Currency With The Highest Value
- The Kuwaiti Dinar is the currency with the highest value in the world. The dinar was introduced in 1960 to replace the Gulf rupee, equal to the Indian rupee. It was initially equivalent to one pound sterling .
- 1 Kuwaiti Dinar is = $3.24
Like in everything else in the world. There are highest and lowest values attached to countries and their currencies on the international money market.
Some days back we wrote about the weakest currency in the world. Still riding with that steam, we have decided to write about the currency with the highest value in the money market, worldwide.
For most people it is easy to instantly assume that it is either the pound or dollar. Simply because of how popular those currencies are in the money market. And for many Nigerians, it is because the naira is pegged against the dollar and so, the dollar is looked at as the Boss of all other currencies. But that is far from the truth.
The currency with the highest value in the world is not even from an English speaking nation. In fact the most currencies with high value come from that region.
What Is The Currency With The Highest Value?
1. Kuwaiti Dinar
1 KWD = 3.24 USD
The Kuwaiti dinar is the currency of Kuwait . And is sub-divided into 1,000 fils .
The dinar was introduced in 1960 to replace the Gulf rupee, equal to the Indian rupee. It was initially equivalent to one pound sterling .
When Iraq invaded Kuwait in 1990, the Iraqi dinar replaced the Kuwaiti dinar as the currency and large quantities of banknotes were stolen by the invading forces. After liberation , the Kuwaiti dinar was restored as the country’s currency and a new banknote series was introduced, allowing the previous notes, including those stolen, to be demonetized.
The first series of Kuwaiti dinars was issued following the pronouncement of the Kuwaiti Currency Law in 1960. While the second series was released after the creation of the Central Bank of Kuwait in 1969 as a replacement to the Kuwaiti Currency Board.
The third series was issued on 20 February 1980, after the accession to the throne of late Emir Jaber al-Ahmad al-Jaber al-Sabah , while the fourth series was issued on 24 March 1991 after the liberation from Iraq occupation.
The fifth series of Kuwaiti banknotes was in use from 3 April 1994 until it was withdrawn on 1 October 2015. While the sixth series of Kuwaiti banknotes was introduced into circulation on 29 June 2014 by the Central Bank of Kuwait.
From 18 March 1975 to 4 January 2003, the dinar was pegged to a weighted currency basket . From 5 January 2003 until 20 May 2007, the pegging was switched to 1 US dollar. With the central rate translates to approximately 1 KWD = US$ 3.53.
From 16 June 2007, the Kuwaiti dinar was re-pegged to a basket of currencies, and was worth about $3.28. Making the Kuwaiti Dinar the currency with the highest value in the world. 1
Kuwait is a major source of foreign economic assistance to other states through the Kuwait Fund for Arab Economic Development. In 1974, the fund’s lending mandate was expanded to include all developing countries in the world.
The petroleum industry in Kuwait is the largest industry in the country, accounting nearly half of the country’s GDP.
Kuwait proven crude oil reserves of 104 billion barrels (15 km³), is estimated to be 9% of the world’s reserves.
Kuwait’s oil production accounts for 7% of world-wide oil production. And the country is the world’s eleventh largest oil producer and seventh largest exporter.
According to the World Bank , Kuwait is the fourth richest country in the world per capita .
2. Bahrain Dinar
1 BHD = 2.66 USD
The next currency on our list of currency with the highest value is the Bahrain Dinar. Like the Kuwaiti dinar, it is also divided into 1000 fils. The Bahraini dinar was introduced in 1965, replacing the Gulf rupee at a rate of 10 rupees = 1 dinar.
It was the third-highest-valued currency unit after the Kuwaiti dinar and Maltese lira but that was before Malta’s adoption of the euro on 1 January 2008. After Malta adoption, the dinar became the second highest-valued currency unit.
The currency is fixed at $1 USD = 0.376 BHD, which translates to approximately 1 BHD = $2.65957 USD.
The Bahrain economy is heavily dependent upon oil and gas. Despite the Government’s past efforts to diversify the economy, oil still comprises 85% of Bahraini budget revenues.
