World’s Most Valued Currencies

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Before the emergence of currency, the means of buying and selling was trade by barter system and this system was backbreaking because buying and selling was done based on an estimated value. The real value for the goods traded was not ascertained. Traders were either given more and taking less or taking less and giving more hence the need for a means of payment with a real value to harness and improve the buying and selling process. The first ever currency created was metal money (coin) in China, it dates back to 1000 BC.

Initially they were produced from sealed pieces of treasurable metals like bronze and copper but as time passed they were evolved and produced from silver and gold. The invention of the coin made buying and selling easy by enabling people to pay for goods by the number of coins rather than the weight of the goods.

The thought of carrying heavy bags of coins from one destination to another to purchase goods and services was laborious and discouraging, this gave rise to the early Chinese rulers considering the idea of keeping their heavy coins back in the palace while issuing IOU certificates on paper for long-distance trading. Despite the fact that the paper had no intrinsic value, people trusted that it was worth what it is said to be worth, and they could always exchange it for gold, silver, and the coins it represented. This led to the invention of paper money which is generally accepted today as a legal tender.

The moment you hear about the most valued currency in the world, certainly, your first option will be the US Dollar, pound, or euro. This is tricky because the aforementioned currencies are not included in the top five most-valued currencies worldwide but they could top the list of the most popular and generally accepted currencies in the world.

The value of a country’s currency is determined based on its value when converted to another country’s currency. For the purpose of this article, the US Dollar will be used as a case study as it has maintained its position as the primary reserve currency on the world map.

The ranking of the most valued currencies relative to dollar conversion is as follows:

1. Kuwaiti Dinar (KWD)

Between Iraq and Saudi Arabia, there is a small country known as Kuwait and this country happens to be the country with the most valued currency in the world. The Kuwaiti dinar is the official currency used for all monetary transactions in Kuwait and the wealth of this country has been driven tremendously by the high rate of oil exportation.

1 KWD =3.26 USD

2. Bahraini Dinar(BHD) 

The large exportation of oil has contributed immensely to the economic growth of the country thus landing them as the second most valued currency in the world.

Bahrain is a small island country in the Persian gulf that is situated between Saudi Arabia and Qatar, the Bahraini Dinar is the only official means of payment that is accepted in Bahrain and cannot be used in any other country. Before 1965, the currency they used was Gulf Rupee before the Bahraini Dinar originated.

 1 BHD =2.65 USD

3. Omani Rial(OMR)

The Omani Rial has been ranked as the third most-valued currency in the world. Omani Rial is the currency that is generally in use as a legal tender in Oman. Oman is an oil-producing country and this has elevated the country’s currency value.

1 OMR =2.60 USD

4. Jordanian Dinar(JOD)

The Jordanian Dinar has taken the 4th position in the world’s most-valued currency. It is the official currency of Jordan. The reason the Jordanian Dinar is so valuable despite not being very popular is that the exchange rate does not fluctuate, it is fixed. Jordan’s economy does not depend solely on oil like other countries, its economy is diversified in several other sectors 

 1 JOD =1.41 USD

5. Caymanian Dollar (KYD)

The Caymanian Dollar is ranked as the 5th highest currency. It became the official currency for the Cayman island in 1972 after it replaced the Jamaican Dollar 

1 KYD =1.21 USD

6. British Pound(GBP)

The GBP or pound sterling is the official currency of Great Britain and some other countries like South Georgia, Jersey, Guernsey, etc, it is one of the oldest currencies that are still in existence and in use. The pound sterling is highly placed globally as a result of its impact on trade and financial activity

1 GBP =1.21 USD

7. Swiss Franc(CHF)

The Swiss Franc has secured the 8th position in the world’s most valued currency as a result of its high level of economic growth over the years and its debt level is at the barest minimum. The Swiss Franc is considered one of the oldest currencies still in use since it originated in 1850. It is the official currency of Switzerland and Lichtenstein.

1 CHF =1.04 USD

8.  Euro(EUR)

The euro, which originated in 1999 is one of the youngest currencies in the world. 

The euro is the official currency that is generally accepted as legal tender in the 19 states of the European Union.

Currently, the euro is one of the most populous currencies amongst other nations and is now the most sought-after currency worldwide. Several countries have pegged their nation’s currency to the European currency(Euro). Euro is in great demand for distribution and reserve purposes. 

1 EUR =1.02 USD

9. US Dollar 

The moment the Dollar is mentioned to you, the first thing that comes to mind will be the US Dollar but the truth is, Dollar is used by some other countries, not just the US. It is used by the 5 US territories and 11 other nations as the generally accepted means of payment. The US Dollar has remained the reserve currency of over 60 countries as a result of its weight in the economical and political sectors globally. A larger percentage of the USD in circulation is used outside the US. The US Dollar ranks 1st in the most traded currency. The popularity of the US Dollar supersedes its value.

10. Canadian dollar(CAD)

The Canadian dollar, also called ‘loonie’ is the official currency of Canada. It is ranked 10th among the world’s most-valued currencies. The Canadian dollar is a popular currency worldwide and is held as an exchange reserve as a result of the country’s political and economic stability.  Since its introduction in 1858, all monetary transactions have been made in the $CAD currency. Canada is not the only country that uses the Dollar as a means of exchange. The reason the $CAD symbol was proposed is so it can be distinguished from others. 

1 CAD =0.78 CAD

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