The world's reserve and one of the most valuable currencies globally is the US Dollar - and it's trendy too! However, despite its popularity, it is not the strongest currency in the world. Few other currencies are stronger in value than the US Dollar or Pound Sterling, which may surprise you.
If you are an economist, entrepreneur, or an OFW sending money from abroad, you should at least be familiar with the world's top 5 strongest currencies as of November 2021. Dive in!
1 GBP = 1.33 USD 1 GBP = 1.69 CAD
You probably assume the British Pound Sterling to be at the top of this list of the top strongest currencies in 2021, but it is actually the fifth. Over the previous decades, the Bank of England (BOE) has largely kept up with developments in other nations, keeping the pound more valuable than the US dollar.
The British pound sterling is worth more than the US dollar, but it fell in value throughout the twentieth century. During the 1980s, there was a comeback, and the British pound reclaimed its previous edge over the US dollar.
North Ireland, Scottish, Jersey, Manx, St. Elena Island Pound, and Falkland Islands Pound issue their currency, which differs from the Bank of England. They are, however, all regarded as 1 equals 1. That is why different British pound currencies have the same value.
One British pound sterling (GBP) is worth 1.33 USD and 1.69 CAD as of the moment.
1 JOD = 1.41 USD 1 JOD = 1.80 CAD
It's worth mentioning that any country can peg its currency to the dollar at any point in time. During the 21st century's first two decades, Jordan successfully did so!
The country is not yet economically developed due to a lack of essential natural resources (such as oil). Despite that, Jordan still has a highly valued currency.
The Jordanian Dinar (JOD) has been pegged or fixed at a higher rate than the US dollar because a steady currency rate would help attract more US investment. However, Jordan's currency must maintain its value with the US dollar to sustain the peg.
JOD is the currency code for the Jordanian Dinar and is worth 1.41 US Dollars, making it on the list of the top 5 world's strongest currencies in 2021.
1 OMR = 2.60 USD 1 OMR = 3.31 CAD
A small Arabic country on the Arabian Peninsula's southeast coast, Oman generates most of its revenue from tourism and agriculture. It has a robust economy and a high standard of living for its residents. Like Jordanian Dinar, the Oman Rial has a high purchasing power because it is pegged to the US Dollar.
Because Omani authorities have generally limited the money supply to shield the country from Middle East wars and instability, this has impacted the country's inflation rate.
Oman sets its exchange rate with the US dollar at 2.60 USD.
Read our blog Why Do Currencies Fluctuate? to learn more about what makes currency strong and factors that affect currency exchange rates.
1 BHD = 2.65 USD 1 BHD = 3.29 CAD
With just over 1 million inhabitants, Bahrain is a small country in the Persian Gulf and holds the second strongest currency in the world. While Bahrain does not rank among the top ten wealthiest countries globally, it is the fifth richest Arab country and the world's 23rd largest economy.
The export of petroleum or 'black gold' is Bahrain's leading source of revenue. Despite the falling oil prices on Bahrain's economy, the Bahraini Dinar's yearly average has maintained its current exchange rate since 2011.
Bahrain's inflation rate is also moderate and consistent, thus suggesting a healthy economy. Read our blog Why Do Currencies Fluctuate? to learn more about how the inflation rate affects the country's currency.
The fact that the exchange rate between these two currencies has stayed steady since 2005 is intriguing.
In conclusion, the BHD has a fixed exchange rate with the USD, resulting in a stronger currency.
1 KWD = 3.30 USD 1 KWD = 4.21 CAD
Introducing the Kuwaiti Dinar (KWD), the king of all currencies! Unlike the other currencies mentioned in this article, the Kuwaiti Dinar is not pegged to US Dollar to move freely. So, what makes this currency the strongest?
What contributes to Kuwait's continued prosperity is their oil output that supports the Kuwaiti Dinar's value. Kuwait is well-known for its achievements in the oil business and stable economy.
The Kuwait Dinar is the only currency on this list whose country made it to the top ten richest countries in the world by GDP per capita. Kuwait also boasts a low unemployment rate and is currently one of the world's tax-free countries.
In November 2021, the Kuwaiti Dinar is the world's most valuable and strongest currency, with one Dinar worth more than three dollars.
A quick overview of the five strongest currencies in the world as of November 2021:
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