Globally, 180 currencies are recognised as legal tender. All have different values or strengths, which, in turn, define their exchange rates. In this article, we talk about what the strongest currencies in the world will be in 2024 and share tips on how to take advantage of those.
What is the strength of a currency?
From an economic point of view, a currency’s strength is its purchasing power compared to other currencies. Many factors make a strong currency. In the world of current economic volatility, these include reserves held by the national central bank, fiscal policies, foreign exchange trading volume and availability, inflation, political and financial stability, etc. Currency exchange rates are of great importance for globetrotters and expats. Knowing what the strongest currencies in the world are, they can manage their finances more effectively. For international money transfers, they would check the exchange rates applied by various providers and select the one with the most favourable conditions. For example, Profee offers top exchange rates on the most traded, strong currencies in the world, which is why many of the expats based in Europe use it as their go-to solution when sending money overseas.
What are the strongest currencies in the world in 2024?
According to Forbes’ analysis, currently the following ten are considered the strongest currencies globally.
| Position | Currency | Country | Code |
|---|---|---|---|
| 1 | Kuwaiti Dinar | Kuwait | KWD |
| 2 | Bahraini Dinar | Bahrain | BHD |
| 3 | Omani Rial | Oman | OMR |
| 4 | Jordanian Dinar | Jordan | JOD |
| 5 | British Pound Sterling | United Kingdom | GBP |
| 6 | Gibraltar Pound | Gibraltar | GIP |
| 7 | Cayman Islands Dollar | Cayman Islands | KYD |
| 8 | Swiss Franc | Switzerland, Lichtenstein | CHF |
| 9 | Euro | 20 Eurozone countries | EUR |
| 10 | United States Dollar | United States, British Virgin Islands, Ecuador, El Salvador, Micronesia, Puerto Rico, etc. | USD |
Let's look at the influences affecting these the most, making them the strongest currencies in the world. But before that, read our article if you want to learn more about currencies' symbols.
1. Kuwaiti Dinar (KWD)
The dinar became Kuwait’s official currency in 1961, replacing the Gulf rupee, and is the strongest currency in the world. Initially, it was pegged to the British pound, but today, it is an undisclosed basket of currencies. Kuwait holds the world’s sixth-largest oil reserves, which, together with the strict policies regulating the cross-border flow of the dinar, helped establish it as the strongest currency in the world.
2. Bahraini Dinar (BHD)
Bahrain is a small island country in the Persian Gulf with a high-income economy. It is a significant exporter of hydrocarbons and has been developing its banking, financial, and tourism sectors. The Bahraini dinar, therefore, will be the second-strongest currency in the world in 2024. Launched in 1965, it was pegged to the pound sterling, but today, it is the U.S. dollar.
3. Omani Rial (OMR)
Like the first two countries on the list, Oman is a high-income economy that relies heavily on oil exports. It has been one of the fastest-growing Gulf economies, partially thanks to its privatisation and Omanisation (replacing expat employees with locals) policies. Since 1972, when the modern Omani rial entered circulation, it has been pegged to the U.S. dollar and is the third-strongest currency in the world today.
4. Jordanian Dinar (JOD)
Another Middle Eastern economy, Jordan, is less rich in hydrocarbons but is considered an emerging knowledge economy.
The Jordanian dinar, introduced in 1950, is also among the strongest currencies in the world in 2024. Officially, it has been pegged to the IMF's special drawing rights, but its basis is the U.S. dollar at a fixed rate of USD 1 = JOD 0.709.
5. British Pound (GBP)
The oldest currency still in use, the British pound sterling, is also the strongest currency in Europe and one of the most valuable globally, with Britain being the world’s sixth-largest economy.
The GBP entered circulation in the 15th century and consisted of 20 shillings or 240 pence. It was decimalised in 1971 to relate all units by powers of 10 (which is very convenient when you send money from the UK to 60+ destinations worldwide with Profee).
6. Gibraltar Pound (GIP)
Gibraltar is located in the south of Spain but has the status of a British Overseas Territory (BOT). Since 1927, it has been issuing its own money, the Gibraltar pound, whose value is fixed at par with the British pound. As such, it shares with the latter the status of the strongest currency in Europe and is also among the strongest currencies in the world.
7. Cayman Islands Dollar (KYD)
Another BOT, this time in the Caribbean, the Cayman Islands is a large offshore financial centre and tourist destination.
The Cayman Islands dollar, considered today a strong currency in the world of finance, entered circulation in 1972, replacing the Jamaican dollar. Despite being a British territory, the currency is pegged to the U.S. dollar, which is also widely accepted for payment.
8. Swiss Franc (CHF)
Not only one of the strongest currencies in the world but also one of the safest, the Swiss franc has been in circulation since 1850.
Thanks to the Swiss government’s prudent policies and the country’s famous closed-door banking system, the franc has a reputation as one of the most stable and strongest currencies in the world in 2024. If you are an expat earning your income in one of the European currencies but preferring to keep your savings in the Swiss franc, you can take advantage of Profee’s favourable exchange rates for instant transfers to your Swiss franc account.
9. Euro (EUR)
Launched in 2002, the euro is the official currency of 20 EU countries, collectively known as the Eurozone, and is the third-largest economy globally. While not the strongest currency in Europe, the euro is the second most-used and one of the strongest currencies in the world. It is also the second-largest reserve currency and the second-most traded currency after the USD. Additionally, over 200 million people globally use currencies pegged to the euro.
10. U.S. dollar (USD)
The legal tender of the world’s largest economy, the U.S. dollar, was created in 1792 and is still circulating in dozens of countries and territories today.
The USD is the most dominating (even if not the strongest) currency globally. For example, the International Monetary Fund data show that about 60% of foreign reserves worldwide are held in the USD. Many commodities, including oil and gold, are priced in the USD. It is also part of the pairs traded the most, with other strongest currencies in the world, including USD/JPY, EUR/USD, and GBP/USD.
Now, knowing the strongest currencies in the world, you can manage your money smarter. And if your needs include transfers from EUR or GBP to currencies such as the Indian rupee, the Nigerian naira, the Brazilian real, or even the Kazakhstani tenge and the Ukrainian hryvnia, Profee will ensure you get the best deal on the market. Visit www.profee.com or get the Android/iOS app to enjoy all the benefits!
