The 10 Most Powerful Currencies in the World in Terms of Currency Strength Against the Dollar

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Samson:  The 10 most powerful currencies in the world in terms of currency strength against the dollar

11th June, 2022

There is wide controversy between the classification, the first which considers the strongest currency to be the most valuable currency against the dollar, and the second which considers the strength of the currency related to other matters such as the extent of its recognition, use and share of foreign exchange reserves in central banks.

In fact, if we are to take the second approach in this classification, the dollar is undoubtedly the most powerful currency in the world. But for the approach that takes the price of the currency against the dollar above all else, the order we get will be as follows:

1 - The Kuwaiti dinar ($3.29): It is the most valuable currency against the US dollar, taking advantage of Kuwait's oil wealth and its presence in the global market. It was first introduced in 1961 after the country gained independence from the United Kingdom, and since then, the Kuwaiti dinar has become and remains the most valuable currency in the world. Over the years, the dinar has been pegged to a number of different currencies, including the US dollar between 2003 and 2007.

2 - The Bahraini dinar ($2.65): It was first introduced in 1965, and comes in second place, supported by oil products and exports. Similar to the Jordanian dinar, the Bahraini dinar is used only in Bahrain, and is linked to the US dollar.

3 - The Omani riyal ($2.6): It was first introduced in 1973, and it witnessed a significant increase in value due to the success of oil supplies and their linkage to the US dollar, noting that the purchasing power of this currency is very high, so that the government must provide banknotes of a quarter and a half riyal, Since 2019, the riyal is equivalent to $2.6.

4 - The Jordanian dinar ($1.41): It was first introduced in 1949, to replace the Palestinian pound, which had been issued in 1927, and has been pegged to the US dollar for 20 years, and this has helped it become one of the strongest currencies in the world. However, despite this position, the dinar is still used exclusively in Jordan.

5- The pound sterling ($1.26) the official currency of the United Kingdom... It is often seen as the strongest currency in the world, although this is contrary to reality, because its value is less than the values ​​of 4 Arab currencies. London’s decision to leave the European Union had a negative impact on the value of the pound, which is one of the most widely used currencies, as well as the oldest independent currency in the world, as it was first used in the United Kingdom in 1489.

6 - Gibraltar pound ($1.23) It is the official currency of Gibraltar. In addition to being used independently, it can also be exchanged for the pound sterling at face value, and in terms of appearance, it looks very similar to it. The government of Gibraltar prints all of its banknotes and coins. The most common exchange rate in Gibraltar is the pound to the euro.

7 - Cayman Islands dollar ($1.2): The Cayman Islands is a British territory located in the Caribbean and is known as one of the best tax havens in the world, because it provides banking licenses to a number of the largest banks in the world, because it provides banking licenses to a number of the largest banks in The world, hedge funds and insurance companies. The islands dollar was introduced in 1972 as an alternative to the Jamaican dollar, and it has become among the strongest currencies in the world.

8 - Euro ($1.1): Adopted on January 1, 1999, as the second world reserve currency, it is the official currency of 19 of the 28 member states of the European Union (EU). This currency began to be circulated in the alternative in the form of traveler's checks and electronic bank transfers, before the emergence of banknotes and coins after a few years, specifically in 2002. The aim of the euro currency was to increase economic and commercial interdependence among all members of the European Union who choose to adopt it. It is worth noting that the Euro has been declining in the past months to reach $1.05 recently, but that didn't affect its ranking.

9 - Swiss franc ($1.01): It's still ninth on the list with good reason, though, because Switzerland is one of the richest countries in the world with a proven track record in banking and finance. The presence of some of the world's tightest monetary policies and the lowest levels of debt has led many investors to view the Swiss franc as a "safe bet", with investors choosing to store some of their wealth in the official currency of Switzerland. The franc is known as the sixth most traded currency in the world and is expected to retain its value for the foreseeable future.

10 - The US dollar is the most traded and used currency in the world, and holds the title of the first reserve currency in the world, as it is held by all central and commercial banks almost without exception.   LINK