 2025
The strongest currency in the world refers to the one with the highest buying power compared to all other currencies. In simple terms, a strong currency can purchase more than a weaker one. But strength doesn't always reflect economic power, some of the highest-valued currencies come from smaller economies.
So, which currency is the highest in the world today? Below, you'll find the top 35 highest currencies in the world in 2025, ranked by their exchange rate against the U.S. dollar.
Exchange rates between two currencies determine currency strength.
Kuwaiti Dinar (KWD) is the strongest currency in the world due to oil wealth.
The Iranian Rial is the weakest currency in the world due to political instability and imposed sanctions.
Currency strength is affected by interest rates, inflation rates, and economic stability.
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Below is the list of the currency ranking table as per USD (Rank, Currency, Country, Symbol, Exchange Rate and Key Factors) of the top 35 strongest currencies in the world as of 5th June 2025.
Rank
Currency
Symbol
Exchange Rate (USD)
Key Factors
1
Kuwaiti Dinar
KWD
3.27
Oil wealth, low inflation, strong sovereign reserves
2
Bahraini Dinar
BHD
2.65
Oil exports, financial hub, economic diversification
3
Omani Rial
OMR
2.60
Oil reserves, fiscal discipline, diversification efforts
4
Jordanian Dinar
JOD
1.41
Political stability, strategic location, diversified sectors
5
British Pound Sterling
GBP
1.36
Strong economy, global financial hub, monetary policy
6
Gibraltar Pound
GIP
1.35
Pegged to GBP, stable economy, financial services
7
Falkland Islands Pound
FKP
Pegged to GBP, UK financial backing, tourism
8
Cayman Islands Dollar
KYD
1.20
Offshore finance center, tax haven, USD peg
9
Swiss Franc
CHF
1.22
Safe haven, low inflation, banking secrecy
10
Euro
EUR
1.14
Eurozone strength, ECB policy, diversified economies
11
United States Dollar
USD
1.00
World reserve currency, US economy strength
12
Singapore Dollar
SGD
0.78
Global finance hub, managed float system
13
Brunei Dollar
BND
Oil wealth, small population, SGD peg
14
Canadian Dollar
CAD
0.73
Natural resources, trade with US, banking stability
15
Australian Dollar
AUD
0.65
Commodities exporter, Asia-Pacific trade links
16
Azerbaijani Manat
AZN
0.59
Oil & gas wealth, slow diversification
17
New Zealand Dollar
NZD
0.60
Agricultural exports, stable politics
18
Aruban Florin
AWG
0.55
USD peg, tourism-driven economy
19
Bulgarian Lev
BGN
0.58
Euro peg, strong IT and outsourcing sectors
20
Bosnia & Herzegovina Convertible Mark
BAM
Euro peg, steady growth, energy exports
21
Belize Dollar
BZD
0.50
USD peg, tourism and agriculture
22
Barbadian Dollar
BBD
USD peg, tourism and financial services
23
Fijian Dollar
FJD
0.44
Tourism, sugar exports, floating exchange rate
24
Tongan Paʻanga
TOP
0.41
Remittances, tourism, agriculture
25
Georgian Lari
GEL
0.36
Tourism, agriculture, wine exports
26
East Caribbean Dollar
XCD
0.37
USD peg, used across 8 countries
27
Qatari Riyal
QAR
0.27
Gas wealth, USD peg, low inflation
28
Saudi Riyal
SAR
Oil exports, Vision 2030 diversification
29
UAE Dirham
AED
Oil and gas, tourism, investment
30
Malaysian Ringgit
MYR
0.24
Manufacturing, electronics, palm oil
31
Chinese Yuan Renminbi
CNY
0.14
World’s 2nd largest economy, trade surplus
32
South African Rand
ZAR
0.056
Commodity exporter, volatile politics
33
Mexican Peso
MXN
0.05
Trade with US, remittances, tourism
34
Thai Baht
THB
0.031
Export economy, tourism, floating rate
35
Turkish Lira
TRY
0.025
Economic crisis, inflation, weak monetary policy
