world currency list with values
There is no doubt that money is the world's main driving force, it is the vehicle that manages the wheel of global trade and it is the primary measure of wealth.
Given the history, the currency has come a long way, from commodity swaps to banknotes.
The currency can be defined as a means of paying for goods and services provided within or between different countries of the world.
How to determine the value of each country's currency
Each country in the world has its own independent currency, whether banknotes or coins, and each country's currency draws its strength through several factors.
These factors include but are not limited to economic and political factors, each country's gross domestic product (GDP), and inflation rate.
The value of the currency in each country reflects the strength of this country's economy. A strong currency means a cheaper import of goods and trade at higher levels.
You might expect it to be self-evident that the big countries with a prosperous economies have more valuable and powerful currencies than others. The United States dollar and the European euro are therefore supposed to top the list of the most expensive and powerful currencies. But in fact, this assumption is completely misleading, and these currencies are not even in the top five in the ranking of the world's most expensive currencies. On the contrary, some States with the most important currencies on this list are not even the world's richest countries.
It should be noted that although the United States dollar and the euro are not at the top of this list, they are the most widely used and accepted currency worldwide.
Which currencies are the highest value in the world
Since common currencies are not as high on the list as we mentioned, you might ask about the most valuable currency in the world.
In this article, we compiled a list of the 10 most expensive currencies in the world for 2022 ranked downward.
10. Canadian Dollar (CAD)
The Canadian dollar is one of the most popular currencies for central banks to hold as foreign exchange reserves, due to Canada's political and economic stability. In addition, the Canadian dollar is a very popular option when trading foreign exchange, representing about 5% of daily trading in the global foreign exchange market.
The Canadian dollar is also one of the largest reserves in the world. With large quantities of crude oil and uranium supplies, Canada has a large export economy reflected in the value of its currency, which has become among the world's strongest. Currently, the value of a Canadian dollar is about US $0.76.
9. United States Dollar (USD)
Although the United States has the world's largest economy, its currency ranks ninth in the world's most expensive currencies. The United States currency is the world's most widely traded and used currency.
It also holds the title of the core reserve currency as it is held by central and commercial banks worldwide. Since the United States dollar is the world's main reserve currency, it is therefore obvious that it is on this list, with many commodities using this unit of cash as a standard currency. such as the petrodollar system, which allows mainly oil-exporting countries to exchange the commodity in US dollars. The United States dollar has depreciated against the euro and other currencies in recent years, in part because of the explosion of the United States national debt.
8. Swiss Franc (CHF)
Investors call the Swiss franc the "safe haven currency", the national currency of Switzerland and Liechtenstein.
The Swiss franc has great value in the trading market, where it retains its value significantly and is one of the least volatile currencies if the market changes.
Switzerland is one of the world's richest countries and has a track record in banking and finance.
Switzerland also has some of the world's strictest monetary policies and lowest debt levels, leading many investors to consider the Swiss franc as a safe bet to preserve the value of their money, thus choosing to store some of their wealth in Switzerland's official currency. In addition to the above, Switzerland's banking sector - world-renowned for total confidentiality regarding depository funds - has made the national currency a safe haven for international capital.
The state tied the franc to the euro when it joined the currency union, opting for a double system rather than opting to cancel the franc which contributed to the Swiss franc's value is increased. In addition, Swiss paper coins are distinct in appearance, being the world's only vertical-looking paper coin. Currently, the value of the Swiss franc is about US $1.02.
7. European Euro (EUR)
The euro is the second largest reserve currency and the second most traded currency in the world after the US dollar, the official currency of 19 out of 28 countries. He is a member of the European Union.
Countries in which the euro is used as an official currency include Austria, Belgium, Cyprus, France, Estonia, Finland, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, and Slovenia.
The emergence of the euro was a major boom in the currency market. In 2002, euro banknotes and coins were issued to replace 12 different national currencies, leading to a significant change in the format of the most important funds in history. Currently, the value of one euro is about USD 0.99.
6. Cayman Islands Dollar (KYD)
The Cayman Islands dollar is the national currency of the Cayman Islands, an independent British territory located in the Caribbean.
This currency was introduced in 1972 and is now one of the strongest in the international market. This group of islands is known as one of the best Caribbean islands to visit and investment is encouraged.
One of the interesting things about these islands is that they are considered a safe tax haven thanks to a minimum tax on foreign investments. Furthermore, the Cayman Islands provides offshore banking services to thousands of insurance companies and financial institutions in which it invests through its tax policy.
Currently, the value of the Cayman Islands is about US $1.20.
