Strongest currencies of May 2022

By Remitbee - Jun 17, 2022

Currency is a funny thing. It's only worth what we collectively believe it to be. And yet, somehow, entire economies can rise and fall based on the whims of the market. Such was certainly the case in 2020 when the COVID-19 pandemic sent shockwaves through the global economy. In the face of such uncertainty, one might expect the world's most valuable currencies to take a hit.

Surprisingly, however, little has changed regarding the location of the world's most expensive currencies. If anything, the pandemic has highlighted these economies' relative strength. So, without further ado, here are the five strongest currencies in the world (according to data from May 2022).

5. British Pound Sterling (GBP)

Equivalence to USD = $1.23 CAD = $1.59

The British Pound Sterling is the world's fifth most powerful currency, with a conversion rate of 1 GBP = 1.23 USD. Many believe the British pound has the highest monetary value, but this is not true.

The British pound is the world's oldest currency and has a long and storied history. The British Empire expanded over the globe during the 19th century, and the GBP was an important part of that expansion. Traders refer to the GBP/USD pair as "the cable" in the forex market, and it is the third most traded currency pair behind EUR and JPY.

England, Scotland, Wales, and Northern Ireland use the pound sterling as their official currency. The British Crown Dependencies of Guernsey, Jersey, and the Isle of Man use GBP as a parallel currency. While a few British colonies, such as the Falkland Islands, Gibraltar, and Saint Helena, have their currencies with a 1:1 exchange rate.

4. Jordanian Dinar (JOD)

Equivalence to

USD = $1.41 CAD = $1.83

With a conversion rate of 1 JOD = 1.41 USD, the Jordanian Dinar, the country's currency since 1950, is placed fourth among the strongest currencies. It was initially tied to the US Dollar at a greater rate, but the government has successfully maintained this peg for the past two decades.

Jordan is an emerging market with little economic development. Thus there is no fundamental thesis to justify its high valuation. Jordan lacks natural resources such as oil and coal and has external debt. Jordan's economic development has been slowing since 2011, owing to a significant increase in population, external debt, and unemployment.

3. Omani Rial (OMR)

Equivalence to

USD = $2.60 CAD = $3.36

The Omani Rial is the world's third-highest currency. One dollar will only give you 0.39 OMR. The Saudi Rial, named after Oman's Sultanate, The House of Al Said, was introduced in 1970. The OMR has been tied to the US dollar since 1973.

Due to the great purchasing power of the Omani Rial, the government of Oman has created 1/4 and 1/2 Rial banknotes. Like the other Gulf countries in the Middle East, Oman is an oil-rich country that has developed into a developed economy with a high standard of living.

Because oil supplies are rapidly dwindling, the government of Oman has moved to diversify its income from crude oil production to other industries such as metallurgy, gas development, and tourism.

2. Bahraini Dinar (BHD)

Equivalence to

USD = $2.65 CAD = $3.44

The Bahraini Dinar (BHD) ranks second on the world's most valued currencies list. With the current BHD conversion rate, you will get 0.37 BHD if you exchange one dollar. BHD stopped using the Gulf rupee as legal tender in 1965 and replaced it with the Bahraini Dinar. The BHD is tied to the US Dollar, and the exchange rate has been relatively stable and volatile since 1987.

Bahrain has a population of about 1 million people. The export of gas and petroleum products is the most crucial source of revenue for this Persian Gulf island state, just like Kuwait. Bahrain is one of the world's leading oil producers, and pearl digging was once the country's most profitable sector. However, pearl cultivation in Japan ceased production in the 1930s.

One curious fact is that the Riyal, the Saudi Arabian currency, is legally recognized as legal cash in Bahrain. The exchange rate remains steady at 1 Dinar = 10 Riyals.

1. Kuwait Dinar (KWD)

Equivalence to

USD = $3.26 CAD = $4.22

The Kuwaiti Dinar is the strongest currency in the world, ranking first. The Kuwaiti Dinar was initially issued in 1960 when Kuwait gained independence from the British Empire, and it was worth one pound at the time.

Kuwait is a small country sandwiched between Iraq and Saudi Arabia on the map. Currently, one USD will only get you 0.30 Kuwaiti Dinar. Kuwait's currency has the highest value due to its stable economy and the fact that it is an oil-rich country with 9% of the world's oil reserves on its borders.

Kuwait relies on oil exports, which account for nearly all of the country's revenue. Production of petroleum products is simple in Kuwait, and the production cost is low compared to other countries. Kuwait is a tax-free country with a relatively low unemployment rate, which is an interesting statistic!

Wrap Up

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So whether you're interested in foreign exchange for investment purposes or getting ready to travel, take advantage of our online currency exchange. You won't be disappointed!

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