Exchange Rate (GBP)
2.41
1.95
1.92
1.04
0.89
0.90
0.84
0.74
0.57
0.54
0.48
0.43
0.45
0.33
0.30
0.21
0.20
0.17
0.10
0.042
0.038
0.023
0.019
280.25
227.65
223.21
121.05
116.48
116.47
116.46
102.98
104.72
98.04
85.82
66.81
66.80
62.82
55.87
50.48
51.91
47.61
50.08
50.12
42.72
42.50
38.23
35.64
31.27
31.76
23.54
22.88
23.35
20.28
11.95
4.84
4.47
2.64
2.18
Below is the highest currency in the world list as per USD, 5th June 2025:
Kuwaiti Dinar (KWD)
Bahraini Dinar (BHD)
Omani Rial (OMR)
Jordanian Dinar (JOD)
British Pound Sterling (GBP)
Gibraltar Pound (GIP)
Falkland Islands Pound (FKP)
Cayman Islands Dollar (KYD)
Swiss Franc (CHF)
Euro (EUR)
United States Dollar (USD)
Singapore Dollar (SGD)
Brunei Dollar (BND)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Azerbaijani Manat (AZN)
New Zealand Dollar (NZD)
Aruban Florin (AWG)
Bulgarian Lev (BGN)
Bosnia and Herzegovina convertible mark (BAM)
Belize dollar (BZD)
Barbadian dollar (BBD)
Fijian Dollar (FJD)
Tongan pa’anga (TOP)
Georgian lari (GEL)
East Caribbean dollar (XCD)
Qatari Riyal (QAR)
Saudi Riyal (SAR)
United Arab Emirates Dirham (AED)
Malaysian Ringgit (MYR)
Chinese Yuan Renminbi (CNY)
South African Rand (ZAR)
Mexican Peso (MXN)
Thai Baht (THB)
Turkish Lira (TRY)
Source: Wikipedia
The Kuwaiti Dinar is currently the world's strongest currency.
USD/KWD Rate Comparison (5th June 2025)
1 KWD = 3.27 USD
1 USD = 0.30 KWD
The main reason behind this strength is Kuwait’s oil industry, which plays a massive role in fueling the economy. Kuwait sits on one of the largest oil reserves in the world, and with such a small population, the country has a higher per capita income that helps keep the dinar strong.
The Bahraini Dinar is another top performer among world currencies, thanks to its strong financial sector and oil exports. It is the 2nd highest currency in the world.
USD/BHD Rate Comparison (5th June 2025)
1 BHD = 2.65 USD
1 USD = 0.37 BHD
Bahrain has strategically positioned itself as a financial hub in the Gulf region, attracting significant foreign investment, making the Bahraini Dinar the second highest currency in the world.
Beyond oil, Bahrain’s diversified economy, with banking, tourism, and finance playing key roles, helps maintain the dinar’s strength. The country’s political stability and well-thought-out economic policies also contribute to the high value of the Bahraini Dinar, making it one of the strongest currencies globally.
The Omani Rial benefits from Oman’s substantial oil exports and prudent fiscal policies. It is the 3rd strongest currency in the world in 2025.
USD/OMR Rate Comparison (5th June 2025) :
1 OMR = 2.60 USD
1 USD = 0.38 OMR
While oil continues to be a cornerstone of Oman’s economy, the government has made significant strides in diversifying its economic base.
Sectors such as tourism, logistics, fisheries, and manufacturing are becoming increasingly important as part of Oman’s long-term plan to reduce its dependency on oil.
The Jordanian Dinar might not come from an oil-rich country, but it’s still one of the highest or strongest currencies in Africa and globally.
USD/JOD Rate Comparison (5th June 2025)
1 JOD = 1.41 USD
1 USD = 0.70 JOD
Jordan has built its currency’s strength through a combination of strategic geographic location and political stability. It sits at the crossroads of Asia, Europe, and Africa, Jordan’s location makes it an attractive hub for trade and logistics, drawing foreign investment and international aid.
The British Pound, one of the oldest currencies in the world, remains strong due to the United Kingdom’s diversified and advanced economy.
