Travelling to a foreign land is always exciting! But sometimes, when I look at the exchange rates of some of the local currencies, I get appalled (or ecstatic) about how expensive (or cheap) things can be in another country.
Forbes has released its report on the world's strongest currencies in Jan 2024. And surprise!!!! It's not US Dollar, or even Euro that takes the top spot.
Which Countries Have the Strongest Currencies?
It's the Middle East which shines on this list of strongest currencies.
1. Kuwait:
The strongest currency is the Kuwaiti Dinar (1 Kuwaiti Dinar= Rs. 270.20). It has been consistently ranked as the world's most valuable currency since 1960.
6. UK:
Similar to the Gibraltar Pound, the British Pound(Rs. 105.48) comes sixth in the list
7. Cayman Islands:
Seventh in the top ten strongest currencies is Cayman Island Dollar (Rs. 99.86).
8. Switzerland:
The Swiss Franc (Rs. 95.59) is at 8th position. However, it is ranked as one of the most stable currencies.
10. USA:
The 10th spot is help by US Dollar (Rs. 83.06).
So, What makes a currency strong?
The report says that the strength of a currency is determined by the number of goods and services which can be bought by 1 unit of the national currency and foreign currency obtained in exchange.
The value or strength of the currency is not determined by its popularity or use. So, while the USD remains the most popular currency, but it is not the strongest in terms of this report
What contributes to the strength of Kuwaiti Dinar?
The Kuwaiti Dinar has been consistently ranked as the world's strongest currency since it was introduced in 1960. This can be attributed to Kuwait's economic stability driven by its oil reserves and tax free economy.
What does this ranking mean for the US Dollar?
Even though the US Dollar ranks last(10th) in the list, it is still the most widely traded currency globally, and holds its position as the primary reserve currency.
Where is India ranked?
According to IMF data on exchange rates(date 17th Jan 2023), India ranks 15th in the list.
So now you know the most expensive currencies to buy!! Plan a trip to some of these places to get a taste of the opulence.
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