In 2024, the Tunisian Dinar (TND) stands as the strongest currency in Africa. Its value against the US dollar-ranging from approximately 3.05 to 3.13 TND per USD-places it at the top of continental currency rankings. This strength is underpinned by Tunisia’s well-managed and diversified economy, which relies on manufacturing, agriculture, tourism, and services. Many people consider the US dollar to be the strongest currency in the world, and it is indeed the most traded currency globally. The Jordanian dinar (JOD) is high up the list of the world’s strongest currencies for a combination of reasons.
The term “Currency Strength” refers to the robustness or weakness of a currency at any given moment. You’re in the right place.As the costs of living increase, and rising interest rates push up mortgage repayments for many… If you’re planning a holiday or business trip, you’ll need to work out the cost of spending in a different currency.Many people these days choose to spend on…
Insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX business. Prerna Surana is a Finance Content Writer with over three years of experience at Bank Bazaar. She specialises in creating insightful content on Credit Cards, Debit Cards, Taxes, and other BFSI products. Beyond finance, Prerna also writes about non-financial utility products such as Aadhar Card, Voter ID, and Government Certificates. Having worked in investment banking for over 20 years, she has turned her skills and experience to writing about all areas of personal finance.
As one of the world’s oldest currencies, it plays a significant role in the global economy. It accounts for an average volume of nearly US$422 billionper day thereby making it the fourth most traded currency globally. It alsoranks as the fourth largest reserve currency, accounting for 4.5% of theworld’s reserves in terms of value. The performance of the UK economy has amajor influence on the value of the pound. The Bank of England’s (BoE’s)monetary policies, employment reports, inflation rate statistics, grossdomestic product (GDP) are some factors that potentially impact the pound’svalue. Almost 60% of global foreign exchange reserves are made up of US dollars, thanks to historical agreements like Bretton Woods.
Increasingly significant in global trade, accounting for about 4-7% of transactions. The second most traded currency, representing approximately 30% of daily trading volume. The question of preference depends entirely on a trader’s goals, risk tolerance and expertise. Some of the following features are advantages of trading smaller currencies, like higher volatility. This greater price fluctuation can provide more opportunities for larger profits, if a trade is executed effectively.
A currency can climb in global rankings for various reasons, including low inflation, a robust economy, favorable interest rates, or significant exports of oil and gas. In the global economy, currencies are crucial as they represent the power and stability of the nations where they are used. They not only facilitate global trade and finance but also reflect a country’s economic health and governance.
Top 15 Most Used And Traded Currencies in The World 2024
She’s fond of venturing into the unknown and counts finance, entertainment, and fashion as her top interest areas. However, it might make the country less attractive to tourists from countries with weaker currencies. Tourists benefit from stronger currencies, as they can get more value for their money when travelling abroad. When inflation is low, the currency’s value remains steady, or even appreciates, relative to other currencies. Its strength is backed by the economic power of the United States, which boasts the largest GDP in the world. The Cayman Islands Dollar is a reflection of the country’s status as a major offshore financial centre.
Guide to Europe (EU)
The Venezuelan Bolívar and the Iranian Rial are considered among the weakest currencies globally. This is due to the countries’ struggling economies, high inflation rates, and political instability. Many investors regard the Swiss franc (CHF) as a safe-haven asset and believe it to be the safest currency globally. This reputation stems from Switzerland’s strong monetary policy, low debt levels, and its neutral stance in global conflicts. Consider trading currency pairs such as USD/CHF, EUR/CHF, and GBP/CHF, which include the Swiss franc. The Omani rial (OMR) is the official currency of the Sultanate of Oman, located in the Middle East.
Currencies from stable economies, like the USD or EUR, experience less volatility overall. Predictability is a key factor when converting currencies, and particularly their reliability in times of economic uncertainty. There are several factors that go into a preferred currency that enhance profitability, reduce risk and improve overall efficiency when trading.
The currency is highly regarded as one of the most expensive and best currencies globally. The Kuwaiti dinar’s stability is supported by its backing by a diverse basket of foreign currencies, rather than being solely pegged to the US dollar. Although the exact proportion of the US dollar in this basket is unknown, it is substantial due to Kuwait’s heavy reliance on oil, priced in US dollars. This makes the Kuwaiti dinar highly stable for international transactions, though its banknotes are rarely used outside Kuwait.Kuwaiti Dinar (KWD) – Strongest Currencies in the World.