USD/GBP Rate Comparison (5th June 2025)
1 GBP = 1.36 USD
1 USD = 0.73 GBP
The UK is home to one of the largest and most influential financial hubs, London, which plays a pivotal role in maintaining the pound’s value.
Despite recent challenges like Brexit, the UK's financial services, education, and manufacturing sectors continue supporting the Pound’s value.
Moreover, the pound's significance in global finance, especially in foreign exchange markets, makes it a widely traded currency.
The Gibraltar Pound pegged at par with the British Pound, derives its strength from Gibraltar’s stable economy.
USD/GIP Rate Comparison (5th June 2025)
1 GIP = 1.35 USD
1 USD = 0.74 GIP
Although Gibraltar is a small British Overseas Territory located on the southern tip of Spain, its currency holds significant value thanks to Gibraltar’s stable economy. The GIP is primarily used in Gibraltar, though British Pounds are also accepted.
Gibraltar’s status as a significant financial center, coupled with its strategic location at the entrance to the Mediterranean, contributes to the GIP's stability and value.
Source: Leftover Currency
The Falkland Islands Pound (FKP) is the official currency of the Falkland Islands, a British Overseas Territory located in the South Atlantic Ocean. Its exchange rate is pegged at par with the British Pound Sterling (GBP).
USD/FKP Rate Comparison (5th June 2025)
1 FKP = 1.35 USD
1 USD = 0.74 FKP
Like the British Pound, the FKP is a strong currency, benefiting from the UK's stable economy and long-standing financial strength. The Falkland Islands issue their own coins and banknotes, but British Pounds are also widely accepted on the islands.
The Falkland Islands' economy is relatively small and relies primarily on fisheries, tourism, and agriculture. The strength of the FKP is indirectly tied to the health of the British economy, as the Falkland Islands depend heavily on imports from the UK.
The Cayman Islands Dollar is strong due to the island's status as a significant offshore financial center.
USD/KYD Rate Comparison (5th June 2025)
1 KYD = 1.20 USD
1 USD = 0.83 KYD
The territory’s favorable tax policies attract a plethora of banks and hedge funds, which helps maintain the high value of the KYD against other currencies.
Aside from finance, tourism is also a key contributor to the Cayman Islands' economy. The territory is a popular destination for tourists, particularly from the United States, and the stable value of the KYD makes it a strong and reliable currency for both tourists and investors.
The Swiss Franc is known for its stability and safety and is often seen as a "safe haven" currency. It is undoubtedly one of the highest currencies in the world.
USD/CHF Rate Comparison (5th June 2025)
1 CHF = 1.22 USD
1 USD = 0.81 CHF
Switzerland’s economy is characterized by low inflation, low unemployment, and high GDP per capita, which all contribute to the franc’s reliability.
Switzerland’s strong economy, political neutrality, and highly developed banking sector ensure that the Franc remains a preferred currency for investors looking for security during uncertain times.
The Euro, used by 19 of the European Union’s member countries, is one of the world’s major currencies.
USD/EUR Rate Comparison (5th June 2025)
1 EUR = 1.14 USD
1 USD = 0.87 EUR
The economic strength of the Eurozone, which includes powerhouses like Germany and France, underpins the value of the Euro. Its wide acceptance and use in international trade also fuels its strength.
The Euro’s value is underpinned by the collective economic power of the Eurozone, which benefits from highly industrialized and diversified economies.
The United States Dollar is the most widely used currency in the world, benefiting from the vast and diverse US economy. It is definitely one of the all-time strongest currencies in the world.
USD vs Major Global Currencies (5th June 2025)
1 USD = 0.87 EUR (Euro)
1 USD = 143.58 JPY (Japanese Yen)
1 USD = 0.74 GBP (British Pound)
1 USD = 85.82 INR (Indian Rupee)
1 USD = 17.73 ZAR (South African Rand)
1 USD = 1.53 AUD (Australian Dollar)
1 USD = 7.18 CNY (Chinese Yuan)
As the primary reserve currency governments and institutions hold globally, the USD is pivotal in international trade and finance, ensuring its strength and stability.
The US economy, being the largest in the world, drives demand for the dollar, which is used to price many key commodities, including oil and gold.
