SEE: The richest currencies in the world 2020.
Currency has always been a means of exchange for goods and services world over, it has also been traded among countries and individuals due to the interest rate attached to it. This is to comfortably say that a currency interest rate goes along way to determine how strong,expensive and rich such currency is.Having that in mind, a currency high interest rate increases its purchasing power compared to other currencies.
Every countries has their own currency, the development and growth of a country's economy might to some extent determines its currency value,strength and richness, that's why a country that engage more in export is more likely to get a higher currency value, richness and strength than others.
One of the factors affecting the value of a currency is the economic development of a country, one should note that a currency value is not always constant but it is dynamic, that is, it changes with time due to factors like inflation, GDP percent etc.
The American dollar might be the most popular and highly traded money in the world, that doesn't mean it is the strongest,valuable,expensive and the richest currency of them all.The US Dollar($), Euro(€)(£) and japanese Yen(¥), top the list of the most popular currencies on earth respectively but how do they rank in terms of the value? its what's important.
The currency converter is a tool that will help to know how individual currencies perform against the US Dollar($).
What is the value of your local currency compared to the US Dollar? If you believe your country has the highest currency in the world, then check the list of highly placed currency for 2020 below and find out your self.
1 – Kuwaiti Dinar ($3.24)
Currency code – KWD.
Kuwaiti Dinar rates:
1 KWD = 3.26 USD (Kuwaiti dinar to US dollar).
1 KWD = 2.799EUR (Kuwaiti dinar to Euro).
1 KWD = 1246.49 ( Kuwaiti dinar to Naira).
The highest currency in the world is Kuwaiti Dinar (against the US Dollar).
Kuwait is a small country with enormous wealth. The high value (rate) of its currency is explained by significant oil exports into the global market.
Due to the stable petroleum-based economy, highly developed oil production and export, Kuwait is considered to be one of the richest countries in the world.
More than 80% of the country's revenue comes from the oil industry, as petroleum production here is the easiest and, therefore, the cheapest among other countries.
Since 2003 the currency was pegged to the US Dollar, but in 2007 the government decided to peg the Kuwaiti Dinar to the weighted currency basket.
Besides the very stable economy, Kuwait is a tax-free country with a very low unemployment rate.
2 – Bahrain Dinar ($2.66)
Currency code – BHD.
Bahrain Dinar rates:
1 BHD = 2.65 USD (Bahrain Dinar to US Dollar).
1 BHD = 2.28 EUR (Bahrain Dinar to Euro).
1 BHD = 1013.17 NGN ( Bahrain Dinar to Naira)
The Bahrain Dinar is the second most valuable currency.
Bahrain is a Persian Gulf island state with a population of just over 1 million people. As in the first case, this country’s largest source of income is the "black gold" exports.
Interestingly, the Bahrain Dinar is pegged to the US Dollar exchange rate, and its rate against the US Dollar has remained stable since 2005.
3 – Oman Rial ($2.60)
Currency code – OMR.
Oman Rial rates:
1 OMR = 2.60 USD (Oman Rial to US Dollar).
1 OMR = 2.23 EUR (Oman Rial to Euro).
1 OMR = 992.21 NGN (Oman Rial to Naira)
Oman is a country on the Arabian Peninsula. Thanks to its strategic location, it possesses a developed economy and a high quality of life.
The Oman Rial is also pegged to US Dollar as Bahrain Dinar.
Remarkably, the purchasing power of this currency is so high that the government had to issue 1/4 and 1/2 Rial banknotes. On the picture above, you can see 1/2 Rial (Half Rial).
4 – Jordan Dinar ($1.41)
Currency code – JOD.
Jordan Dinar rates:
1 JOD = 1.41 USD (Jordan Dinar to US Dollar).
1 JOD = 1.21 EUR (Jordan Dinar to Euro).
1 JOD = 538.79 NGN ( Jordan Dinar to Naira)
It is hard to explain the high value of Jordan Dinar. This country is not economically developed, and it lacks essential resources, such as oil.
