Introduction
In 2024 global economy continued to evolve rapidly. Currency values fluctuate based on multiple factors. Some currencies display exceptional strength and high valuation. This article examines the most valuable currencies as well as the strongest ones.
A currency’s strength is determined by how much you can buy with it. Factors such as supply and demand in foreign exchange markets inflation rates economic growth central bank policies and overall economic stability affect a currency’s value. Even though the US dollar British pound and euro are strong in global trade they are not most valuable when exchanged for Indian Rupee (INR).
In 2024, Kuwaiti dinar became the most expensive currency. It surpassed the US dollar British pound and euro in exchange rate. This change shows how currency values affect global markets.
What are the factors influencing the exchange rate of currencies in the world?
1. Inflation
When a country has low inflation, its currency is usually worth more than other currencies. This means money can buy more goods and services from different countries. In this case, currency appreciates. However, when a country has high inflation, its currency loses value compared to other currencies. In this instance, the currency depreciates. High inflation can harm a country’s economy. It reduces the value of currency and slows down growth.
2. Interest Rates
When a country’s central bank raises interest rates it attracts more foreign investment. This increased demand for a country’s currency tends to drive up its value on the foreign exchange market. On the other hand, when interest rates are lowered country’s assets are less appealing to foreign investors. This causes a decrease in demand for its currency. A subsequent reduction in its value relative to other currencies follows.
In India, the central bank’s interest rate is also called the Bank rate. In the United states it’s called prime rate.
3. Political factors
Political stability government policies and international relations can affect exchange rates of currencies. Political stability can lead to increased foreign investment. This can result in strengthening currency. Government policies such as fiscal and monetary policies also have an effect on exchange rates.
4. Government Debt
A Country having less or low government debt there is a high chance that there’s an increase in the value of currency. Currency’s value appreciates.
5. Other factors
Other factors which will help strengthen an economy’s currency exchange rate are –
a)More exports than imports
The term “more exports than imports” refers to a situation in which a country sells more goods and services to other countries than it buys from them. It is commonly denoted has trade surplus.
b)Government intervention
When a country’s central bank wants to increase value of its domestic currency it sells foreign reserves. The Government then buys currency. This increases domestic currency demand and raises value.
c) Strong performance
Strong performance of the economy in terms of Gross domestic product (GDP) growth.
d) Speculation
If investors want a currency’s value to get increased, they demand or buy that currency more. This leads to appreciating the value of that currency.
Currencies that stand by and possess most of the positive factors stated above are considered to be the most valuable and strongest currencies in the world.
Top 10 Most Valuable and Strongest Currencies in the World in 2024
| Serial No. | Currency | Symbol | INR Value (As of August 8, 2024) | USD Value |
| 1 | Kuwaiti Dinar | 1 KWD | ₹274.35 | 3.27$ |
| 2 | Bahraini Dinar | 1 BHD | ₹222.77 | 2.65$ |
| 3 | Omani Rial | 1 OMR | ₹218.09 | 2.6$ |
| 4 | Jordanian Dinar | 1 JOD | ₹118.45 | 1.41$ |
| 5 | Gibraltar Pound | 1 GIP | ₹106.56 | 1.27$ |
| 6 | British Pound | 1 GBP | ₹106.56 | 1.27$ |
| 7 | Cayman Island Dollar | 1 KYD | ₹100.88 | 1.2$ |
| 8 | Swiss Franc | 1 CHF | ₹97.76 | 1.16$ |
| 9 | Euro | 1 EUR | ₹91.8 | 1.09$ |
| 10 | United States Dollar | 1 USD | ₹83.95 | 1$ |
1)Kuwaiti Dinar (KWD)
The Kuwaiti Dinar (KWD) is currently the world’s strongest and most valuable currency. As of August 8, 2024, the currency value of one Kuwaiti Dinar in terms of Indian Rupees is INR 274.35. Further, 1 KWD equals USD 3.27. 1 USD equals 1/3.27, which equals KWD 0.305.
Looking towards its history and background, KWD was introduced in the year 1961 by the Central Bank of Kuwait. Kuwait is a country in West Asia. It is located in the middle-east on the world’s map.
2)Bahraini Dinar (BHD)
Bahraini Dinar will be the second most valuable currency in the world in 2024. As of August 8, 2024, the currency value of one Bahraini Dinar in Indian rupees is INR 222.77. One Bahraini Dinar equals USD 2.65, and 1 USD equals 0.377. Bahraini Dinar was introduced in 1965. It is issued by the Central Bank of Bahrain and used by the economies of Bahrain. Bahrain, also known as the Kingdom of Bahrain, is an island country in West Asia.
3)Omani Rial (OMR)
The next currency on the above list is the Omani Rial, which is among the valuable and most powerful currencies in the world. As of August 8, 2024, the current price of 1 OMR equals INR 218.09. Moreover, one USD equals 1/2.6 OMR, which equals 0.38 OMR.
The Omani Rial is the Currency of Oman. It is issued by the Central Bank of Oman. In 2023, the Central Bank of Oman bought U.S. dollars at a rate of 0.384 Omani rial and sold them at a rate of 0.385. As of 2024, the Omani rial is ranked as the third-highest-valued currency unit in the world. It follows the Kuwaiti Dinar and Bahraini dinar.