The strength of the US Dollar is supported by the US Federal Reserve’s monetary policy and the country's vast, diverse economy. The US Dollar dominates global trade and finance, with over 60% of foreign reserves held in USD by central banks.
Its stability, liquidity, and trustworthiness make it the preferred currency for international transactions and investments.
The Singapore Dollar is strong due to Singapore’s economy and status as a global financial hub.
USD/SGD Rate Comparison (5th June 2025)
1 SGD = 0.78 USD
1 USD = 1.28 SGD
The country’s strategic location, stable political environment, and sound economic policies contribute to the SGD’s strength, making it a favored currency in Asia.
The Monetary Authority of Singapore (MAS) employs a unique approach to managing the currency, using a managed float system to ensure stability and avoid extreme fluctuations. This careful oversight, combined with Singapore’s strong fundamentals, keeps the Singapore Dollar consistently strong.
The Brunei Dollar benefits from Brunei’s wealth in oil and gas reserves. \
USD/BND Rate Comparison (5th June 2025)
1 BND = 0.78 USD
1 USD = 1.28 BND
The small population and the government’s substantial investment income help maintain the BND's high value. It’s also pegged to the Singapore Dollar, adding to its stability.
The Canadian Dollar is bolstered by Canada’s rich natural resources, especially oil.
USD/CAD Rate Comparison (5th June 2025)
1 CAD = 0.73 USD
1 USD = 1.36 CAD
Canada is one of the largest exporters of oil, and the strength of its dollar often correlates with global oil prices. The country’s strong banking system and stable political environment also support the value of the CAD.
In addition to natural resources, Canada maintains strong trade ties with the United States, and the CAD is frequently traded on global markets.
The Australian Dollar is supported by Australia’s rich natural resources, including minerals and agricultural products.
USD/AUD Rate Comparison (5th June 2025)
1 AUD = 0.65 USD
1 USD = 1.53 AUD
These resources make Australia a key exporter in global markets, particularly to countries like China, which is one of Australia’s largest trading partners.
The AUD is one of the most traded currencies in the world, benefiting from the stability of Australia’s economy and its strong trade relationships.
Australia’s stable economy and sound fiscal policies also contribute to the strength of the AUD.
The Azerbaijan Manat (AZN) is the official currency of Azerbaijan, with AZN/USD exchange rates fluctuating based on global oil prices and economic conditions.
USD/AZN Rate Comparison (5th June 2025)
1 AZN = 0.59 USD
1 USD = 1.69 AZN
The country’s wealth is largely derived from its vast oil and natural gas reserves, making its economy highly energy-dependent. However, Azerbaijan has been actively diversifying into agriculture, tourism, and technology to strengthen economic stability.
The New Zealand Dollar gains strength from the country’s stable economy and significant agricultural exports.
USD/NZD Rate Comparison (5th June 2025)
1 NZD = 0.60 USD
1 USD = 1.66 NZD
New Zealand’s political stability and attractive investment environment also maintain the NZD's value.
The Aruban Florin (AWG) is the official currency of Aruba, a small Caribbean island and constituent country of the Kingdom of the Netherlands.
USD/AWG Rate Comparison (5th June 2025)
1 AWG = 0.55 USD
1 USD = 1.81 AWG
The Aruban Florin is pegged to the US Dollaroffering stability for the island’s economy, which heavily depends on tourism from the United States.
Aruba’s central bank carefully manages the peg, ensuring that the florin remains relatively stable compared to fluctuations in global markets.
The Bulgarian Lev (BGN) is a stable currency, pegged to the Euro at a fixed exchange rate, ensuring economic stability. Bulgaria’s economy is diverse, with strong sectors in agriculture, manufacturing, and tourism.
USD/BGN Rate Comparison (5th June 2025)
1 BGN = 0.58 USD
1 USD = 1.72 BGN
The country is also a key player in the European IT and outsourcing industries, contributing to steady economic growth.
Source: Foreign Currency
The Bosnia and Herzegovina Convertible Mark (BAM) is the official currency of Bosnia and Herzegovina.
