This is a list of 10 strongest currencies in the world as of 2020. The strength of a currency is basically the strength of the economy of the country that powers that currency as well as the demand for the currency in the world. A strong currency’s value doesn’t fluctuate easily in the exchange rates.
Here are some of the factors which determine the strength of a currency :
1.Inflation Rate of a country – Countries with low inflation rates have strong currencies.
2. Interest rates of a country – Countries with higher interest rates tend to have strong currencies because higher interest rates generate more profit for lenders as well as attracting foreign capital.
3. Stability of a country- Politically and economically stable countries attract investors which play a major role in the country’s currency exchange rate.
4. Supply and Demand of a country’s products- When foreign countries buy a country’s products, there is demand for its currency i.e If a country’s goods are relatively cheap, foreign countries will tend to buy those goods. In order to buy those goods, they will need to buy the country’s currency. Countries with the lowest price levels will tend to have the strongest currencies.
5. Country’s monetary policy – Countries with strict (hard) monetary policies decrease the supply of their currency which makes it appreciate in the exchange rates.
Below is a list of 10 countries with the strongest currencies in the world as of 2020 with their respective exchange rates.
|Country Currency||Exchange Rate in US Dollars|
|1||Kuwaiti Dinar||1 Kuwaiti Dinar equals 3.17 United States Dollar|
|2||Bahraini Dinar||1 Bahraini Dinar equals 2.64 United States Dollar|
|3||Omani Rial||1 Omani Rial equals 2.60 United States Dollar|
|4||Jordanian Dinar||1 Jordanian Dinar equals 1.41 United States Dollar|
|5||Great Britain Pound||1 Pound sterling equals 1.19 United States Dollar|
|6||Gibraltar Pound||1 Gibraltar Pound equals 1.19 United States Dollar|
|7||Caymanian Dollar||1 Cayman Islands Dollar equals 1.19 United States Dollar|
|8||Euro||1 Euro equals 1.08 United States Dollar|
|9||Swiss Franc||1 Swiss Franc equals 1.02 United States Dollar|