The most valuable currency in the world in 2568: From resource-rich nation to financial hub

Preface: The Deep Logic of Currency Value

There are over 180 countries and regions issuing currencies worldwide, each with vastly different purchasing power and exchange rates. Interestingly, the nominal exchange rate of a currency is closely related to a country’s economic strength, resource endowment, and political stability. This article will reveal the currencies with the highest exchange rates against the US dollar and the economic stories behind them.

Resource-Driven: The Victory of Middle Eastern Oil Dollars

Kuwait Dinar: The World’s Most Expensive Currency King

Among more than 180 global currencies, Kuwait Dinar (KWD) ranks first with an exchange rate of 1:3.26, making it the highest nominal circulating currency.

This status was not accidental. Kuwait abandoned the Gulf Rupee in 1960 and adopted the Dinar system. The initial fixed exchange rate was linked to the British Pound, later adjusted to peg to the US dollar. Today, KWD maintains a fixed relationship with a basket of currencies.

Kuwait’s economy relies entirely on oil exports—about 3 million barrels per day—ranking as the 10th largest oil producer globally. This provides the country with a steady stream of US dollar income. More importantly, Kuwait has maintained long-term trade surpluses and current account surpluses, with per capita GDP exceeding $20,000, making its economy a Middle Eastern model of stability.

Key Data

• Exchange Rate: 1 KWD = 3.26 USD
• Exchange Rate Regime: Pegged to a basket of currencies
• Supporting Factors: Oil resources + trade surplus

Bahrain Dinar: Stability Representative of the Island Financial Center

Bahraini Dinar (BHD) has been in circulation since 1965, with an exchange rate of 1:2.65, ranking second globally. Both countries previously used the Gulf Rupee, then issued their own Dinar independently, reflecting political evolution in the Middle East.

Bahrain is also an oil exporter, producing about 1 million barrels per day, ranking 21st globally. But what makes BHD unique is its diversified financial ecosystem—serving as a key hub for Islamic finance, attracting significant international capital. Long-term trade surpluses, low inflation (~0.8%), and stable foreign exchange reserves make BHD a symbol of stability in the Middle East.

Per capita GDP also exceeds $20,000, comparable to Kuwait.

Key Data

• Exchange Rate: 1 BHD = 2.65 USD
• Exchange Rate Regime: Pegged to USD
• Supporting Factors: Oil + Islamic financial center status

Omani Rial: One of the Gulf’s Top Three

Omani Rial (OMR) ranks third with an exchange rate of 1:2.60, a stability derived from its fixed peg to the US dollar since 1972. The initial rate was 1 OMR = 2.895 USD, later adjusted to 2.60.

Oman is a relatively low-profile but economically stable Gulf Cooperation Council country. Although producing about 1 million barrels of oil daily, ranking 21st globally, Oman emphasizes fiscal conservatism and long-term accumulation. Recent economic growth is about 4.1%, with low inflation, and continuous current account surpluses. These conservative yet stable policies support the strength of OMR.

Key Data

• Exchange Rate: 1 OMR = 2.60 USD
• Exchange Rate Regime: Pegged to USD
• Supporting Factors: Stable oil exports + fiscal discipline

Non-Oil: Political Stability and Economic Trust Premium

Jordan Dinar: Currency Credit in Economic Difficulties

Jordanian Dinar (JOD) ranks fourth at 1:1.41, quite rare among non-oil countries. Its exchange rate system also stems from a fixed peg to the US dollar.

Unlike the Middle Eastern oil countries above, Jordan’s economic growth is relatively moderate—latest growth about 2.7% YoY, with per capita GDP only $3,891, far below oil-producing nations. Jordan has also maintained a long-term current account deficit. However, Jordan holds international reserves of up to $13.533 billion (data as of late 2023), enough to support its currency credibility.

This reflects a key phenomenon: political stability and international trust can sometimes be more important than economic scale. As a relatively stable actor in the Middle East, Jordan attracts international support.

Key Data

• Exchange Rate: 1 JOD = 1.41 USD
• Exchange Rate Regime: Pegged to USD
• Supporting Factors: Political stability + international reserves

Pound Sterling: The Heritage of a Historical Empire

The British Pound (GBP) ranks fifth with a rate of 1:1.33, dating back to the Anglo-Saxon era. In medieval times, it was anchored to silver value; in the 19th century, it shifted to the gold standard, gradually becoming one of the world’s reserve currencies.

