World powerful currency | Not dollar, it is the strongest currency in the world, know which are the top 5 Mudras
Dollar (photo istock)
- The United Nations has considered about 180 currencies as legal tender.
- Our rupee is compared with the dollar everyday.
- But the dollar is not the most powerful currency in the world.
Whenever it comes to the strongest currencies of the world, the dollar always comes to our mind because we hear and read every day how much our rupee has risen and fallen against the dollar. But the dollar is not the strongest currency. So let’s know which is the strongest currency? It may be noted that the United Nations has recognized about 180 currencies as legal tender. The value of currency fluctuates regularly around the world. Some mudras are considered more powerful than others. Let us know who is the top 5 strongest currency in the world.
World’s No. 1 Strongest Currency – Kuwaiti Dinar (KWD)
The Kuwaiti Dinar (KWD) is the official currency of the country. The name dinar comes from the Roman dinar. The Kuwaiti dinar is subdivided into 1000 fils, a coin used in several Arab countries. The Kuwaiti dinar is widely considered to be the most powerful currency in the world. Kuwaiti Dinar is also known as KWD for short. It is used extensively in oil related transactions in the Middle East. The Kuwaiti Dinar is the strongest circulating currency as of May 2021. In which 1 Kuwaiti Dinar is equal to 3.32 US Dollars. That is, one Kuwaiti dinar is equal to 246 rupees. The Kuwaiti Dinar (KWD) was introduced in 1961 in exchange for the Gulf Rupee. The Gulf rupee was the currency linked to the Indian rupee. The Gulf Rupee, issued by the Government of India in 1959, was primarily intended for use outside India in the Persian Gulf region. The Gulf Rupee, like the Indian Rupee, was pegged to the British Pound Sterling (GBP).
World’s No. 2 strongest currency – Bahraini Dinar
The Bahraini dinar is the world’s second most valuable circulating currency, with one Bahraini dinar being worth US$2.65, slightly behind the Kuwaiti dinar, which is worth US$3.32. Bahrain is an island country in the Persian Gulf with a population of just over one million. Its primary source of revenue, like that of Kuwait, is global gas and petroleum exports. Surprisingly, the Saudi Riyal along with the Bahraini Dinar is officially recognized as a legal currency in Bahrain. Their exchange rate is also fixed, with 1 dinar being equal to 10 rials.
World’s No. 3 Strongest Currency – Oman Rial
The Oman rial is the national currency of Oman, located on the Arabian Peninsula, and it currently ranks third among the world’s most valuable currency. Before 1940 the local currency of Oman was the Indian Rupee, which was quickly replaced by a more powerful currency. Oman’s economy is based mostly on its oil reserves, which lie on the southeast coast of the Arabian Peninsula. The Omani Rial is tied to the US Dollar.
The world’s number 4 strongest currency – Jordan dinar
The official currency of Jordan is the Jordanian Dinar (JOD). It is an Arabic country located on the Jordan River. The government of Jordan maintains stable exchange rates, which is one of the main reasons behind the currency’s high value. Jordan, unlike its neighbours, is not highly dependent on oil exports, the Jordanian dinar, which was introduced in 1949 to replace the Palestinian pound, has been tied to the US dollar for the past two decades.
World’s number 5 strongest currency – British pound
Sterling is the national currency of the United Kingdom. The British Pound Sterling ranks 5th among the most valuable currencies in the world. The pound sterling is often considered the strongest currency in the world. Still, it lags behind 4 Arabic currency in terms of strength. The decision of the United Kingdom to leave the European Union has had a negative impact on the value of the pound. Despite this, it is the world’s oldest currency in circulation and one of the most exchanged. Cable or GBP/USD is the third most traded currency pair in the FX market.
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