Forex Trading

Top 10 Highest Currencies in the World

10. Australian Dollar

Australian dollar20 Australian Dollars Banknote (1966-1994)

Country: Australia
Exchange Rate: 1 AUD = $0.77

The Australian dollar is the current monetary unit used in the Commonwealth of Australia, including numerous islands in this region. In 2016, the Australian dollar became the 5th most traded currency in the world, after US dollar, Euro, Japanese yen and pound sterling and was responsible for 6.9% of the world’s daily share.

The Australian dollar is one of the most popular currencies among the forex traders due to Australia’s relatively stable economy and government, marginal intervention in the foreign exchange market by the central government and its greater exposure to most of the big Asian markets.

9. United States Dollar

one US dollarFederal US Dollar banknote

Country: The United States

Do you know where the iconic $ sign came from? The origin of the dollar sign can be traced back to the legendary Spanish monetary unit known as peso or “ps” (Latin abbreviation). Peso has been used as a monetary unit in Spain from 16th to the 18th century and it’s currently being used in several former Spanish territories in Latin America.

It is needless to say that the US dollar is the most powerful currency in the world. It is the most traded currency and remained the largest reserve currency in the world even after the termination of the Bretton Woods system. It is also one of the two most common De facto currencies which is used by small countries of Aruba, Cambodia and the Dominican Republic.

8. Swiss Franc

swiss francA 20 CHF banknote

Country: Switzerland and Liechtenstein
Exchange Rate: 1 CHF = $1.02

Switzerland is one of the world’s wealthiest nations. Its economy is considered (by investors) as tax heaven due to its low tax rates and fairly stable economy. Swiss Franc is the official currency of Switzerland, Liechtenstein and a legal tender in Campione d’Italia, a small Italian enclave in the Lombardy region. In 2016, the Swiss franc accounted for 0.2 % of the total foreign exchange reserves (down by 0.1% from 2015).

7. Euro

euro

Country(s): Eurozone
Exchange Rate: 1 EUR = $1.18

The Euro is the second most traded and the second-largest reserve currency in the world only after the US dollar. Along with the Eurozone countries, many other European and even African nations peg their own currencies to the Euro to maintain stabilize exchange rates. Unlike most of the other currencies in the world, Euro is relatively young, which only came into existence in 1999 and is largely derived by political events inside the Eurozone.

6. Caymanian Dollar

Caymanian dollar

Country: Cayman Islands
Exchange Rate: 0.83 KYD = 1 USD

Situated in the western Caribbean Sea, it’s an autonomous British Overseas Territory with 14th largest GDP in the world based on PPP value. The Cayman Island Dollar is currently one of the 15 most valued currency in the world (as of 2014 it was 9th most valued currencies) and is pegged with the US dollar at a rate of 1.00 KYD = 1.20 USD.

5. Pound Sterling

GBP

Country: United Kingdom
Exchange Rates: 1 GBP = $1.34

The British Pound sterling was once the currency of half of the world, legally circulated in various countries under the British empire. Sometimes it was used alongside the local currency of that particular nation. After the Second World War, after entering an agreement with the United States, pound sterling was pegged with the dollar (US) at a rate of £1 = $4.03.

This agreement was later named as the Bretton Woods system, which dictates global post-war exchange rates. But in 1949, the pound was devalued due to increasing economic pressure by 30.5% to $2.80. The move directly affected several major currencies negatively, which were devalued against the dollar.

When Euro was introduced, as a Eurozone nation Great Britain could have adopted Euro as its legal tender, instead, the UK successfully opt-out, however, it was a highly controversial political decision at that time.

4. Jordanian Dinar

Jordanian dinar

Country: Jordan
Exchange Rate: 1 JOD = 1.41 USD

Jordanian dinar was instated as the legal tender of The Hashemite Kingdom of Jordan (officially) in 1950, 4 years after Jordan became an independent nation. The currency is also unofficially used by West Bank (Palestinian territories). The Jordanian dinar was officially pegged to the IMF SDR’s, which means that it’s almost fixed at a rate of 1 dinar = 1.41044 dollars.

3. Omani Rial

omani rial

Country: Oman
Exchange Rate: 1 OMR = $2.60

Like most of the Gulf countries, Oman’s economy heavily depends on its oil exports, though its economy is relatively diversified. Oman has the 25th largest oil reserve in the world with identified oil reserves up to 5.5 billion barrels.

The Omani Rial was first introduced as the nation’s legal currency in 1973 when it replaced the rial Saidi (not Saudi riyal) after changes in regime. Rial is subdivided into 1000 baisa (lower denomination). Between 1973 and 1986, the Omani rial was fixed (pegged) to the American dollar at a rate of 1 rial = $2.895 USD. It changed in 1986 when it was updated to 1 rial = $2.6008 USD

2. Bahraini Dinar

Bahraini Dinar

Country: Baharain
Exchange Rate: 1 BHD = $2.65

The kingdom of Bahrain is a small island country situated between the Qatar peninsula and the northeastern coast of Saudi Arabia. The dinar was introduced in 1965, replacing the Gulf rupee at a rate of 10 rupees = 1 dinar. In 1980, Bahrain’s government officially pegged dinar to IMF’s special drawing rights or SDRs.

After pegging, the currency was fixed at $1 USD = 0.376 BD or 1 BD = $2.65957 USD. After Malta adopted Euro as its legal currency adopted the euro, the Dinar became the second highest-valued currency unit.

1. Kuwaiti Dinar

20 Kuwaiti Dinar

Country: Kuwait
Exchange Rate: 1 KWD = $3.31

The Kuwaiti dinar is perhaps the highest currency in the world with maximum dollar conversion rates. It was introduced into the legal system of Kuwait in 1960 as a replacement for Gulf rupee. During its initial years, the Kuwaiti dinar was equivalent to the pound sterling.

In 1990, during the invasion of Iraq, the Kuwaiti dinar was shortly replaced by the Iraqi dinar as the legal currency and large amounts of banknote denominations were looted by the forces of the invading country. It was reinstated after the liberation and new banknote series were introduced for the first time.

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