4) Jordanian Dinar (JOD)
The Jordanian Dinar is next on the above list of the most valuable and strongest currencies in the world. Currently, 1 JOD is equal to INR 118.45. Further, regarding U.S. currency, 1 JOD = 1.41 USD. 1 USD = 0.709.
The Jordanian Dinar was introduced in 1950 and has been the Currency of Jordan since then. The central bank of Jordan is the sole issuer of the dinar. It commenced operations in 1964 after the Jordan Currency Board.
The West Bank is a landlocked territory near the coast of the Mediterranean Sea. Jordan shares its border with the West Bank. It widely uses the Jordanian dinar and Israeli shekel.
5)Gibraltar Pound (GIP)
The fifth most powerful currency in the world today is the Gibraltar Pound (GIP). As of August 8, 2024, one GIP equals INR 106.56, 1.27 USD, and 0.79 GIP.
Gibraltar Pound (GIP) is the Currency of Gibraltar. The sovereign state of Gibraltar is the United Kingdom. It is located in British overseas territory and shares its southern part with the Iberian Peninsula.
6) British Pound (GBP)
The British Pound (GBP) was the sixth strongest currency in the world in 2024. It is also known as the Pound Sterling and is the Currency of the United Kingdom. As of August 8, 2024, one British Pound equals INR 106.56. Further, as of the same date, 1 GBP equals USD 1.27. Also, 1 USD equals 0.78 GBP.
The British Pound was introduced 1224 years ago in the United Kingdom. Currently, the Bank of England issues British Pounds. Coins are denoted by the term’ penny’. The Office for National Statistics issues all information related to currency.
7)Cayman Island Dollar (KYD)
The seventh most valuable currency after the British Pound is the Cayman Island Dollar (KYD). It is the Currency of the Cayman Islands. It has the sign CI$ or KYD. One unit of currency can be divided into 100 cents. As of August 8, 2024, 1 KYD is equal to INR 100.88. Further, 1 KYD is also equal to USD 1.2. Decoding in terms of USD, 1 USD is equal to 0.833 KYD.
The Cayman Island Dollar was introduced in 1972 after it separated from the Colony of Jamaica. The Cayman Islands is a British Overseas Territory consisting of Grand Cayman, Cayman Brac, and Little Cayman. George Town, located on Grand Cayman, is the capital of the Cayman Islands.
8)Swiss Franc (CHF)
The Swiss Franc is the eighth most powerful currency in the world in 2024. As of August 8, 2024, the value of one Swiss Franc equals INR 97.76. In terms of U.S. Dollars, one CHF equals USD 1.16, and one USD equals 0.86 CHF.
Swiss Franc, or simply Franc, is the currency legally used in Switzerland and Liechtenstein. The Swiss National Bank issues currency. Coins are issued by the federal mint Swissmint. Switzerland is a landlocked country. It is located in the central west of the European continent. It shares borders with Italy in south. France is on its western border. Germany lies to north, while Liechtenstein and Austria are to the east of it.
9) Euro (EUR)
The ninth most valuable and strongest currency in the world in 2024 is the Euro (EUR). Value in terms of INR for one unit of Euro is INR 91.8. In terms of USD, 1 EUR equals USD 1.09. By reciprocating it, we get a value of 1 USD, i.e. 0.92 EUR.
Euro is the currency of twenty out of twenty-seven member states of the European Union. This group of states is also known as the Eurozone. It is the second most traded currency in the World after U.S. Dollars.
10) United States Dollar (USD)
The U.S. Dollar is the tenth most powerful Currency in World in 2024. To distinguish itself from other dollar denominated currencies, the United States Dollar has been also abbreviated to US$. As of August 8, 2024, 1 USD is equal to INR 83.95. Moreover, doing a reverse of it to get unit of INR that’s equal to USD 0.011.
It is issued by the Federal Reserve of the United States of America. U.S. dollar notes are also called Federal Reserve Notes. They are often called greenbacks. This is because they are mostly green in colour. Federal Reserve System manages monetary policy of United States and serves as country’s central bank.
Frequently Asked Questions (FAQs)
What Happens to U.S. Dollar When Interest Rates Rise?
When Federal Reserve raises federal funds rate interest rates increase making U.S. Dollar-denominated fixed-income securities more attractive to investors worldwide. This usually results in a stronger exchange rate in the favor of U.S. Dollar.
What is the central bank of the U.S. known as?
The Central Bank of the U.S. is known as the Federal Reserve.
What do you mean by Currency appreciation?
Currency appreciation or appreciation of a currency is when the value of it increases with respect to some other currency. In India, there’s a practice to relate INR to USD as the U.S. Dollar is the most traded Currency in the world at present times.
What are the factors influencing an appreciation of a currency?
Currencies get appreciated due to a variety of factors – low inflation, high exports, lower imports, stable government, stable political environment, government intervention, creating demand through speculation.
What do you mean by Currency depreciation?
A currency gets depreciated or devalued when its value decreases in relation to other currencies. Factors like recession, high inflation, imports more than exports, unstable political conditions, and creating more supply through speculation lead to currency depreciation.
Which is the most stable currency in the world in 2024?
The Swiss Franc (CHF) is the most stable currency in the world in 2024.
