Forbes List US Dollar Below These Global Currencies, Rupee Does Not Even Feature In Top 10
According to the Forbes report, the strength of the currency is determined by evaluating the number of goods and services which can be purchased with one unit of the national currency and foreign currency obtained in exchange. Does India feature in the first 10?
What is eating up the strength of the US dollar?
New Delhi: If you were looking for answers to what are the strongest currencies in the world, your wait is over. Forbes has released a list of 10 strongest currencies in the world (compared the Indian Rupee as well as USD), along with the factors that contribute to their prominence. However, you will be shocked to know that no, unlike what you most likely assumed — neither the hugely popular and widely used US dollar nor the emergent economic giant China’s Yen are the strongest currencies in the world.
The US dollar, though, despite being the most widely traded global currency, is tenth on the list. The Euro (the official currency of Eurozone which comprises 19 member states of the European Union) is the second-most traded currency and holds the ninth spot.
Guess which country’s currency tops the list? It’s the Kuwaiti Dinar, says the Forbes report. One Kuwaiti Dinar is equal to ₹ 270.23 and $3.25. Next comes The Bahraini Dinar, which is valued at ₹ 220.4 and $2.65, and is followed by Jordanian Dinar (₹117.10 and $1.141).
TOP 10 CURRENCIES OF THE WORLD
- Kuwaiti Dinar (₹ 270.23 and $3.25)
- Bahraini Dinar (₹ 220.4 and $2.65)
- Omani Rial (₹215.84 and $2.60)
- Jordanian Dinar (₹117.10 and $1.141)
- Gibraltar Pound (₹105.52 and $1.27)
- British Pound (₹105.54 and $1.27)
- Cayman Island Dollar (₹99.76 and $1.20)
- Swiss Franc (₹97.54 and $1.17)
- Euro (₹90.80 and $1.09)
- US Dollar (₹83.15)
How was this list decided?
As per the Forbes report, economic growth, political stability, global demand and natural resources are determining factors to measure the strength and value of a currency. The list is based on currency values till January 10, 2024, and has been released with a disclaimer that these values are subject to fluctuation. The United Nations officially recognises 180 currencies across the world as legal tender. Though certain currencies such as the US dollar, etc. are popular and used widely, but these factors do not necessarily determine their value or strength. Currency strength is a delicate dance of supply and demand, influenced by factors ranging from interest rates and inflation to geopolitical stability.
Here’s more about the star currency – the Kuwaiti Dinar:
The Kuwaiti Dinar was introduced in 1960 and has been consistently ranked as the world’s most valuable currency. As the national currency of a nation which is a fortunate to be a part of the Middle East country’s economic stability (thanks to its oil reserves and tax-free system) the Kuwaiti Dina’s exchange rate on Wednesday (17 January) stood at exchange rate, ₹270.10 to one Kuwaiti Dinar.
Why does the strength of a currency matter?
Currency is a reflection of the following factors:
- A country’s economic vitality and its value in the global trade dynamics
- Is a testament to a country’s stability and robust financial health
- A strong currency makes investors confident of its economy, attracts investments, and helps foster international partnerships
- Helps countries make long-term plans, take calculated risks, and weather economic storms
- Enhances a country’s purchasing power, underlines its credibility on the world stage
