TEMPO.CO, Jakarta – Despite being recognized as the world’s reserve currency, the U.S. dollar is not among the most powerful on the global scale. Various factors, including inflation, interest rates, and supply, play pivotal roles in determining the values of currencies.
These strongest currencies in the world are widely acknowledged for their exceptional purchasing power, reinforcing their substantial value amid the ever-shifting global economic landscape.
5 Strongest Currencies in the World
Wise and Investopedia named Kuwaiti Dinar as the strongest currency in the world alongside a number of other Middle Eastern countries’ currencies. Read on to discover more about the other currencies.
1. Kuwaiti Dinar (KWD)
Driven by the country’s robust economic stability stemming from its vast oil reserves, the Kuwaiti dinar is the strongest currency in the world. As per January 2025, 1 KWD is valued at approximately US$3.24. Kuwait’s economic diversification and responsible budgetary policies contributed to the purchasing power of the Kuwaiti dinar.
2. Bahraini Dinar (BHD)
The growing regional financial hub, Bahrain, has a remarkably strong currency. Following the change of the year, 1 BHD is reportedly priced at US$2.65 due to several factors. Much like other Middle Eastern countries, the Bahraini dinar’s profound power relies heavily on the country’s exports of oil and gas.
3. Omani Rial (OMR)
Situated on the Arabian peninsula, just between the UAE and Yemen, Oman is considered a wealthy country with stunning dunes and desert plants. The country’s involvement in global oil and gas supplies has resulted in a strong Omani rial. Today, 1 OMR is pegged to the U.S. dollar at a rate of $2.60.
4. Jordanian Dinar (JOD)
It is quite interesting that another Middle Eastern country, Jordan, takes the fourth position as one of the strongest currencies in the world today. Slightly different from its neighboring nations, the Jordanian dinar’s strength is supported by the government’s dedication to price stability and exchange rate flexibility. As a result, 1 Jordanian dinar is now worth US$1.41.
5. British Pound (GBP)
As the oldest currency still in use today, the British Pound has a long history of its strong buying power. The country’s diversified economic ventures and solid financial service sectors become one of the major nudges on the UK’s steady currency performance. Thanks to its hefty Gross Domestic Product (GDP), 1 GBP stands at US$1.23 against the US dollar.
The dominance of Middle Eastern currencies on this list highlights the significant role of oil-rich economies in maintaining high exchange rates, while the British Pound’s enduring value showcases the power of diversification.
As global markets continue to shift, these strongest currencies in the world remain the benchmarks of economic stability, reinforcing their influence in international trade and finance.
When it comes to the discussion of currencies, there are also struggling nations that have the weakest currencies in the world, which may signal a range of economic difficulties.
WISE | INVESTOPEDIA
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