The strongest currency in the world at the time of publishing this article is the Kuwaiti dinar.
In this article, we’ll share everything you need to know about the dinar, including why it is the strongest currency in the world.
This article is part of our free series on managing money abroad and opening a foreign currency account.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Strongest Currency in the World
- Why Is the Kuwaiti Dinar the Strongest Currency?
- What Other Countries Have the Strongest Currency?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Strongest Currency in the World
The strongest currency in the world in terms of foreign exchange rates and overall currency rankings is the Kuwaiti dinar. The dinar has the currency symbol د. ك, and ISO 4217 Code KWD trades at 1 KWD to 3.25 USD.
Underlying the dinar’s strength is Kuwait’s economic stability, more specifically the State of Kuwait’s oil reserves. Kuwait has the seventh largest oil reserves in the world, following Venezuela, Saudi Arabia, Iran, Canada, and Iraq.
And, while many of these countries (not including Saudi Arabia and Canada) have struggled in terms of foreign policy, economic and financial prosperity, and development, Kuwait has become a global currency power.
KWD was introduced in 1961 to replace the Gulf rupee. The dinar was the official currency of Kuwait until Iraq invaded and declared it invalid, forcing a 1:1 exchange for Iraqi dinar.
During the invasion and occupation of Kuwait, large quantities of banknotes were stolen. Following liberation, the Central Bank of Kuwait issued a new series of Kuwaiti dinar notes, demonetizing the old currency and any currency that was stolen.
Why Is the Kuwaiti Dinar the Strongest Currency?
The Kuwaiti dinar is the strongest currency in the world due to the underlying economic conditions in the country and its vast oil reserves. These factors lead to a significant balance-of-payments surplus annually. For example, in the last five years, balance-of-payments have ranged from a surplus of USD 22 billion to USD 63 billion, according to the World Bank.
Kuwaiti Dinar (KWD) vs United States Dollar (USD)
Over the last ten years, the Kuwaiti dinar (KWD) has been stronger in terms of exchange rate than the United States dollar (USD). In fact, ten years ago, the dinar was at its strongest, trading at roughly 3.56 USD to 1 dinar.
However, since mid-2014, the dinar has lost value against the global reserve currency, falling to a trading range between 3.16985 USD to 1 KWD and 3.25882 USD to 1 KWD.
Exchange Rate of Kuwaiti Dinar
Over the last five years, the value of one Kuwaiti dinar to US dollars has ranged from a low of 3.16985 and a high of 3.33273. That said, in more recent years the value of one Kuwaiti dinar has been stable at approximately 3.25 USD.
What Other Countries Have the Strongest Currency Options?
Other countries that also have strong currency options include Bahrain, Oman, Jordan, the United Kingdom, the Cayman Islands, and Switzerland. Along with Kuwait, these six currencies make up the seven strongest currencies in the world in terms of foreign exchange rates.
If you want to know what the currency is in Greece, China, Ireland, Canada, or any other countries, we have you covered.
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Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into the strongest currency in the world. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Which Country’s Currency is Highest in Value?
The country with the currency that is the highest in value in terms of exchange rate is Kuwait. The Kuwaiti dinar has been the strongest currency in the world since 2021.
What Are the 3 Strongest Currencies In the World?
The three strongest currencies in the world are the Kuwaiti dinar, the Bahraini dinar, and the Omani dinar.
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