USD/BAM Rate Comparison (5th June 2025)
1 BAM = 0.58 USD
1 USD = 1.72 BAM
The currency was introduced in 1998 to replace the Bosnia and Herzegovina dinar and Croatian kuna, providing a unified monetary system in the country.
Source: Belize Hub
The Belize Dollar (BZD) is the official currency of Belize, a small Central American country. It has been pegged to the US dollar at a fixed rate since 1978, ensuring stability in trade and foreign exchange.
USD/BZD Rate Comparison (5th June 2025)
1 BZD = 0.50 USD
1 USD = 2 BZD
Belize's economy depends heavily on tourism, agriculture, and offshore banking. The country’s barrier reef, the second-largest in the world, attracts thousands of visitors each year, contributing significantly to foreign exchange earnings.
Source: Totally Barbados
The Barbadian Dollar (BBD) is the currency of Barbados, an island nation in the Caribbean. It has been pegged to the US dollar at a rate since 1975, ensuring economic stability.
USD/BBD Rate Comparison (5th June 2025)
1 BBD = 0.50 USD
1 USD = 2 BBD
Barbados' economy is built on tourism, financial services, and sugar production. The island is a major luxury travel destination, attracting visitors with its beaches, rum distilleries, and cultural heritage.
The Fijian Dollar (FJD) is the official currency of Fiji, an island nation in the South Pacific. The currency is free-floating, with exchange rates fluctuating based on market conditions.
USD/FJD Rate Comparison (5th June 2025)
1 FJD = 0.44 USD
1 USD = 2.27 FJD
Fiji’s economy is heavily dependent on tourism, agriculture, and sugar exports.
The country’s tropical climate, beautiful beaches, and coral reefs make it a favorite destination for travelers worldwide.
The Tongan Pa’anga (TOP) is the currency of Tonga, a Polynesian kingdom in the South Pacific.
USD/TOP Rate Comparison (5th June 2025)
1 TOP = 0.41 USD
1 USD = 2.43 TOP
Tonga’s economy relies on agriculture, remittances from overseas Tongans, and tourism. Many Tongan families depend on income sent from relatives working in New Zealand, Australia, and the United States.
The Georgian Lari (GEL) is the official currency of Georgia, a country in the Caucasus region. The lari is a floating currency, with its value fluctuating based on market demand.
USD/GEL Rate Comparison (5th June 2025)
1 GEL = 0.36 USD
1 USD = 2.77 GEL
Georgia’s economy is rapidly developing, with sectors such as tourism, agriculture, and wine production playing key roles.
The country is known for its favorable business environment, attracting international investments.
Source: My Pivots
The East Caribbean Dollar (XCD) is the official currency used by eight countries in the Eastern Caribbean.
USD/XCD Rate Comparison (5th June 2025)
1 XCD = 0.37 USD
1 USD = 2.70 XCD
The region’s economy is heavily dependent on tourism, agriculture, and offshore banking. Many islands also rely on financial aid and investment from larger nations.
The Qatari Riyal is one of the world’s strongest currencies.
USD/QAR Rate Comparison (5th June 2025)
1 QAR = 0.27 USD
1 USD = 3.70 QAR
This fixed exchange rate ensures the Riyal's stability against the US Dollar, reinforcing its global strength.
Qatar's wealth stems largely from its vast reserves of natural gas, as the country holds one of the largest natural gas fields in the world. With its strategic investment in liquefied natural gas (LNG) exports, Qatar’s economy remains resilient and highly profitable.
The Saudi Riyal has been a stable and strong currency for decades.
USD/SAR Rate Comparison (5th June 2025)
1 SAR = 0.27 USD
1 USD = 3.70 SAR
Saudi Arabia’s economic strength is built on its oil reserves, as it is the largest exporter of crude oil globally. The wealth generated by this industry has allowed the kingdom to maintain a robust currency.
In recent years, Saudi Arabia has made efforts to diversify its economy through Vision 2030, reducing its reliance on oil by investing in sectors like tourism, entertainment, and renewable energy.
The UAE Dirham is one of the strongest currencies in the world.
