As everyone knows, exchange rates vary dramatically from country to country, especially when compared to countries with the most expensive currency in the world. These nations boast a strong currency for several reasons, yet due to the complexity of the matter at hand we will not dwell on this issue. One thing however must be taken into account: a strong currency is not necessarily an indicator of solid economic performance. Hence, despite its relatively high value, the most expensive currency in the world might not represent the best investment option.
Much like the 10 most expensive countries to fly to, which we presented in a previous post, the countries with the highest exchange rates are constantly changing. A country might have the most expensive currency in the world today, but suffer a drastic loss of value in the future. In addition to this financial uncertainty, having a high exchange rate is often a disadvantage, especially if the nation at hand relies heavily on exports. As the price of the national currency increases, so does the value of the goods produced, making it hard to compete in international markets. Nevertheless, there are some exceptions to this rule, such as when the commodity at hand is rare and demand is high.
Although the US dollar is probably the most common currency for international trade, it is not as highly valued as one would expect. In fact, some of the countries mentioned in the following list of the most expensive currency in the world, have a far higher exchange rate, sometimes doubling or tripling that of the US dollar. So without going into further detail, let us take a closer look at these currencies and find out how much they are really worth.
10. Swiss Franc (CHF)
Switzerland is not only one of the wealthiest countries in the world, but also one of the most stable. Although the Swiss have a high exchange rate compared to the US dollar, their high-tech goods are valuable enough to be exported all over the world.
The Swiss may boast the unofficial financial capital of the world, but their currency is only the tenth most expensive currency in the world. Keep reading to check out the nine that beat it.
9. Cayman Islands Dollar (KYD)
The Cayman Islands are world-renowned as a tax-free financial center, housing hundreds of banks, hedge funds, and insurance companies. Thanks to extensive banking services, the Cayman Islands Dollar is worth around US$1.22.
8. Azerbaijani Manat (AZN)
Finding the Azerbaijani Manat on this list is certainly surprising, yet the official currency of this Asian nation is actually around 25% more expensive than the US dollar. Despite what some might think, the local economy is actually quite strong, and unemployment low.
7. European Union Euro (EUR)
The European Union might have suffered some financial setbacks in the past years, yet the Euro is still one of the strongest currencies in the world. Much of the Euro’s strength is derived from the fact that it is the official currency of 17 countries, include several economic powerhouses.
6. Jordanian Dinar (JOD)
It is quite difficult to explain the high value of the Jordanian Dinar, since the country is not particularly strong economically, and lacks crucial resources, such as oil. Nevertheless, 1 JOD is worth around US$1.41, making it one of the most expensive currencies in the world.
5. UK Pound Sterling (GBP)
The British Pound Sterling dominated international markets for decades before giving up its role as the most-traded currency to the US dollar. However, the official currency of the UK is by no means weaker, trading at US$1.62 per Pound Sterling.
4. Latvian Lats (LVL)
Despite the fact that Latvia introduced the Euro in January of 2014, we still thought it was worth mentioning their former currency in this list. After all, it was trading at almost double the value of the US dollar!
3. Omani Rial (OMR)
The official currency of Oman is tied to the US dollar, pegging the value of 1 Omani Rial to US$2.60. Thanks to its strategic location, Oman has developed a solid economy and a high level of human development.
2. Bahraini Dinar (BHD)
The economy of Bahrain consists mostly of oil production and refinery. Thanks to huge exports relative to its size, this small nation’s official currency is the second most expensive in the world, trading at US$2.65 per Bahraini Dinar.
1. Kuwaiti Dinar (KWD)
The most expensive currency in the world belongs to Kuwait, a tiny nation with huge wealth. Thanks to huge oil exports and a fixed exchange rate, a single Kuwaiti Dinar will fetch you (or cost you) around US$3.50.
