If someone asks you about the strongest currency in the world what is the first thing that comes to your mind? You would probably think of the US Dollar or British pound, which have been the dominating force in the currency exchange market for many decades. And that is not surprising, as the US Dollar is also the world’s largest reserve currency, which means it cannot be replaced with a more powerful rival in the nearest future, as it is also backed by the US political and financial global landscape.
However, the tables were unexpectedly turned to bring the new world’s strongest currencies to the top list. What is even more surprising, you will not find USB and BP in the top 5. The majority of traders were surprised to find Kuwaiti Dinar (KWD) in the first place of the top 5 most powerful currencies in 2021 boasting the highest value when traded with INR.
Let’s have a look at the full list of the strongest currencies and countries where they are issued. Also, note, that despite dropping out of the top 5 list, USD is still one of the most traded and influential currencies in the world.
In this list, you will find currencies with the highest value evaluated in Indian Rupees. Once again, we would like to note that the strongest currency in the world does not mean it is the most traded one. What’s more, it may not be from the list of major currencies as well, as the financial situation may change rapidly. Now, let’s get to our top 5 list.
Yes, you’ve heard it right. KWD is the highest currency in the world. Besides, INR/KWD is one of the most popular currency pairs and exchange rates. Such popularity can also be explained by an expanding Indian expat community located in Kuwait. While KWD gains more and more power over the years, it eventually brings stability to Kuwait, which is also an oil-rich country. The local economy solely depends on oil export.
You could probably guess that BHD is the currency that belongs to Bahrain, a small country situated in the Arabian Gulf. As the majority of local economies, Bahrain is also dependent on oil production and export. Once again, the currency is very popular among Indian expats who live in Bahrain. For this reason, INR/BHD is another popular currency pair and exchange rate.
The third place goes to Omani Rial. The code of the currency is OMR. It was introduced only after 1940. Until that time, the country used INR as the official currency. Oman has conveniently nestled in the southeast of the Arabian Peninsula. The country has huge oil reserves to back the economy that depends on oil export as well. There is one thing traders should keep in mind: OMR is pegged to the US Dollar.
The Jordan currency takes the fourth position in our list. Along with the Israeli Shekel, it used to be the country’s main currency issued by the West Bank. The main reason for JOD to take such a high opposition is the fact that the local government takes drastic measures to keep the exchange rates fixed. JOD/EUR is one of the most popular currency pairs and exchange rates.
While being pegged to the British Pound, it can also be exchanged on the BP at par value, as Gibraltar is an overseas territory that still belongs to the United Kingdom. However, EUR/GIP is the most popular currency pair. The economy of the country relies on various fields including e-gaming, tourism. And other sectors.
Note: while still being the most traded currency, the US Dollar is currently taking 10th place costing 74.06 Indian Rupees per 1 USD.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.