• Wednesday, April 24, 2024
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Top 10 strongest currencies in the world with their GDPs

Top 10 strongest currencies in the world with their GDPs

Strong currency does not translate to huge Gross Domestic Product (GDP) as GDPs are measured in terms of productivity, however, in terms of international trade, the US dollar is considered the most powerful, and even the most traded currency by some margin.

But surprisingly, of the over 180-odd traditional recognised “fiat” currencies used as legal tender worldwide, the “greenback” does not rank the strongest.

According to Forbes, the Kuwait Dinar, a currency spent in Kuwait comes first as the most valuable currency in the world with a GDP of $106 billion while the US dollar stands as the 10th strongest currency even as the United States economy is over 200 times bigger.

Forbes analysed the strongest currencies, utilising the measure of how many units of foreign currency can be obtained in exchange for one US dollar. The exchange rates utilised in this assessment were derived from their currency converter, which relies on data sourced from Open Exchange.

Here are the top 10 currencies and their corresponding GDPs as of March 7

Kuwaiti Dinar (KWD) Kuwait

With a GDP of $106 billion, the Kuwaiti Dinar boasts as the strongest currency in the world, with an exchange rate of 1 Kuwaiti Dinar buying 3.25 US dollars. This valuation demonstrates Kuwait’s robust economic fundamentals, driven by its substantial oil reserves and prudent fiscal policies.

Bahraini Dinar (BHD) Bahrain

Having 38.87 billion as its economic output, Bahraini Dinar comes second, with an exchange rate of 1 Bahraini Dinar buying 2.65 US dollars. Bahrain’s economic strength is rooted in its diversified economy, with a focus on finance, oil, and tourism. The country’s strategic location in the Gulf region also contributes to its currency’s resilience.

Omani Rial (OMR) Oman

In the third position is the Omani Rial, valued at 1 Omani Rial buying 2.59 US dollars. Oman’s currency strength is bolstered by its stable macroeconomic environment, prudent fiscal policies, and a thriving oil and gas sector. The middle-east nation boasts 88.19 billion as its national income.

Jordanian Dinar (JOD) Jordan

Claiming the fourth position is the Jordanian Dinar with an exchange rate of 1 Jordanian Dinar buying 1.41 US dollars. Jordan’s currency strength reflects its efforts to maintain a stable economy despite regional challenges. Sound economic policies and international support contribute to the resilience of the Jordanian Dinar. The country’s GDP stood at $45.74 billion as of 2021.

British Pound (GBP) and Gibraltar Pound (GIP) Britain and Gibraltar

Sharing the fifth position are the British Pound and the Gibraltar Pound, both with an exchange rate of 1 Pound buying 1.27 US dollars. The United Kingdom’s strong and diverse economy, coupled with Gibraltar’s strategic financial services sector, cement their positions among the world’s strongest currencies. While Britain’s economic output stands at $3.131 trillion, Gibraltar’s economy boasts of $2.988 billion.

Cayman Islands Dollar (KYD)

The Cayman Islands Dollar claims the seventh spot, with 1 Cayman Islands Dollar buying 1.20 US dollars. As a financial hub, the Cayman Islands’ currency strength is influenced by its status as an international banking and investment destination. The British overseas territory has $5.898 billion as its GDP.

Swiss Franc (CHF) Switzerland

The Swiss Franc secures the eighth position, with an exchange rate of 1 Swiss Franc buying 1.13 US dollars. Switzerland’s $800.6 billion economy, low inflation, and reputation for financial stability contribute to the strength of the Swiss Franc.

Euro (EUR)

The Euro takes the ninth spot, with 1 Euro buying 1.10 US dollars. Despite challenges within the Eurozone, the Euro remains a formidable currency, supported by the economic might of its member countries.

US Dollar (USD)

Dollars

In the United States, having $23.32 trillion as its GDP, the US dollar ranks as the 10th strongest currency, maintaining parity with itself. While the US dollar is a global reserve currency, its position in the top 10 highlights the strength of other currencies in the world.