For travellers or people who work overseas, knowing the current exchange rate is important. After all, currencies change regularly, and the shift in currency exchange alters the value of money they will be able to send to their families back at home.
Most people think that the US Dollar is the strongest currency due to its popularity; after all, it is the currency of one of the world's most powerful and influential countries. USD is the most traded currency and is the world’s reserve currency. But being the most popular currency does not always translate to being the strongest.
Here are the top 5 strongest currencies in the world as of September 2021, whose conversion rates are way higher than the US Dollar. If you’re curious about which countries made it to the top 5, remember that a country’s currency is strong if it is backed by valuable oil reserves and a strict monetary policy. So, a better economy does not always produce a strong currency.
The British Pound Sterling is the oldest in circulation and one of the most traded currencies in the world. For the longest time, GBP has been stronger than USD. However, Brexit has weakened this currency since 2016. Now that it has landed on the fifth place of strongest currencies in the world, it appears to be recovering from its post-Brexit losses, promising a more positive outlook for the UK economy.
1 JOD = 1.78 CAD
Jordan is a country with significant external debt. It is not yet economically developed and is short in essential resources such as oil, so people always wonder why this currency is so strong, even exceeding USD and GBP. The secret to this is because the JOD was pegged to the USD at a higher value. As the Jordanian government maintains a fixed exchange rate of JOD relative to a foreign currency such as USD, Jordan is expected to attract more US investments.
1 OMR = 3.28 CAD
Similar to JOD, the Omani Rial was pegged to the US Dollar since 1973. The primary reason why Oman can have a developed economy, strong currency, and high lifestyle quality is oil production. To diversify the country’s sources of income, gas production, metallurgy, and tourism. Due to the high value of an OMR, the government issued ¼ and ½ Rial banknotes.
1 BHD = 3.35 CAD
The Bahraini Dinar was pegged at 1 BHD to 2.65 USD since 1987. Though Bahrain has its political struggles due to the absence of agricultural industry and high unemployment rates, it's gas and petroleum products have been a great source of income. Moreover, the country is also able to improve its tourism and financial sector, further improving its economy.
1 KWD = 3.32 USD 1 KWD = 4.19 CAD
The Kuwaiti Dinar initially was equivalent to one pound sterling since its introduction in 1960 as a replacement for the Gulf rupee. In 2003, the KWD was pegged to USD at 0.29963 dinars. Four years after, the Kuwaiti government re-pegged the KWD to an undisclosed weighted currency basket.
It is estimated that Kuwait holds about 9 percent of the world’s oil reserves. Since petroleum production here is easier done, they can offer their petroleum products at a more affordable price compared to other petroleum exporters. The country has a low unemployment rate, a tax-free, and is among the top 10 countries with the highest GDP per capita.
Since currencies change now and then, it might be interesting to see if these five strongest currencies in the world as of September 2021 will be able to hold their rank.
If you are interested in foreign exchange or are travelling soon, take advantage of Remitbee’s online currency exchange. We offer competitive fees and exchange currencies for free as long as your amount is more than $10 CAD.