Other major economic activities are production of aluminum – Bahrain’s second biggest export after oil and gas –finance, and construction. 2
Bahrain was named the world’s fastest growing financial center by the City of London’s Global Financial Centres Index. Petroleum production is Bahrain’s most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of GDP.
Even though the country depends on oil, the oil reserve has virtually dried up. The country is also relatively poor when compared to its oil-rich Persian Gulf neighbors. In addition to oil, it currently depends on international banking and tourism.
Bahrain’s economy is said to be by far the most diverse and sustainable in the GCC. Finance and manufacturing are among the largest sectors, with oil and gas production contributing less than 20 per cent of GDP growth.
Bahrain’s economy is the most free and most diverse in the Middle East, according to the 2008 Index of Economic Freedom. It has also been rated the most socially liberal country in the Gulf by the Oxford Business Group and is a young Middle Eastern democracy. 3
3. Oman Rial
1 OMR = 2.60 USD
Another currency with one of the highest value in the world is the Oman Rial. The Oman rial is divided into 1000 baisa and In 1970, the rial Saidi was introduced as the currency of Oman to replace the Gulf rupee.
The Omani rial replaced the rial Saidi at par in 1973.
The currency was pegged to the US dollar at 1 Omani rial = US$2.895, a rate that would continue until 1986, after which it was devalued by about 9% to 1 Omani rial = US$2.6008.
Since the last change in parity in 1986, the fixed peg has remained unchanged at USD 2.6008 per RO.
Oman provides strong protections for foreign businesses investing in Oman and is a member of the World Trade Organization (WTO) since 2000.
Oman’s economic freedom score is 63.6, making its economy the 75th freest in the 2020 Index. Oman’s economy has been in the moderately free category for 25 years. Oman is an open and oil dependent economy.
The country has been ruled by Sultan Qaboos bin Said Al-Said since 1970. And is one of the least populous Arab countries.
The total value of exports and imports of goods and services in the country equals 108.1 percent of GDP. 4
4. Jordan Dinar
1 JOD = 1.41 USD
After Jordan became an independent kingdom on 25 May 1946, it passed the Provisional Act No. 35 of 1949. The Act created the Jordan Currency Board.
And it was the board that issued the Jordan Dinar into circulation on 1 July 1950. Replacing the Palestine pound which was eventually removed from circulation on 30 September 1950.
5. British Pound Sterling
1 GBP = 1.23 USD
The British pound ranks 5th on our list of currency with the highest value and this will come as a shocking surprise to some. Who have always held the belief that the Pound was the strongest currency in the world.
The British pound is the official currency of the United Kingdom, Jersey , Guernsey , the Isle of Man , Gibraltar , South Georgia and the South Sandwich Islands , the British Antarctic Territory, and Tristan da Cunha .
The currency is subdivided into 100 pence and is considered the oldest currency in continuous use.
This British currency is also fiat money, with its value determined only by its continued acceptance in the national and international economy.
Together with the United States dollar , the euro, the Japanese yen and the Chinese yuan , it forms the
basket of currencies which calculate the value of IMF special drawing rights .
The Pound is the fourth most-traded currency in the foreign exchange market and as of 30 September 2019, sterling is also the fourth most-held reserve currency in global reserves
The United Kingdom’s economy is a very strong and developed one. The country’s economy is considered the sixth-largest national economy in the world measured by nominal gross domestic product (GDP), ninth-largest by purchasing power parity (PPP), and twenty second-largest by GDP
per capita , comprising 3.3% of world GDP .
The UK is one of the most
globalized economies, and it is composed of England, Scotland , Wales and Northern Ireland . In 2016, the UK was the tenth-largest goods exporter in the world and the fifth-largest goods importer.
With the service sector, contributing around 80% of GDP. The financial services Industry has made London the second-largest financial centre in the world.
The Britain’s aerospace industry is ranked the second-largest national aerospace industry. While Its
pharmaceutical industry, the tenth-largest in the world.
And to cap it all the country has 26 of the world’s 500 largest companies, 26 headquartered in its territory.
6. Cayman Islands Dollar
1 KYD = 1.22 USD
In 1972 the Cayman Islands dollar was introduced at par with the Jamaican dollar and both currencies remained legal tender on the Cayman Islands.
