May 29, 2023
By Sonakshi Kandhari
Currency has always been a source of fascination. It is a mode of payment and has been in use for 3000 years. A country’s currency is largely dependent on its economic condition; so, each country has its own currency. While you might be collecting the rarest and oldest currencies, do you know which ones are the most powerful? Keep reading to find out.
Image Source: Pexels
No, it’s not the US dollar or the euro, but the Kuwaiti dinar, which is the world’s most expensive currency. With 1 US dollar, it is possible to purchase 0.31 Kuwaiti dinar. The country’s richness can be attributed to its oil exports and reserves. Being a tax-free country also multiplies the value of its currency.
Image Source: Envanto Elements
The Bahraini dinar replaced the Gulf rupee in 1965, and presently it is pegged at 1 BHD:$2.659. It has established a stronghold because of its thriving oil and gas industry. Even the strong political system that is prevalent and the fair economic policies play a major role in making this island country’s currency the second-most valued one.
Image Source: Envanto Elements
It made it to the third position on this list for several reasons, but the main one is that it is divided into 1000 small divisions called baisa, while currencies are divided into 100. The lowered inflation rate, an orderly banking system and a reasonable debt-to-GDP ratio also contribute to its high value. One can purchase 2.6 USD with 1 Omani riyal (OMR).
Image Source: Envanto Elements
Like the other countries, it is not its oil exports that have strengthened it. This happened when it was pegged against the US dollar in 1995. The fluctuating demand and supply have no effect on this country’s currency. The country's king, Abdullah II, who is featured on Jordanian coins, has put in place policies that contribute to the welfare of the inhabitants.
Image Source: Envanto Elements
Introduced in the 1400s, the British pound is the world’s fifth strongest currency. It is possible to purchase 1.20 US $ with 1 pound. Being a free-floating currency, it is not pegged against other currencies.
Image Source: Pexels
Thriving on a dual-economy system, both the United States dollar (USD) and Cayman Islands dollar (KYD) are accepted everywhere. It was introduced in the 1970s and 1 KYD is equivalent to 1.20 US dollars.
Image Source: Envanto Elements
The world’s seventh-strongest currency is pegged against the British pound (this implies that 1 GIP is equal to 1 GBP). It is possible to buy 1.20 US dollars with 1 GIP. This currency was introduced in the 1920s. Prior to this, the Spanish real and the British pound were their official currencies.
Image Source: Envanto Elements
Introduced in 1850, initially it was on par with the Euro, but eventually it went on to become a free-floating currency. The same currency is used even in Liechtenstein. Being unaffected by inflation and government interference, it is regarded as a safe-haven currency. And besides that, it is the world’s only remaining franc; all other European countries use euros.
Image Source: Envanto Elements
After the US dollar, it is the second most important currency in the world. Sixty countries besides the ones in the European Union use this currency. The issuance of euro banknotes and coins takes place in Euro countries. The lifespan of a euro note is three years, and after that it is redundant.
Image Source: Envanto Elements
Unique for several reasons, it is the world’s most used currency, and no other currency’s value exceeds the value of the US dollar. It has been in use since the 1700s, and since then it has been an accepted mode of payment in the United States, US Territories and other sovereign nations. It is the world’s largest reserve of currency and also the most traded one.
Image Source: Pexels