Would you guess what are the most valued currencies in the world? You’re probably thinking US Dollar or Euro, but… they’re not even in the top 5!
If you’re a Forex trader, currencies’ performance is worth researching. Let’s explore the world’s most valued currencies today and uncover the factors that make them strong.
Why Are Some Currencies More Valuable Than Others?
Before we get to the ranking of the world’s most valued currencies, let’s talk about what makes a certain type of money more valuable than others.
- Economic stability. A country with a robust economy typically has a stronger currency.
- Interest rates. Higher interest rates attract foreign capital, increasing demand for the currency.
- Political stability. Investors love predictability, so stable governments tend to have stronger currencies.
- Trade balance. Countries that export more than they import tend to have stronger currencies due to higher demand.
- Foreign exchange reserves. Countries with significant reserves can support their currency, making it more attractive.
- Market sentiment. Sometimes, it’s just about perception. If investors believe in a currency, its value can rise.
Top 20 Most Valued Currencies in the World
Here’s a snapshot of the top 20 most valued currencies as of 2024:
| # | Currency | Country | Symbol |
| 1 | Kuwaiti Dinar | Kuwait | KWD |
| 2 | Bahraini Dinar | Bahrain | BHD |
| 3 | Omani Rial | Oman | OMR |
| 4 | Jordanian Dinar | Jordan | JOD |
| 5 | British Pound Sterling | United Kingdom | GBP |
| 6 | Cayman Islands Dollar | Cayman Islands | KYD |
| 7 | Euro | Eurozone | EUR |
| 8 | Swiss Franc | Switzerland | CHF |
| 9 | US Dollar | United States | USD |
| 10 | Canadian Dollar | Canada | CAD |
| 11 | Australian Dollar | Australia | AUD |
| 12 | Singapore Dollar | Singapore | SGD |
| 13 | Brunei Dollar | Brunei | BND |
| 14 | Libyan Dinar | Libya | LYD |
| 15 | New Zealand Dollar | New Zealand | NZD |
| 16 | Azerbaijani Manat | Azerbaijan | AZN |
| 17 | Bosnian Convertible Mark | Bosnia and Herzegovina | BAM |
| 18 | Bulgarian Lev | Bulgaria | BGN |
| 19 | Fijian Dollar | Fiji | FJD |
| 20 | Egyptian Pound | Egypt | EGP |
Now let’s try to classify these currencies depending on the factors that shape their value.
Oil export
Kuwaiti Dinar, Bahraini Dinar, Omani Rial, Jordanian Dinar, Brunei Dollar, Libyan Dinar, Azerbaijani Manat
The main wealth of these top currencies comes from oil and gas. These countries hold some of the largest oil reserves in the world, and a major part of the income derives from petroleum export.
For example, the Kuwaiti Dinar, ranked #1 among the top 20 most valued currencies in the world, wields significant influence in its region. If you’re wondering which country the Kuwaiti Dinar impacts, the answer would be all the countries within the Gulf Cooperation Council (GCC) and the broader Middle East and North Africa (MENA) region.
But there’s more to their success than just hydrocarbons. For example, Kuwait’s government is boosting the private sector, diversifying the economy, and maintaining responsible budget policies. Bahrain is a regional financial hub, while Oman is focused on diversifying its economy by supporting other industries, and Jordan’s central bank carries careful monetary and fiscal policies.
Strong economy
British Pound Sterling, Euro, USD, Swiss Franc, Canadian Dollar, Australian Dollar, Singapore Dollar, New Zealand Dollar
When it comes to the world’s most valued currencies, a strong economy is a major factor. However, these currencies thrive not just on economic strength but also on factors like political stability, strategic trade relationships, and robust financial sectors.
For example, the UK boasts a highly developed financial sector and significant global trade influence, with London’s status as a financial hub playing a critical role.
The Euro represents a large and stable economy spanning multiple countries in the Eurozone. Economic cooperation, political unity, and significant industrial and service sectors keep the Euro robust.
The US Dollar (USD) is the global reserve currency, benefiting from the immense economic influence of the United States, high foreign exchange reserves, and strong international trade presence.
The USD and EUR are global trade currencies, which is why they are the base currencies in the majority of currency pairs traded on the Forex market.
The Swiss Franc (CHF), Canadian Dollar (CAD), and New Zealand Dollar (NZD) thrive due to their countries’ reputation for neutrality, political stability, and robust financial sectors. The Australian Dollar (AUD) has great value due to Australia’s strategic trade links with Asia. As global currencies, they’re also widely presented in the Forex market, which generally includes the 50 most valued currencies in the world.
The Singapore Dollar (SGD) is on the list thanks to Singapore’s strategic location as a financial and trade hub.
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Special status
Cayman Islands Dollar
The Cayman Islands dollar (KYD) is among the world’s most valued currencies because this tiny territory punches above its weight as a global financial hub.
The Cayman Islands are a magnet for financial heavyweights. Banks, investment funds, financial institutions, businesses and investors call these islands home, drawn by a robust regulatory system, top-notch banking infrastructure, and favourable tax policies.
Links with the major economies
Bosnian Convertible Mark, Bulgarian Lev
These currencies are tightly linked to major economic players, making them stand out in the global financial landscape.
Both the Bosnian Convertible Mark and Bulgarian Lev are pegged to the euro. This pegging stabilizes their exchange rates and enhances confidence in their value, providing economic stability. Moreover, these currencies have strong economic ties with the European Union.
Regional influence
Fijian Dollar, Egyptian Pound
Fiji holds strategic importance as a prominent member of the Pacific Islands Forum and other regional organizations. Its influence in regional affairs positively impacts economic stability and supports the value of the Fijian Dollar.
Egypt’s strategic location at the crossroads of Africa and the Middle East enhances its trade significance. The Suez Canal, one of the world’s busiest waterways, facilitates substantial maritime trade, bolstering the economy and reinforcing the strength of the Egyptian currency.
While still significant, regional influence alone is not as effective in shaping the value of a currency. For example, if we compare the top 50 most valued currencies to the top 100 currencies in the world, we’ll see that the latter includes more countries with regional influence rather than global dominance.
Bottom Line
As we see from the top 20 most valued currencies in the world list, the value of a currency is influenced by multiple factors, including the country’s economic and political stability, trade balance, and foreign exchange reserves.
Countries with a combination of these strengths tend to join the ranking of the world’s most valued currencies. Whether it’s the oil wealth of the Middle Eastern nations or the robust economies of Western countries, the currencies that top the charts often reflect a blend of these critical elements. Understanding these factors can provide valuable insights for Forex traders and investors looking to navigate the global financial landscape.
