Which Is The Most Valuable Currency In The World? Here Are The Top 7

If you asked the average Joe with little forex knowledge what the most expensive currency is, the answer would probably be the US dollar. While being the world’s reserve currency, it’s technically eighth when ranking high-worth legal tender.

Actually, the strongest globally is one that nearly no one has heard of: the Seborgan Luigino (SPL), used by the Principality of Seborga, located near France. As with all tiny and obscure countries, their currencies are not recognised internationally.

This leaves us with others which are still not particularly mainstream but have reasonable acceptance outside their borders.

1. Kuwaiti dinar ( د.ك/KWD)

The Kuwaiti dinar is currently the world’s most expensive currency. While the country only has a population below 5 million, it’s among the wealthiest nations worldwide in gross national income per capita.

So, why is the Kuwaiti dinar so strong? Kuwait is part of a group of small emirate countries like Bahrain, Oman, and Jordan, where most of its wealth comes from oil, natural gas, and petroleum.

This country currently contributes to about 10% of the entire global supply of oil reserves. Also, countries like Kuwait have a fixed exchange rate for a basket of other currencies. This is how they maintain relatively high values, meaning they don’t fluctuate much.

Another characteristic of this prized money is the use of higher denominations, typically a minimum of 1000 units (where most countries use 100).

2. Bahraini dinar (.د.ب/BHD)

Bahrain shares commonalities with the Kuwaiti dinar, making it the second among the most expensive currencies in the world.

The nation has a lower population than its Arab counterpart, all living in a tiny archipelago. Yet, like Kuwait, the country has a valuable economy thanks to massive oil and petroleum exports.

The currency has been pegged to the greenback since 1980 at a USD to Bahraini dinar rate of $2.65. Plus, the nation holds substantial reserves in American dollars to maintain the fixed rate and enable easier foreign investment.

As with Kuwait, Bahraini maintains strong trade relations with the United States as oil is priced predominantly in USD.

3. Omani rial (ر.ع./OMR)

Oman and its rial are copycats of Kuwait and Bahrain’s respective currencies. The country is considered the oldest independent Muslim state. Like most of its counterparts, Oman is a high-income economy primarily dependent on oil and gas exports.

The USD to Omani rial rate has been $2.6 since 1986.

4. Jordanian dinar (د.ا/JOD)

The Jordanian dinar’s inclusion in this list differs from the previous three currencies. The Hashemite Kingdom of Jordan (or simply Jordan) lacks the in-demand oil resources of its Arab neighbours. It is considered a region with an upper-middle income bracket, with a sizable chunk of its population living below the poverty line.

Yet, the country’s economy is well-diversified, excelling in finance, transportation, communication, construction, mining, and manufacturing. As with Kuwait, Bahrain, and Omar, Jordan is good friends with Uncle Sam as its currency is pegged to the US dollar at approximately $1.40 for every JOD.

5. British pound sterling (£/GBP)

The British pound sterling (or quid as it’s colloquially known) is the United Kingdom’s official currency but is used by many other nations. GBP is considered the oldest legal tender in recorded history and was once the world’s reserve currency until roughly the first half of the 20th century.

While GBP is, pound-for-pound (no pun intended), the most valuable money in mainstream forex, it’s technically the fourth most traded after the US dollar, euro, and Japanese yen.

6. Euro (€/EUR)

If we metaphorically refer to the US dollar as gold by prominence, the euro is like silver. The euro is the second-biggest reserve currency, with a reputation of being relatively stable owing to its popularity in the financial markets.

Moreover, the EUR/USD market is the most dominant and accounts for a vast chunk of daily-occurring forex transactions. 19 of the 27 European Union member regions use the euro.

7. Swiss franc (CHf/CHF)

The Swiss franc is the legal tender for Switzerland and Liechtenstein. It is one of the most valuable currencies for a few reasons.

The ‘Swissy’ has long held the ‘safe haven’ status because of Switzerland’s highly developed economy, commercial value, and quality of life.

Investors tend to hoard Swiss francs during economic downturns, making it sought-after. Consequently, it is the seventh-most valuable and seventh-most traded currency in forex.

Curtain thoughts

The face value of a currency is irrelevant as each nation technically has the power to price their money at whatever mark within reason. We see this attribute with the likes of the Bahraini dinar and Omani rial.

Ultimately, more expensive money doesn't inherently correlate with a wealthier country. Despite having plenty of naysayers, the US dollar is the world's reserve money, striking the right balance between being a comparatively strong currency and a developed economy.