The UK ranks 6th in global economic size, accounting for 3% of global GDP. London remains an unshakable global financial center. The tech industry alone exceeds $1 trillion in scale, ranking third globally (after the US and China). These factors give the pound lasting vitality.

Since shifting to a floating exchange rate in 1973, the pound’s value more reflects market assessments of the UK’s economic fundamentals.

Key Data

• Exchange Rate: 1 GBP = 1.33 USD
• Exchange Rate Regime: Free floating
• Supporting Factors: Financial center + economic strength

Gibraltar Pound and Swiss Franc: Locality and Neutrality Paths

Gibraltar Pound (GIP) has been in circulation since 1934, pegged 1:1 to GBP, so its USD rate is 1:1.29. As a local currency of a British Overseas Territory, GIP is mainly used locally, with GBP also widely accepted. Although limited internationally, GIP represents Gibraltar’s economic autonomy—low taxes, thriving online gaming, shipping, and financial services.

Swiss Franc (CHF) takes a different route with a rate of 1:1.21. Since the 18th century, it adopted a silver standard, later shifting to gold. The Swiss National Bank requires at least 40% gold reserves backing the currency—extremely rare among modern central banks.

More importantly, Switzerland’s permanent neutrality and robust financial system make CHF a typical “safe-haven currency”. During global crises (like the 2008 financial crisis, or the 2023 European banking turbulence), capital floods into Swiss assets, pushing up the franc’s exchange rate, prompting multiple interventions by the Swiss National Bank.

Key Data

• CHF Exchange Rate: 1 CHF = 1.21 USD
• Exchange Rate Regime: Managed float
• Supporting Factors: Gold reserves + Neutral country status + Safe-haven appeal

Cayman Islands Dollar and Euro: Dual Faces of Regional Financial Centers

Cayman Islands Dollar (KYD) has been in use since 1972, replacing the Jamaican dollar, with a fixed rate of 1:1.20 to USD. As a British Overseas Territory, Cayman is one of the world’s largest offshore financial centers. Low tax policies and stable regulation attract global capital, making KYD influential regionally despite limited international use.

In contrast, Euro (EUR) is a global reserve currency. Launched in 1999, circulated since 2002, now used by 20 Eurozone countries. Although initially weaker than the dollar, it reached a high of 1:1.60 before 2008.

Currently, EUR/USD is 1:1.13, still the second-largest global reserve currency. The European Central Bank manages about 21% of international reserves, accounting for 29.31% of IMF’s SDR basket. The strength of the euro reflects Europe’s economic resilience and institutional credibility.

Key Data

• KYD Exchange Rate: 1 KYD = 1.20 USD
• EUR Exchange Rate: 1 EUR = 1.13 USD
• Features: The former as offshore financial currency, the latter as a multilateral reserve currency

The World’s Most Valuable Currencies Ranking Table

Essential Reading for Investors: Currency Value ≠ Investment Value

A common misconception is: the higher the exchange rate, the safer and more worthwhile to hold the currency. In reality, not necessarily.

The reason the Middle Eastern oil countries’ dinars have the highest exchange rates is because these countries have maintained long-term trade and current account surpluses—that is, foreign exchange income exceeds expenditure. But this also entails structural issues associated with currency appreciation, such as over-reliance on a single resource.

In contrast, the pound and euro have slightly lower exchange rates but represent diversified, mature economies. The Swiss franc, though moderate in exchange rate, appreciates during global crises due to its safe-haven attributes.

Advice for Investors:

1. Don’t blindly chase high exchange rates—nominal high does not mean currency strength or safety
2. Assess the underlying economic fundamentals—diversified industries, fiscal discipline, foreign reserves are crucial
3. Consider the exchange rate regime—fixed rates offer stability but may face adjustments; floating rates are more flexible but volatile
4. Pay attention to political and policy stability—as the Jordan case shows, stable policy frameworks can sometimes be more important than economic size

Conclusion

The 2568-year global ranking of the most valuable currencies reflects resource advantages of oil nations, the international status of financial centers, and the enduring influence of historical empires and neutral countries. Choosing which currency to hold is essentially a judgment on the related country’s economic system, political stability, and long-term prospects.