The American magazine “Forbes” reported that the US dollar is not the strongest currency in the world, but the Kuwaiti dinar, and by a large difference between them.
The American magazine explained that the US dollar is generally seen as the strongest currency in the world, adding that it is almost the most traded currency on the world stage, but it is surprising that the “dollar” is not the strongest fiat currency, among the world’s 180 legally recognized currencies worldwide.
The report, translated by Shafaq News, reviewed the 10 most powerful currencies in the world, based on their relative value against the US dollar, noting that most currencies are “floating,” which means that their value is volatile by supply and demand, while some currencies are “connected,” which means that their value relative to another currency (such as the US dollar) is fixed at an agreed price.
The report pointed out that exchange rates affect the cost of goods and services in a foreign currency, but exchange rate fluctuations also create an opportunity for investors looking to make profits through foreign exchange trading.
Here are the 10 most powerful coins:
- The Kuwaiti dinar
The Kuwaiti dinar is the strongest currency in the world where a Kuwaiti dinar buys 3.26 US dollars (in other words, 1 US dollar is equivalent to 0.31 Kuwaiti dinars, that is, every Kuwaiti dinar is equivalent to about 3 dollars).
The report pointed out that Kuwait earns a lot of its wealth from being a leading global source of oil, and the Kuwaiti dinar was introduced in the 1960s and initially linked to the pound sterling before re-linking it to a basket of currencies.
- The Bahraini dinar
The Bahraini dinar is the second strongest currency in the world where one Bahraini dinar buys 2.65 USD (or one dollar equals 0.38 Bahraini dinars).
Bahrain earns much of its wealth from oil and gas exports. The Bahraini dinar was put into circulation in 1965 and is pegged to the US dollar.
- Omani Riyal
Omani Rial is the third strongest currency in the world where Omani Rial buys 2.60 USD (or USD equals 0.38 OMR). As with its other wealthy neighbors, Oman is a major source of oil and gas, and the Omani riyal was introduced in the 1970s and is pegged to the US dollar.
- The Jordanian Dinar
The Jordanian dinar is the fourth strongest currency in the world where a Jordanian dinar buys 1.41 USD (or one dollar equals 0.71 Jordanian dinars).
Jordan is less dependent on oil and gas exports than its neighbors and suffers from slowing economic growth and rising debt. The Jordanian dinar was put into circulation in 1950 and is pegged to the US dollar.
- Pound Sterling
The British pound is the fifth strongest currency in the world with the British pound buying $1.20 USD (or 1 USD equal to £0.83).
Britain is the sixth largest country in terms of GDP, according to the World Bank, and the pound was first floated in the 14th century before its decimal value was broken in 1971. It is a free currency and is not associated with other currencies.
- Cayman Islands dollar
The Cayman Islands dollar is the sixth most powerful common currency in the world, buying $1.20 (or $1.e. dollars equal to $0.83).
The Cayman Islands is a British territory in the Caribbean and is an offshore financial centre. The Cayman Islands dollar was first introduced in the 1970s and is pegged to the US dollar.
- Gibraltar pound
The Gibraltar pound is the sixth strongest common currency in the world, buying 1 pound from Gibraltar $1.20 (or 1 US dollar equal to 0.83 Gibraltar pounds).
Gibraltar is located in the southern part of Spain and is officially a British territory. Gibraltar Pound was first floated in the 1920s and is linked to the pound sterling (and the Gibraltar pound equals one pound).
- Swiss franc
The Swiss franc is the eighth strongest currency in the world, with 1 Swiss franc buying $1.07 (or 1 USD equal to 0.93 Swiss francs).
The Swiss franc is the official legal currency of Switzerland and Liechtenstein and looks to it as a safe haven due to the political stability in Switzerland. The Swiss franc was introduced in 1850 and was briefly pegged to the euro before moving on to free float.
The euro is the ninth most powerful currency in the world with 1 euro buying $1.07 USD (or 1 USD equal to 0.94 EUR).
The euro is the official currency of the eurozone, consisting of 19 of the 27 countries that are part of the European Union. The physical currency in circulation entered 2002 and is free.
The U.S. dollar is the 10th most powerful currency in the world, worth exactly 1 against itself. All other currency units around the world are worth less than the US dollar.
The report concluded that the US dollar was introduced in the 18th century, a legal tender in the United States, other U.S. territories and sovereign states including Puerto Rico, Ecuador and Zimbabwe.
The United States is the world’s largest economy in terms of GDP The U.S. dollar is the most traded currency in the world, and the U.S. dollar is the world’s largest reserve currency (the currency most held by central banks) and is the currency used to price many commodities, including oil, gold, and copper.
Translation: Shafaq News Agency