5 Strongest Currencies in the World in 2024

1. U.S. Dollar

The U.S. Dollar, or the USD, is the strongest currency in the world. The currency has universal recognition and is the most traded currency in the world. This developed mostly after the end of the second world- war when US held about 50% of the global economic output and therefore, countries started using dollars to cut back on the transaction cost.

85% of all Forex trade is carried out in the US dollar with a volume of about $6.6 trillion. According to the International Monetary Fund (IMF), 59% of the global foreign reserves in central banks of various countries are kept in USD. This has made the dollar extremely significant on the financial market, especially banking. World Bank and IMF both offer loans worldwide in dollars and foreign and corporate bonds are usually issued in dollars as well.

The currency has shown stability and liquidity in face of financial distress. Some countries have pegged the values of their currencies to the U.S. Dollar, including Saudi Arabia, Qatar, the United Arab Emirates, and Hong Kong. Seven countries, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, East Timor, and Zimbabwe even use dollar as than their own currencies.

Disclosure: None. You can also take a look at Countries by GDP: 30 Largest Economies in the World and 15 Biggest Cryptocurrency Exchanges in the World.