USD/AED Rate Comparison (5th June 2025)
1 AED = 0.27 USD
1 USD = 3.70 AED
The UAE’s wealth comes primarily from its oil and natural gas reserves, but its strategic diversification efforts, particularly in tourism, real estate, and finance, have made the economy more robust.
Iconic cities like Dubai and Abu Dhabi attract millions of visitors and significant foreign investments, keeping the Dirham steady.
The Malaysian Ringgit (MYR) is the official currency of Malaysia. It is a free-floating currency regulated by Bank Negara Malaysia, the country’s central bank.
USD/MYR Rate Comparison (5th June 2025)
1 MYR = 0.24 USD
1 USD = 4.16 MYR
The Ringgit was introduced in 1967 to replace the Malaya and British Borneo dollar and has since become a key symbol of Malaysia’s financial identity.
Malaysia has a diverse and growing economy driven by manufacturing, palm oil production, petroleum, and a robust services sector.
The country is also a major exporter of electronics and semiconductors. Currency stability is supported by prudent fiscal management and a relatively strong external sector.
Source: Currency Transfer
The Chinese Yuan Renminbi (CNY) is the official currency of the People’s Republic of China. The term "Renminbi" means "people's currency," while "Yuan" is the unit of account.
USD/CNY Rate Comparison (5th June 2025)
1 CNY = 0.14 USD
1 USD = 7.14
Managed by the People’s Bank of China, the CNY operates under a managed floating exchange rate system, with the currency tightly monitored and adjusted in response to global and domestic factors.
China is the world’s second-largest economy, with strong industrial, technological, and export-oriented sectors.
The South African Rand (ZAR) is the official currency of South Africa. Introduced in 1961, it replaced the South African pound at a rate of 2 rand to 1 pound. The rand is regulated by the South African Reserve Bank and is subdivided into 100 cents.
USD/ZAR Rate Comparison (5th June 2025)
1 ZAR = 0.056 USD
1 USD = 17.85 ZAR
Its value has seen notable fluctuations over time, largely driven by shifting political dynamics and economic developments.
The Mexican Peso (MXN) is the official currency of Mexico. It is a free-floating currency regulated by the Bank of Mexico.
USD/MXN Rate Comparison (5th June 2025)
1 MXN = 0.05 USD
1 USD = 20 MXN
The peso has a history dating back to the Spanish dollar and has undergone various transformations over the centuries. It is one of the most traded currencies in the world, reflecting Mexico's significant role in international trade.
The Thai Baht (THB) is the official currency of Thailand. It is a free-floating currency regulated by the Bank of Thailand. The baht is subdivided into 100 satang.
USD/THB Rate Comparison (5th June 2025)
1 THB = 0.031 USD
1 USD = 32.25 THB
Historically, the baht was based on a unit of mass, with its value originally tied to silver.
The Turkish Lira (TRY) is the official currency of Turkey and the Turkish Republic of Northern Cyprus. It is a free-floating currency regulated by the Central Bank of the Republic of Turkey.
USD/TRY Rate Comparison (5th June 2025)
1 TRY = 0.025 USD
1 USD = 40 TRY
The current lira was introduced on January 1, 2005, replacing the previous lira at a rate of 1 new lira (YTL) = 1,000,000 old lira (TRL). This revaluation aimed to combat hyperinflation and simplify financial transactions.
The lira has experienced significant fluctuations, notably depreciating in value since 2008 due to various economic challenges.
Currency names often reflect a country’s history, culture, or linguistic heritage. For instance, the Dollar derives from "thaler," a silver coin used in Europe, while the Pound traces back to the weight of silver it originally represented.
The Yen means "round object" in Japanese, referencing the shape of coins. Moreover, some currencies are named after geographic or economic factors, such as the Rial in Persian Gulf countries, which relates to "royalty."
Currency names often tell the story of a nation’s economic evolution and cultural roots.
Currency strength refers to the value of one currency compared to another, often involving different types of currencies such as the US Dollar (USD), Euro (EUR), or Japanese Yen (JPY).
These are some of the major global currencies commonly used in international trade and finance. Other types of currency, like the Kuwaiti Dinar (KWD), Bahraini Dinar (BHD), or Omani Rial (OMR), are considered strong due to their high exchange rates relative to the USD.