- The Jordanian dinar (JOD) is high up the list of the world’s strongest currencies for a combination of reasons.
- 54% of global trade uses the dollar, extending even to transactions which do not involve US companies.
- The Dollar’s global dominance in trade and finance, coupled with the stability of the US economy, ensures its continued strength.
- The Swiss Franc is known for its stability and is often considered a safe-haven currency.
- The Euro is the second most widely used currency in the world, and it is commonly used in international trade and finance.
Inflation rates
- Here are some other currencies that didn’t quite make the top 10 but are still considered strong global currencies.
- Furthermore, it is the second-largest reservecurrency in the world, accounting for about 20% of worldwide reserves in termsof volume.
- Switzerland is a landlocked country, which borders France, Germany, Italy, Austria, and Liechtenstein.
- High debt levels can lead to concerns about a country’s ability to meet its obligations, which can weaken its currency.
- The UnitedStates has the largest economy in the world and serves as a global tradepowerhouse.
All of these factors have contributed to the stability and resilience of the Kuwaiti dinar. But to put it simply, a ‘strong currency’ is when a currency is worth more than another country’s currency. ‘Currency strength’ refers to how strong or weak a currency is at any given time. In this guide, we’ll run through the top 10 list of the strongest currencies in the world right now, we’ll even include some honourable mentions that didn’t quite make the top 10. The US dollar makes up a significant part of the global transactions in the SWIFT payment system.
Top Strongest Currencies in the World 2025
The British pound is the fifth-strongest currency in the world, with 1 pound buying 1.22 dollars (or $1 equals 0.82 British pound). The Omani rial is the third-strongest currency in the world, with 1 rial buying 2.60 dollars (or $1 equals 0.38 Omani rial). Bahrain is an island nation in the Persian Gulf off the eastern coast of Saudi Arabia. Jordan is primarily landlocked and borders Egypt, Syria, Iraq, and Saudi Arabia. It is less dependent on oil and gas exports than its neighbors and has struggled with sluggish economic growth and rising debt. The Jordanian dinar entered circulation in 1950 and is pegged to the U.S. dollar.
Most Traded Currencies in the World – International Trading
The Atr forex Omani Rial stands as a testament to the wealth generated by Oman’s oil industry. Monero (XMR) is a peer-to-peer digital currency that emphasizes privacy and aims to be both anonymous and untraceable. Thanks to its fungibility, transactions on the Monero blockchain cannot be linked to any specific user or individual. This feature ensures that each unit of Monero is indistinguishable from another, making it a prime example of the most secure and private cryptocurrency available. Simply put, a currency is deemed “strong” if its value surpasses that of another nation’s currency.
Jordanian dinar
The strongest currency pair is the euro (EUR) and US dollar (USD),6 as it is one of the most commonly traded and both locations have large and strong economies. This is determined by the government through its central bank, and is set against another major global currency (such as USD or EUR, for example). The pound is the fifth-strongest world currency in 2024, despite the turbulence of Brexit and uncertainty surrounding ties between the UK and the EU.
The GBP is one of the oldest currencies in use today and is known for its stability and strong economy. The UK’s history as a global financial center also contributes to the widespread use of the Pound Sterling. With a daily average volume of US$117 billion, it ranks asthe ninth most traded currency in the world. The Hongkong and Shanghai Banking Corporation(HSBC), Bank of China, and Standard Chartered Bank are authorised to issue allother denominations. Between April 2016 and April 2019, HKD turnover doubled,which pushed the currency from 13th to ninth place globally.
Japanese yen came into force by the virtue of the New Currency Act in the year 1871. Investors seek stable and strong currencies to minimise the risk of their investments losing value due to currency fluctuations. These reserves can be used to stabilise the currency in times of economic uncertainty. Nations with stable political environments are seen as less risky, which supports a stronger currency.
However, monetary policy and price stability within the region is overseen by the European Central Bank (ECB). The bank has taken steps to maintain the stability and reliability of the euro, primarily by careful management of inflation. The strength of the Kuwaiti dinar (KWD) comes from the fact it is one of the largest global exporters of oil and gas in the world. It is a major exporter of agriculturalproducts like meat and dairy and its primary imports are cars, oil, andmachinery.