Throughout the world, different countries use different types of legal tender to facilitate financial transactions. The United Nations currently recognizes 180 currencies that are used in 195 countries around the globe. Anyone who has traveled to another country can tell you that you can't simply take currency from one country and use it in another. The value of your money is dependent on the current exchange rate. Various factors can influence the strength of a country's currency, including political stability, inflation, and interest rates. Take a look at the eight strongest currencies in the world.
The first Swiss Franc was introduced in Switzerland in 1850. According to Investopedia, the currency has seen a dramatic rise in value over the past 15 years. In investment terms, the Swiss Franc is considered to be a "safe haven." In simple terms, this means that the currency is expected to retain its value over the long run.
The Swiss Franc is the only Franc still used in any European country. In 2011, the European Union called the Franc a threat to the economy, causing its value to dip. The decision to unpeg the Swiss Franc from the Euro in 2015 shocked investors around the globe and caused the currency's value to take a significant drop. Since 2015, the Swiss Franc's value has rebounded with a current exchange rate of 1.02 Franc to 1 USD as of August 2019.
The Euro is the official currency of the European Union and the second most used currency in the world. Nineteen countries use the European Euro as their official currency, including France, Germany, and Italy. The European Union officially adopted the Euro in 2002. At this time, the currency had a value equivalent to 0.87 USD. It reached a record high value of $1.60 in 2008 during the U.S. financial crisis. In 2019, the Euro gained a value of approximately 1 Euro to 1.11 USD.
Cayman Islands Dollar
The Cayman Islands are a British territory located in the Caribbean. The islands are home to breathtaking scenery and boast one of the strongest currencies in the world. According to OANDA, the islands have the highest standard of living in the Caribbean and the 14th highest GDP per capita in the world. Like US currency, the Cayman Islands features coins valued at 1 cent, 5 cents, 10 cents, and 25 cents. The Cayman Islands dollar is pegged at 1 KYD to 1.2 USD.
British Pound Sterling
The British Pound Sterling, more commonly known as the British Pound, is the oldest existing currency in the world. The pound was first used in England in 1489. Today, the British pound is still used by 13 countries, including the United Kingdom. When the European Union first proposed the Euro in 1997, the United Kingdom declined to make the change and instead chose to stick with the pound. They noted that the Euro did not pass the necessary economic tests for the country to make the switch. In 2019, the British Pound Sterling gained a value of 1 pound to 1.21 USD.
Jordan is one of the most popular tourist destinations in the Middle East. The small country, located east of Israel, attracts thousands of visitors each year. In particular, the historic site of Petra bringing over 780,000 visitors in 2017. The Jordan dinar is the official currency of the country. The dinar was first used in Jordan in 1949, replacing the Palestinian pound. The dinar has consistently been one of the strongest currencies in the world. The Jordan Times attributes this to the fact that the dinar has been pegged to the U.S. dollar for the past 20 years. Jordan is the only country to use the Jordan dinar. The dinar is valued at 1 JOD to 1.41 USD.
The Arabian country of Oman is located southeast of Saudi Arabia and borders the Arabian Sea. The country has seen significant growth in its economy, thanks in large part to their oil supply. The Oman rial is the official currency of the Sultanate of Oman. The Oman rial (OMR) was first used in 1973, replacing the rial Saidi. The rial was pegged to the U.S. dollar at a rate of $2.895 to 1 USD from 1973 to 1985 but dropped to a rate of $2.6008 in 1986.
The small island of Bahrain is located east of Saudi Arabia in the Persian Gulf. The country is home to nearly 1.5 million residents. According to Continental Currency, Bahrain's economy is presently the 10th freest economy in the world. The Bahraini dinar has been the official currency of Bahrain since 1965. Bahrain is the only country to use the Bahraini dinar. While no other country uses the Bahraini dinar, Bahrain accepts the Saudi Riyal in addition to the dinar. The Bahraini dinar is the second strongest currency in the world with a value pegged at 1 BHD to 2.65957 USD.
The Kuwaiti dinar is currently the strongest currency in the world. Kuwait is a small country located between Saudi Arabia and Iraq. Its strong oil supply is often linked to the country's strong economy. The Kuwaiti dinar was first used in 1961 after Kuwait gained independence from the United Kingdom. The Kuwaiti dinar was used in concurrence with the Gulf rupee until 1966 when the country stopped using the rupee.
Over the years, the Kuwaiti dinar has been pegged to several different currencies. From 1975 to 2003, the Kuwaiti dinar was pegged to a weighted basket. From 2003 to 2007, the dinar was pegged to the U.S. dollar. Presently, the Kuwaiti dinar is pegged to an undisclosed basket with a value of 1 KWD to 3.29 USD.