Nevertheless, one Jordan Dinar costs 1.41 US Dollars, which makes it one of 10 the strongest world currencies.
5 – British Pound Sterling ($1.23)
Currency code – GBP.
British Pound Sterling rates:
1 GBP = 1.28 USD (British Pound Sterling to US Dollar).
1 GBP = 1.12 EUR (British Pound Sterling to Euro).
1 GBP = 488.65 NGN ( British Pound Sterling to Naira)
Most people consider that British Pound is the strongest world currency, but it is only close the top five of this list.
British Colonies issue their own banknotes, which visually differ from banknotes issued by the Bank of England, but they are valued as 1 per 1.
Therefore, there are several of them: Scottish, North Ireland, Manx, Jersey, Guernsey, Gibraltar Pounds, as well as St. Elena Island Pound and Falkland Islands Pound.
Amusingly, native Britons do not always want to accept "other" Pounds as a means of payment.
6 – Cayman Islands Dollar ($1.22)
Currency code – KYD.
Cayman Islands Dollar rates:
1 KYD = 1.22 USD (Cayman Islands Dollar to US Dollar).
1 KYD = 1.05 EUR (Cayman Islands Dollar to Euro).
1 KYD = 465.9 NGN (Cayman Islands Dollar to Naira)
The Cayman Islands are one of the world’s best tax haven. These islands provided licenses for hundreds of banks, hedge funds, and insurance companies.
Thanks to its leadership among tax haven Cayman Islands Dollar costs approximately 1.22 US Dollars.
7 – European Euro ($1.10)
Currency Code – EUR.
European Euro rate:
1 EUR = 1.17 USD (European Euro to US Dollar).
1 EUR = 445.18 NGN ( European Euro to Naira)
The Euro currency has strengthened over the past few years. This allowed it to rise in the list of the most powerful currencies. Partially, its strength is explained by the fact that it is the official world currency in European countries, among which you will find several economically developed ones.
Besides, Euro is the second reserve world currency enveloping 22.2% of all world savings (US Dollar has 62.3%).
8 – Swiss Franc ($1.03)
Currency code – CHF.
Swiss Franc rates:
1 CHF = 1.09 USD (Swiss Franc to US Dollar).
1 CHF = 0.93 EUR (Swiss Franc to Euro).
1 CHF = 414.95 NGN (Swiss Franc to Naira)
Switzerland is not only one of the richest countries in the world, but it also belongs to the most stable ones. Its banking system had long been known for its formerly resolute "Bank Secrecy".
Besides, its high-tech goods are very well known all around the globe.
Pay attention to how extraordinary this banknote looks. This is the only banknote I saw which has a vertical view.
9 – US Dollar
Currency code – USD.
US Dollar rate:
1 USD = 0.86 EUR (US Dollar to Euro).
1 USD = 382.00 NGN ( US Dollar to Naira)
Owing to the USA's world economic leadership, its currency achieved the title "World Reserve Currency". In other words, you can make dollar payments everywhere (in any country).
10 – Canadian dollar ($0.72)
Currency code – CAD.
Canadian dollar rates:
1 CAD = 0.75 USD (Canadian dollar to US Dollar).
1 CAD = 0.64 EUR (Canadian dollar to Euro).
1 CAD = 284.72 NGN ( Canadian dollar to Naira)
The Canadian dollar is the fifth largest reserve world currency. It is often called the "loonie" in honor of the bird depicted on the one-dollar coin.
Though the prosperity and development of a country affect its country value, and inflation could be a factor for a country high value currency due to demand.Thus, note that the high value of the currency only says that inflation processes in the country are under control.
In the context of this article, we should also mention Japan being one of the strongest economies in the world. But at the same time, the value of the Japanese yen is very small, $1 = ¥ 107.74.
Information about the highest value of currencies can hardly be used by investors to make any investment decisions. In this case, it is better to consider the most stable currencies.
What is your submission about the top highest currencies above?
Is there any addition of how it was arrived at?
In your own opinion, how can Nigeria get to this stage of the most expensive currency, as we have been there before?
All this questions are awaiting your wise response readers.
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Source: Opera News