Top 10 strongest currencies in the world

The US dollar may be the world's most widely used currency, but it's not the most valuable. In fact, there are several other currencies around the world that trade at a higher value against the Aussie dollar. Some of them are well known, others you've probably never heard of.

Top 10 strongest currencies in 2023:

1. Kuwaiti dinar (KWD)

1 KWD = $4.94 AUD

The Kuwaiti dinar is the strongest currency in the world. The national currency of Kuwait was first launched in 1961 when Kuwait gained its independence from the UK. Its value was at first pegged to the British pound but it is now linked to a basket of currencies.

To find out why it's so valuable, you only need to look at Kuwait's location on the Persian Gulf. Sandwiched between Iraq and Saudi Arabia, Kuwait is an oil-rich nation and one of the world's 10 largest oil exporters, and that's why the dinar is in such high demand.

2. Bahraini dinar (BHD)

1 BHD = $4.04 AUD

We don't have to travel all that far from Kuwait to find the world's second most valuable currency. The island nation of Bahrain is also situated on the Persian Gulf and has a population of 1.4 million people.

But while the country may be small in size, its official currency, the Bahraini dinar, trades at four times the value of the Aussie dollar. The dinar is pegged to the value of the US dollar (1 BHD = 2.659 USD) and oil and gas industries are major drivers of the local economy. The country's largest exports are refined petroleum, raw aluminium and iron ore.

3. Omani rial (OMR)

1 OMR = $3.96 AUD

Next on our list of the world's strongest currencies is the national currency of the Sultanate of Oman. Located in the southeast of the Arabian Peninsula, Oman is home to 4.5 million people.

The rial was launched in the 1970s and is pegged to the value of the US dollar (1 OMR = 2.6008 USD). Once again, Oman is another oil-rich nation and oil revenues have been a major driving force behind the strength of its economy. The country's strategic location on major trade routes has also played a part, and could be a crucial factor in years ahead as Oman attempts to reduce its reliance on the oil industry.

4. Jordanian dinar (JOD)

1 JOD = $2.15 AUD

Launched in 1950, the Jordanian dinar is pegged to the value of the US dollar (0.709 JOD = 1 USD) to provide economic stability.

Unlike the other nations we've already mentioned, Jordan is far less dependent on oil and gas exports and actually has few natural resources. However, Jordan is home to world-famous tourist sites and is generally seen as a stable country in a region of the world often known for unrest.

5. British pound (GBP)

1 GBP = $1.91 AUD

It comes as no surprise to see the British Pound listed among the world's most valuable currencies. With a history dating back to the 8th century, the Pound is the oldest currency still in use anywhere in the world.

It's one of the most commonly traded currencies on global markets and has been a floating currency (not pegged to the value of other currencies) since 1971. The UK has the sixth largest GDP in the world, with its economy dominated by the services sector.

6. Gibraltar pound (GIP)

1 GIP = $1.91 AUD

The British Overseas Territory of Gibraltar is located on the south coast of Spain. And while British pounds issued by the Bank of England are accepted as legal tender in Gibraltar, the territory also has its own currency: the Gibraltar pound.

The GIP is pegged to the value of the GBP at a 1:1 ratio.

7. Cayman Islands dollar (KYD)

1 KYD = $1.83 AUD

Another British Overseas Territory, the Cayman Islands are well known as a tax haven, with more than 115,000 companies registered there. But the islands' official currency, the Cayman Islands dollar, is also one of the strongest currencies in the world.

Introduced in 1972, the KYD is pegged to the US dollar at a rate of 1 KYD = 1.20 USD.

8. Swiss franc (CHF)

1 CHF = $1.73 AUD

The Swiss franc has a reputation around the world as a safe-haven currency, and for good reason. Switzerland is a wealthy country known for its economic and political stability, and it has one of the highest levels of per capita GDP of any country around the globe.

Introduced in 1850, the franc is legal tender in Switzerland and Liechtenstein. Its reputation for stability also makes it one of the most traded currencies in the world.

9. Euro (EUR)

1 EUR = $1.64 AUD

The Euro is the official currency of 20 countries in the European Union with a combined population of 346 million people. Germany has the largest economy of the Eurozone countries, followed by France and Italy.

The Euro is a free-floating currency that was launched in 1999 but wasn't in physical circulation until 2002. Today it is the second most traded currency in the world and a popular reserve currency with central banks around the globe.

10. US dollar (USD)

1 USD = $1.52 AUD

Last but not least among the world's strongest currencies is the almighty dollar. Introduced in 1792, the US dollar is the most commonly used currency in the world. It's the most popular reserve currency with central banks around the world, and the most traded currency in the world.

The USA has the world's largest economy, with a GDP of US$25.46 trillion in 2022. The US dollar is not just accepted as legal tender in the USA either, as you'll also find it used in countries like Ecuador, Zimbabwe and Panama.

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FAQs

• What is the weakest currency in the world?

  The weakest currency in the world is the Venezuelan Bolivar, which as of 30 August 2023 was worth 0.00000047708408 AUD. The next two weakest currencies are the Iranian Rial and the Vietnamese Dong.

• What is the safest currency?

  The Swiss Franc is widely considered to be the safest currency in the world. The currency of Switzerland is seen as a safe haven due to Switzerland's wealth, strong economy and low debt.

• What makes the US dollar so powerful?

  The US dollar is so powerful because the United States has the world's largest economy. The dollar is the world's reserve currency and is also widely used around the world as an official currency in multiple countries, while other countries link the value of their own currency to the US dollar.

Written by

Tim Falk

Writer

Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio