Whether you are planning your tropical vacation to Thailand or ready to witness the beauty of the European countryside, wherever you go, you need to carry foreign currency with you. It is as important as your visa and passport.
The UN recognizes 180 official currencies in the world that are used across 195 countries.
The strongest currencies are determined according to both local and international factors such as inflation rates, the status of supply and demand in the foreign exchange market, the economic stability of the country, etc.
Currency strength is the purchasing power of a national currency. It is calculated by comparing the quantity of goods and services that can be purchased using one unit of the national currency to the foreign currency gained in exchange.
Foreign currency is always exchanged in pairs like buying US Dollars with Indian Rupees.
Thus, a national currency is always relative to the foreign currency in price, called the exchange rate.
This exchange rate determines the cost of goods and services in the foreign currency.
If the exchange rate of the pound weakens against the dollar, a US trip will become costlier in terms of Sterling Pound.
Let’s have a look at the world’s strongest currencies as of September, 2024:
10 Strongest Currency in the World
1. Kuwaiti Dinar (KWD)
While most people consider the US Dollar as the strongest currency, it does not hold the crown.
Introduced in the 1960s, the Kuwaiti Dinar has amassed its position as the world’s strongest currency owing to its global oil export.
2. Bahraini Dinar (BHD)
As global oil exporters, the Gulf countries enjoy a substantial economic advantage over other countries.
The second in line for the strongest currencies in the world falls to the Bahraini Dinar.
The country has a strong expat community which also includes Indians. BHD is pegged against the US Dollar.
3. Omani Rial (OMR)
After abandoning the Indian Rupee (INR) as its official currency, Oman adopted the Omani Rial which gains its strength majorly from oil exports, much like other Gulf nations.
Introduced in the 1970s, it is pegged against the US Dollar.
4. Jordanian Dinar (JOD)
Among the strongest currencies in the world, the Jordanian Dinar comes fourth on the list.
It replaced the Palestinian Pound in 1950 and is pegged against the US Dollar.
Its fixed exchange rate, diversified economy, and gas and oil exports have contributed to its strength in the foreign exchange market despite sluggish economic growth and rising debts.
5. Gibraltar Pound (GIP)
This British territory introduced its official currency back in the 1920s and made its way into the strongest currencies of the world.
At par with the British Pound Sterling, it is dependent on tourism and e-gaming sectors.
6. British Pound (GBP)
The World Bank recognizes Britain as the sixth largest country by its GDP.
London’s status as a global financial hub and Britain’s profitable trade activities resulted in a strong status for the British Pound that remains free-floating in the foreign exchange market.
7. Cayman Islands Dollar (KYD)
British territory in the Caribbean, the Cayman Islands serves as an offshore financial centre.
The KYD was first introduced in the 1970s and is pegged to the US Dollar.
8. Swiss Franc (CHF)
The official currency of Switzerland and Liechtenstein, the Swiss Franc enjoys the eighth rank among the world’s strongest currencies.
Being one of the most economically and politically stable countries, Switzerland holds a significant position as one of the wealthiest countries in the world.
The Swiss Franc used to be pegged against the Euro before it became free-floating.
9. Euro (EUR)
The official currency of the Eurozone which consists of 19 members of the European Union, the Euro holds the ninth position among the strongest currencies of the world.
It remains free-float and is the second-largest reserve and second-most traded currency in the world after the US Dollar.
10. US Dollar (USD)
Even though it is not the strongest currency in the world, the US Dollar holds its place among the top 10 strongest currencies while being the most-traded and largest reserve currency globally. It is legally recognized in the US, its territories, and other sovereign nations like Puerto Rico, Zimbabwe, and Ecuador and is used to price commodities like oil, gold, copper, etc.
The US enjoys the status of the world’s largest GDP owing to the financial strength of the US Dollar.
It is always a good idea to exchange your INR with USD for your foreign trips since it is widely recognized, easy to exchange, and has better exchange rates.
Note: The strongest currencies remain subject to fluctuations.
Here are the currency values of the strongest currencies in terms of the Indian Rupee (INR) as of September 17, 2024.
Don’t forget to convert your currencies before heading for your foreign trip.
Make sure that you don’t fall for any currency scams and refer only authorised money exchangers.
For any assistance while planning your trip, you can always reach out to us.
Visa2fly’s team of experts will ensure that you have a seamless journey helping with all your travel-related discrepancies.
