:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1395300750-588ece225ced464d860ef1e2b5e3763d.jpg "A person at a currency exchange handing over a small stack of bills.")
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While the U.S. dollar (USD) dominates currency markets—it’s long been the most popular for foreign governments to hold—it’s not the most valuable. That honor goes to the Kuwait dinar, worth $3.24, putting it ahead of the dollar, euro, Japanese yen (JPY), and all the other currencies that are far more often found in financial news headlines.
Below, we take you through the five most valuable currencies and the mix of natural resource wealth and other economic reasons that got them to the top.
Key Takeaways
- The strongest currency worldwide is the Kuwaiti dinar, which fetches about $3.24 USD on the foreign exchange market.
- While reserve currencies like the dollar and euro dominate global trade, that doesn’t make them the most valuable.
- A strong currency isn’t always an economic advantage—it can make exports and tourism more expensive.
The World’s Most Valuable Currencies
1. Kuwaiti Dinar (KWD): $3.24
The Kuwaiti dinar is the world’s most valuable at about $3.24 (all data as of Jan. 10, 2025), and it’s ranged between $3.12 and $3.30 over the past year.
Kuwait has a strong economy with an unemployment rate of about 2%. Its primary export is oil, the focus of most of its economic activity.
2. Bahraini Dinar (BGD): $2.65
The Bahraini dinar is worth $2.65 and has traded between $2.54 and $2.65 over the past year. The BGD’s value is so stable because it’s officially pegged to the U.S. dollar at a rate of 2.659 to one.
Bahrain’s economy is more diverse than some other nations on this list, with significant economic activity in banking, finance, and tourism, along with the oil industry.
Many high-value currencies peg their value to the U.S. dollar—meaning their central banks keep their exchange rates fixed at specific ratios no matter the market conditions.
3. Omani Rial (OMR): $2.59
Like Bahrain, Oman pegs its currency to the U.S. dollar. The official peg rate is 2.60 to one, but the rial can trade slightly above or below that. This past year, it’s ranged in the currency markets between $2.49 and $2.60.
Oman’s economy is largely reliant on oil, though, like its neighbors, it’s been working to diversify into new sectors.
4. Jordanian Dinar (JOD): $1.41
Jordan is the outlier in this list. It’s resource-poor and has also been facing significant economic challenges from a massive influx of Syrian refugees (now 12% of the country’s population), climate change, and regional chaos in recent years.
The country has pegged its currency to the USD since the mid-1990s—the official rate is 1.41 to one. Jordan’s economy is built on tourism and a significant amount of direct foreign aid, including more than a billion each year from the U.S.
A high exchange rate doesn’t tell the whole story of a currency’s global influence. For example, despite being outranked in value by several others, the U.S. dollar is clearly the most powerful.
5. British Pound (GBP) = $1.23
The British pound‘s value is built on centuries of economic influence and London’s role as a global financial hub. Despite challenges from Brexit and significant economic headwinds in recent years, the pound is supported by the U.K.’s diverse economy and strong financial services sector.
What Makes a Currency Valuable?
Factors in a currency’s value include its supply, interest rates, and inflation—it becomes more valuable when each is scarcer. It helps, too, if it’s backed by higher interest rates.
However, the biggest reasons are found in the broader economic picture: political stability attracts foreign investors, natural resource wealth drives international demand, and monetary policies can directly influence exchange rates when a country’s central bank directly intervenes in global exchange markets.
Pros
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Lower import costs for businesses and consumers
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Attracts foreign investment because of stability
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More purchasing power for foreign transactions
Cons
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Makes exports more expensive, driving down demand.
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Higher costs for visitors can cut into tourism
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May decrease domestic manufacture’s competitiveness abroad
The Bottom Line
While the Kuwaiti dinar ranks the highest in value worldwide, the real story lies in how these nations maintain their currency values. The Middle Eastern countries above have leveraged their oil wealth and dollar pegs to create extraordinarily stable currencies, while the British pound leans on its place as a financial powerhouse and its economic diversity.