5. Pound sterling (GBP)
Sterling is the official currency of the United Kingdom, the British Overseas Territories of South Georgia, and the British Antarctic Territory.
Sterling is the oldest currency used as it was traded in the British Empire before World War I, which spread the length and breadth of the world.
The sterling became the official currency of the United Kingdom when England and Scotland united to form a single country in 1707.
The sterling is one of the strongest currencies in the international market and one of the world's most traded currencies, accounting for about 12.8% of daily foreign exchange trades. In the foreign exchange market - the world's largest financial market - USD and GBP are the strongest financial pair of all currencies.
Currently, the value of GBP is about USD 1.15.
4. Jordanian Dinar (JOD)
The Jordanian dinar was introduced in 1950 as the official currency of the Hashemite Kingdom of Jordan to replace the Palestinian pound.
Jordan's local currency uses the method of linking to the United States dollar to refrain from the unpredictable tides of floating exchange rates.
The Jordanian government maintains constant exchange rates, which is a major reason for the currency's appreciation. Unlike some other Middle Eastern countries, Jordan is not an oil-rich country exclusively and relies mostly on other exports as a means of earning capital.
Jordan's economy is small and well-diversified, ranging from trade and finance to manufacturing and mining, which may explain why Jordan's currency is strong.
Currently, the value of one Jordanian dinar is about US $1.41.
3. Omani Rial (OMR)
Omani Rial was first introduced in 1973 as the official currency of the Sultanate of Oman. Unlike most other traditional currencies, the Omani Rial is divided into 1,000 smaller sections known as "Bissa." The value of the Omani rial soon rose after its roll-out due to the success of Omani oil exports and its link to the United States dollar.
The strength of Oman's economy is that it is driven largely by abundant oil supplies, which in turn significantly affects the strength of the currency in the Sultanate of Oman. However, in recent years the Government of Oman has diversified its income through investment in mining, gas production, and tourism, which is a government plan to address the depletion of the country's oil reserves.
Currently, the value of the Omani Rial is about US $2.60.
2. Bahraini Dinar (BHD)
The Bahraini dinar is the official currency of the Kingdom of Bahrain and was introduced in 1965.
Oil is the economy in Bahrain, where Bahraini currency derives its strength from the export of petroleum products.
The Bahraini dinar has a significant market value in the international market and is one of the most stable currencies in the face of exchange rate volatility. Like the Omani rial, the Bahraini dinar is divided into 1,000 smaller units known as "bankruptcy."
Bahrain Dinar trading is restricted to Bahrain and is traded within the country only and is linked to the US dollar.
Currently, Bahraini dinars are worth about US $2.65.
1. Kuwaiti dinar (KWD)
Kuwaiti dinars are currently the world's most valuable currency in 2022. This position has been maintained for a long time, with Kuwait enjoying a stable economy, which in part contributes to its currency's strength. Moreover, the strength of Kuwait's currency is attributable to its participation in the oil and gas market, Falkwit is one of the world's largest oil exporters, and has significant reserves throughout the country.
Kuwait has a small population which can also be taken into account when analyzing why Kuwaiti dinars are the most valuable currency of the rest of the currencies.
The Kuwaiti dinar was first introduced in 1961 after Kuwait gained independence from the United Kingdom. Since then, the Kuwaiti dinar has increased in value to become the world's most valuable currency.
Currently, the Kuwaiti dinar value is about US $3.24.
What is the strength and value of currencies?
- When looking at currencies to determine the most valuable currency, it must be borne in mind that currency strength is not necessarily an indicator of the strength or weakness of the economy. For some countries, having a high-value currency is useful, while some countries can also benefit from having a lower value for their currency.
- This is because the weaker currency helps export-dependent countries compete in the global market, where large market shares are made easier for these countries. After all, their goods are relatively cheaper to buy.
- However, the low currency price is not always due to the export revenue improvement strategy. Other currencies, such as the Nigerian naira or Tanzanian shilling, were of low value because of the country's serious economic challenges and not because of the State's export strategy.
- Finally, currency exchange rates are unpredictable, especially with significant economic and political fluctuations.
- The value of currencies always changes, and their lack of stability is what disrupts investment in this market. So if you're looking to invest in the currency market, be wary of the rapid fluctuations in the exchange rates of different currencies to have a successful investment experience.
- What about your country's currency? Do you think it has an opportunity to break into this list and attract investors in the currency trading market? Do you consider that one of the currencies mentioned in this article may be subject to graduation from the list of the world's most expensive currencies one day?.
The sources on which the article was based
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