Unless you've been living under a rock, chances are, that you know that the word ‘Tariff’ has taken over the internet, and nobody can stop talking about money. And no, not in the typical "how much are avocados again?" way. Global currency discussion is all over the place due to US President Donald Trump going on a tariff spree, with India and Brasil hitting the highest spot at 50% tariff hike on some imports. This recent development has fuelled a growing interest in BRICS countries attempting to lessen their reliance on the US dollar. Whether or not there will be a new international currency soon, many are left questioning if the dollar is the strongest currency. Or do there exist currencies that are subtly worth more? Well, there are!
In order to understand why some lesser-known ones that are infact stronger currencies than US dollar, let's examine what makes a currency more valuable.
What is a strong currency?
The term "strong" refers to a currency's value in relation to other currencies, particularly the US dollar. Purchasing power and exchange rates are the primary metrics used to determine how much money can truly buy in another nation. Why in relation to the US dollar though? Because for a long time it has been the global reserve currency. US happens to be the biggest economy, and its influence is undeniable. And post the World War 2, American gold reserves and booming economy meant it made more sense internationally to use it as a peg.
Occasionally, the currency is also linked to a nation's economic stability or the amount of foreign exchange reserves it possesses. The interesting part is that not all powerful currencies originate from the largest economies. In actuality, tiny countries with strict monetary rules and oil-rich exports own some of the most valued currencies in the world. What does that mean? Well, size doesn't always matter!
Currencies stronger than USD
Kuwaiti Dinar (KWD)
Kuwait is rich, and that is a very very well known fact. The Kuwaiti Dinar, the most valued currency in the world (about $3.26 USD), is extremely stable and sought-after due to its strategic peg to an unknown basket of currencies, oil wealth, and strict fiscal policies. When you combine low inflation with a sizable sovereign wealth fund, thanks to the exemplary oil reserves Kuwait has got, you get the highest currency in the world.
Bahraini Dinar (BHD)
Bahrain comes a close second. Strong oil and gas earnings, diversification into banking and tourism, and a stable peg to the US currency are the main reasons for the Bahraini Dinar's rise. One of the strongest currencies in the world, it currently stands at about $2.65 USD. Even when the world economy is faltering, it maintains its composure and stability thanks to that carefully calibrated combination.
Omani Rial (OMR)
Oman is a small country in the gulf, rich in oil, and sits on the mouth of the Persian Gulf at the Strait of Hormuz. For the uninitaited, that juicy little chokepoint is through which nearly 20% of global oil passes. In addition to that, Oman has been relatively neutral internationally, and has deep sea ports. Talk about being lucky!
The Omani Rial, which is valued at about $2.60 USD, is strong due to its peg to the US dollar, oil support, and consistent budgetary reforms. It also significantly helps that Oman's cautious economic diversification and conservative policies instill constant confidence in the Rial.
Jordanian Dinar (JOD)
Now this one might shock you. Simply because Jordan isn't a rich country, by any means. Sure there is some potential for minerals like phosphate and potash, but that's got nothing on the loaded neighbours it has. What makes the Jordanian Dinar a stronger currency than US dollar then?
A constitutional monarchy, Jordan's dinar resists the oil-centric trend, trading at around $1.41 USD. While there is elected government, the king wields real power too, and in fact the royal family is deeply respected. Disciplined central banking, a balanced mix of remittances and international aid, and regional stability all contribute to its continued strength. It might not be flashy, but it is resilient and sensible.
British Pound (GBP)
Ah, the currency of the empire on which the sun never sets. GBP in the list of the strongest currencies in the world? After Brexit? Let me explain.
At roughly $1.22 to $1.37 USD, the pound is a heavyweight, classical beauty that sings with centuries of financial heritage, international trust, and institutional tenacity. Despite the turmoil surrounding Brexit, the pound remains strong and fashionable due to Britain's robust financial services industry. And it seems important to mention that it is in fact the oldest currency that is still in use. That, and the history of the British Empire.
Gibraltar Pound (GIP)
As much as Gibraltar has its autonomy, identity, and colonial quirks, it is in fact a British Overseas Territory. Similar to the British pound at par (≆$1.21–$1.37 USD), the Gibraltar pound rides the value wave thanks to its sterling peg, strong financial regulation, and stable tourism sector. Fun fact, you can use the British Pound to pay in this territory, tucked right under Spain.
Cayman Islands Dollar (KYD)
The thing is, KYD's is an artificial strength, but very much intentional. While the Cayman Islands don't have a lot going on for them economically, they still manage to be in the list of currencies stronger than the US dollar. The KYD maintains its strength at around $1.20 USD thanks to its offshore finance status, stable U.S.-dollar peg, and tax-haven appeal. In simple words, tax haven, offshore banking and investment firms.
Swiss Franc (CHF)
If there was a Beyoncé of neutrality, it'd be Switzerland. The rich park their money in this country, which is neither a part of NATO, nor EU. It's in fact been so neutral, it became the top-tier financial hub that could hold its own, even in the World Wars. So, the original worldwide safe haven is the Franc, which is worth between $1.10 and $1.26 USD. Neutrality, banking confidence, and low inflation make it what could easily be said to be the most valuable currency in the world.
Euro (EUR)
The Euro, which is valued between $1.03 and $1.18 USD, gains strength from its representation of the EU, a vast economic union. It remains a significant factor even when crises arise inside the bloc because of its combined financial might, adaptable reach, and unexpected tenacity.
Now, Euro could easily be equivalent to US dollar in terms of trading currencies. It is in fact the second-largest reserve currency in the world. But EU is a group. There are great performers like France and Germany, and then there are places like Greece and Italy, that are riddled with debt. Too many cooks, one pot!
When you’ve got travel plans (and a weak home currency)
If you earn in a stronger currency, say USD, GBP, or KWD, this is your sign to splurge a little abroad. In countries with weaker currencies, your money is royal coins. Think plush resorts, couture finds, or chef ’s-table experiences, all at wallet-friendly prices. But if your home currency is on the weaker side (hello, INR), you're better off choosing destinations where your rupee rules. Think Southeast Asia, parts of Eastern Europe, or even staycations with a twist. Bottom line? Go where your currency gets you more, not less. Because feeling rich isn’t about what you earn; it’s about what you can do with it.
So, which is really the strongest currency in the world?
Value is not solely determined by numbers; it is also influenced by politics, culture, and individual identity. The yen, dinar, or franc are more than just exchange rates when they are strong; they are also indicators of historical resiliency, national policy, and public confidence. To avoid centralised control, some communities even design their own local currencies, giving the concept of money a more culturally distinct feel. Psychology also plays a role: our biases or emotional attachments to a nation might distort our perception of its value.
Essentially, there is no clear answer to this question. Sure, the US Dollar is the reserve currency, but many are valued higher when pegged to it, and now you know!