Think of it as a measure of how much "buying power" one currency has when exchanged for another.
When we say a currency is strong, it means that it can buy more of another currency, giving it more purchasing power. However, a weak currency buys less of another currency, which can lead to higher import costs and reduced buying power internationally.
Understanding currency names and the names of foreign currencies is essential for traders and investors dealing with money from around the world.
Several factors affect currency strength, including economic stability, interest rates, inflation rates, and political stability.
Exchange Rate vs. Purchasing Power: A strong currency isn't just about having a high exchange rate. True strength also accounts for purchasing power parity (PPP), which reflects what a unit of currency can buy in its home country.
Economic Stability: A strong economy often leads to a strong currency, as investors trust that the currency will maintain or increase its value over time.
Kuwait’s economic stability, largely derived from its vast oil reserves, helps maintain the Kuwaiti Dinar as the strongest currency globally.
Interest Rates: Countries with higher interest rates tend to attract foreign investment, increasing demand for their currency.
For example, the Bahraini Dinar benefits from a stable monetary policy that keeps interest rates competitive, attracting foreign investors to the region.
Inflation Rates: Lower inflation rates typically boost currency strength, as purchasing power remains stable over time.
For example, Switzerland's low inflation rate has consistently supported the strength of the Swiss Franc, making it one of the most stable and preferred currencies during global economic uncertainty.
Political Stability: Stable governments foster investor confidence, making the currency more attractive and thereby increasing its value.
For example, Switzerland and Oman both benefit from stable political environments, which, in turn, protect the value of their respective currencies, the Swiss Franc (CHF) and Omani Rial (OMR).
On the other hand, Iran suffers from major political instability and imposed sanctions making it the weakest currency in the world.
Government Policy and Central Bank Strategy: A central bank’s credibility and proactive monetary policy can significantly influence investor confidence and currency demand.
Region
Dominant Currency
Factors
Middle East
KWD, BHD, OMR
Oil-rich, fixed pegs to USD
Europe
EUR, CHF, GBP
High trade volume, economic diversity
North America
USD, KYD, CAD
Reserve power, trade-driven economies
Asia-Pacific
SGD, AUD
Rising influence, stable governance
A high nominal exchange rate does not necessarily equate to a currency's global economic influence. While the Kuwaiti Dinar (KWD) boasts one of the highest values against the U.S. dollar, it does not hold a dominant position in international finance. In contrast, the U.S. Dollar (USD) and the Euro (EUR), despite lower nominal values, are extensively utilized in global trade, finance, and as reserve currencies.
Value (USD)
Global Usage
Inflation Rate
Reserve Status
3.26
Low
2.1%
No
U.S. Dollar (USD)
High
2.5%
Yes
1.07
2.2%
1.05
Medium
1.5%
Money comes in various forms, serving as a medium of exchange, a store of value, and a unit of account.
The different types of money in the world can be classified as follows:
Fiat Money: The most common type today, issued by governments and not backed by commodities. Examples include the currencies mentioned in this article such as US Dollar (USD) and Euro (EUR).
Commodity Money: Historically tied to the value of physical goods like gold or silver, it holds intrinsic value.
Cryptocurrency: Digital, decentralized currencies like Bitcoin (BTC) and Ethereum (ETH) that use blockchain technology.
Representative Money: A form of money backed by a commodity, such as paper notes representing gold reserves, used in the past.
Digital Money: Includes electronic forms of fiat money, such as online banking and digital payment systems.
The Kuwaiti Dinar (KWD) is the highest-valued currency in the world, as of 5th June 2025, with an exchange rate of approximately 1 KWD = 3.26 USD (varies slightly). Its strength is due to Kuwait's wealth from vast oil reserves and a strong, stable economy.
The Bahraini Dinar (BHD), BHD/USD = 2.65, is the second strongest currency in the world as of 5th June 2025, with a high exchange rate backed by Bahrain's oil and financial sectors.
The Omani Rial (OMR) is the third strongest currency globally as of 5th June 2025, with its value supported by Oman’s oil wealth and exchange rate of OMR/USD = 2.60. The strong economic fundamentals of the country contribute to its high currency valuation.
