Currency is considered the lifeblood of global trade and reflects a country's economic vitality. The strength of a currency is a testament to a country's stability and robust financial health. As it surges, so does confidence in its economy, attracting investments and fostering international partnerships. A strong currency empowers nations to weather economic storms, fortifying their position in the interconnected web of global commerce. The United Nations officially recognises 180 currencies across the world as legal tender. Some currencies are popular and used widely, but these factors do not necessarily determine their value or strength.
Currency strength is a delicate dance of supply and demand, influenced by factors ranging from interest rates and inflation to geopolitical stability.
A robust currency not only enhances a country's purchasing power but also underlines its credibility on the world stage. Investors seek refuge in currencies that stand firm, creating a ripple effect that shapes financial markets worldwide.
Forbes has released a list of 10 strongest currencies in the world (compared the Indian Rupee as well as USD), along with the factors that contribute to their prominence.
The first in the list is the Kuwaiti Dinar, said Forbes. One Kuwaiti Dinar is equal to Rs 270.23 and $3.25. Next comes The Bahraini Dinar, which is valued at Rs 220.4 and $2.65.
Next it the list is Omani Rial (Rs 215.84 and $2.60), followed by Jordanian Dinar (Rs 117.10 and $1.141), Gibraltar Pound (Rs 105.52 and $1.27), British Pound (Rs 105.54 and $1.27), Cayman Island Dollar (Rs 99.76 and $1.20), Swiss Franc (Rs 97.54 and $1.17) and the Euro (Rs 90.80 and $1.09).
Interestingly, the US Dollar is last on the list, with one USD valued at Rs 83.10. Explaining the ranking, Forbes said that US Dollar is the most widely traded currency globally and holds the position as the primary reserve currency. Despite its popularity, it ranks 10th among the world's strongest currencies.
According to Wednesday's exchange rate published on International Monetary Fund's (IMF) website, India ranks 15 with value listed as 82.9 per US Dollar.
Kuwaiti Dinar, which holds the pole position, has consistently ranked as the world's most valuable currency since the time it was introduced in 1960. The reason behind the success of the currency is Kuwait's economic stability, which is driven by its oil reserves and tax-free system.
Forbes also said that the Swiss Franc, the currency of Switzerland and Liechtenstein, is widely regarded as the most stable currency in the world.
The list is based on currency values till January 10, 2024, and has been released with a disclaimer that these values are subject to fluctuation.