In 1974, the Currency Law was passed pegging the KYD to the USD at a rate of 1 to 1.227. But this was later reversed in 2013, investing the power to dictate the value of the Cayman Dollars in the hands of the governor.
The island is powered by the tourism sector and the financial services sector , together representing 50–60 percent of the country’s gross domestic product (GDP).
The harvesting of sea turtles to resupply passing sailing ships was the first major economic activity on the islands.
Cayman Island operates a tax-free policy and this has allowed the economy to grow. The tax-free status has attracted numerous banks and other companies to its shores. More than 92,000 companies were registered in the Cayman Islands as of 2014.
Boasting of almost 600
banks and trust companies , with banking assets exceeding $500 billion.
The Cayman Islands is the fifth-largest banking centre in the world, with $1.5 trillion in banking liabilities as of June 2007. It has branches of 40 of the world’s 50 largest banks.
The financial services industry generated KYD$1.2 billion of GDP in 2007 (55% of the total economy), 36% of all employment and 40% of all government revenue.
7. European Euro
1 EUR = 1.10 USD
The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743).
The euro is the official currency of 19 of the 27 member states of the European Union, known as the eurozone. You can go ahead and read about the currencies the euro replaced after you are done with this article.
The euro, which is divided into 100 cents , is the second-largest and second-most traded currency in the foreign exchange market after the United States dollar .
Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members, and by March 2002 it had completely replaced the former currencies.
The EU as a whole is the second wealthiest and second largest economy in the world, below the US by about $5 trillion.
Europe in 2018 had a nominal GDP of $23 trillion (1/4 of the world). Europe’s largest national economies with GDP (nominal) of more than $1 trillion are:
Germany (about $4.0 trillion),
United Kingdom (about $2.8 trillion),
France (about $2.8 trillion),
Italy (about $2.0 trillion),
Russia (about $1.6 trillion),
Spain (about $1.4 trillion).
Slovenia became the first formerly communist nation to adopt the EU currency, the euro, in 2007, followed by Malta and Cyprus in 2008, and Slovakia in 2009.
In the EU, the service sector has the largest share of total output, followed by the industrial sector, while the share of agriculture, fishing and forestry is relatively small.
8. Swiss Franc
1 CHF = 1.03 USD
The Swiss Franc is thencurrency and legal tender of Switzerland and Liechtenstein ; it is also legal tender in the Italian exclave of Campione d’Italia .
In 1798, the Helvetic Republic introduced the franc, a currency based on the Berne thaler , subdivided into 10 batzen or 100 centimes .
Switzerland is one of the world’s most advanced free market economies.
9. American Dollar
1 USD = 0.91 EUR
Do you know that the U.S. dollar is the world’s primary reserve currency .
As of January 31, 2019, there are approximately $1.7 trillion in circulation, of which $1.65 trillion is in the Federal Reserve Notes (the remaining $50 billion is in the form of U.S. notes and coins).
The dollar notes are made from cotton fiber paper. U.S. coins are produced by the United States Mint. U.S. dollar banknotes are printed by the Bureau of Engraving and Printing and are issued by the Federal Reserve .
The United States economy is the world’s largest economy by
nominal GDP and net wealth and the second-largest by purchasing power parity (PPP).
The largest U.S. trading partners are China, Canada, Mexico, Japan, Germany, South Korea, United Kingdom, France, India, and Taiwan.
The U.S. is the world’s largest importer and the second-largest exporter. It has the world’s eighth-highest per capita GDP (nominal) and the tenth-highest per capita GDP (PPP) in 2019.
It has the seventh-highest total-estimated value of natural resources, valued at $45 trillion in 2016. The U.S. has the world’s highest number of billionaires with total wealth of $3.0 trillion.
It is the world’s largest producer of petroleum and natural gas . By 1890, the United States was by far the world’s most productive economy.
Of the world’s 500 largest companies , 121 are headquartered in the U.S. The United State’s total trade amounted to $4.2 trillion in 2018.
10. Seborgan Luigino
The value of the Seborga luigino is pegged to the US dollar at SPL 1 = USD 6.00. And the reason it is not considered the currency with the highest value is because the currency is not recognized beyond its borders.
The Principality of Seborga is a micronation near the border of France and Italy.