The Swiss Franc (CHF), with CHF/USD = 1.22, is considered the safest currency in the world due to Switzerland's stable economy, low inflation, and strong financial system. It is widely regarded as a safe haven during economic uncertainty.
The weakest currency in the world is the Iranian Rial with IRR/USD = 0.000024, 5th June 2025. Iran's currency struggles are due to severe economic sanctions, high inflation, and political instability.
For a comprehensive weakest currencies in the world, check out this detailed guide highlighting the global currencies with the lowest value in 2025.
The top 10 highest currencies in the world, as per USD, 5th June 2025, are:
The top 20 highest currencies in the world, as per USD, 5th June 2025, include:
The top 30 highest currencies in the world, as per USD, 5th June 2025.
The top 50 highest currencies in the world, as per USD, 5th June 2025
Indonesian Rupiah (IDR)
Philippine Peso (PHP)
Egyptian Pound (EGP)
Vietnamese Dong (VND)
Nigerian Naira (NGN)
Pakistani Rupee (PKR)
Bangladeshi Taka (BDT)
Sri Lankan Rupee (LKR)
Kenyan Shilling (KES)
Russian Ruble (RUB)
Chilean Peso (CLP)
Colombian Peso (COP)
Argentine Peso (ARS)
South Korean Won (KRW)
Japanese Yen (JPY)
The seven major currency pairs in the forex market are:
EUR/USD (Euro/US Dollar)
USD/JPY (US Dollar/Japanese Yen)
GBP/USD (British Pound/US Dollar)
USD/CHF (US Dollar/Swiss Franc)
AUD/USD (Australian Dollar/US Dollar)
USD/CAD (US Dollar/Canadian Dollar)
NZD/USD (New Zealand Dollar/US Dollar)
These currency pairs represent the most traded in the world, driving significant trading volume in global forex markets.
The world's strongest currencies, such as the Kuwaiti Dinar, Bahraini Dinar, and Omani Rial, play significant roles in global finance.
Solid economies, strategic financial policies, and, in many cases, substantial natural resources like oil often fuel their strength.
Understanding these currencies and the factors contributing to their strength provides valuable insights into global economic dynamics.
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The most powerful and strongest currency in the world is the Kuwaiti Dinar (KWD). Its high value is primarily due to Kuwait's vast oil reserves, which generate significant revenue.
The high value of the Kuwaiti Dinar is primarily attributed to Kuwait's substantial oil reserves and the revenue they generate. Additionally, Kuwait has a relatively small population and a well-managed economy, which helps maintain the Dinar's strong value against other currencies.
The most stable currency is the Swiss Franc (CHF). Switzerland's political neutrality, robust economy, and highly developed banking sector make the Franc a "safe haven" currency. The Swiss Franc is also considered the safest currency in the world. Investors navigate towards it during global economic uncertainties, maintaining its stability and reliability.
The most commonly traded currencies are the US Dollar (USD), the Euro (EUR), and the Japanese Yen (JPY). The US Dollar dominates global trade and finance, while the Euro is widely used across Europe and in international transactions. The Japanese Yen is also highly traded due to Japan's significant role in global trade.
Other frequently traded currencies include the British Pound (GBP), the Australian Dollar (AUD), and the Swiss Franc (CHF).
Yes, but it may evolve. Traditional currencies are likely to coexist with digital currencies, such as cryptocurrencies and Central Bank Digital Currencies (CBDCs), as technology and financial systems advance.
Several currencies are stronger than the USD in terms of exchange rate value, including the Kuwaiti Dinar (KWD), Bahraini Dinar (BHD), and Omani Rial (OMR). These currencies have higher exchange rates relative to the USD.
SEO Content Writer
Nathalie Okde is an SEO content writer with nearly two years of experience, specializing in educational finance and trading content. Nathalie combines analytical thinking with a passion for writing to make complex financial topics accessible and engaging for readers.
This written/visual material is comprised of personal opinions and ideas and may not reflect those of the Company. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. XS, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same. Our platform may not offer all the products or services mentioned.
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