We all know about dollars, euros, and pounds, but what is the most expensive currency in the world? Is it one of the above or some other currency that we rarely hear about? This article has the answer, along with additional info on the other powerful currencies worldwide.
What Is the Most Valuable Currency on the Planet?
The Kuwaiti dinar is the world’s most expensive currency. At the current exchange rate, 1.00 KWD is traded for 3.27 USD, even though the US Dollar is one of the top ten most valuable currencies in the world.
(X-Rate)
Stats and Facts on the Top World Currencies
There are 180 different currencies in the world, but only a handful of them have global recognition and are used internationally. In fact, claims in US dollars account for close to 60% of the global foreign exchange reserves. Read on to find out why the most expensive currency is not the same thing as the strongest currency.
Currently, only six currencies in the world are more expensive than the USD.
In addition to the Kuwaiti dinar (the world's most valuable currency), the Bahraini dinar ($2.65), the Omani rial ($2.59), the British pound sterling ($1.21), the euro ($1.08), and the Swiss franc are all currencies with a higher value than the US Dollar.
(X-Rate)
As of December 2021, there are $2.187 trillion in circulation.
The US dollar is the most traded and strongest currency in the world, albeit it is not the most expensive. The total volume of US dollar notes in circulation is 53.2 billion. According to the latest estimations, half of the value of USD is circulating outside of the USA.
(US Currency)
The USD is involved in 71.5% of daily trades on the Forex market.
While it may not be the most valuable currency in the world, the US dollar is undoubtedly the most popular one. According to forex trading statistics, it’s involved in nine out of the top ten currency pairs on the Forex market, with the USD/EUR pair accounting for 22.7% of the daily transactions turnover.
(Statista)
More than 66 countries have their currencies pegged to the USD.
A lot of countries like to peg their currencies to the top currencies of the world to gain economic stability, and the USD seems to be the most popular choice. Additionally, 25 countries have their currencies pegged to the EUR, and at least eight are pegged to the GBP.
(The Balance)
77.16% of the global SWIFT transactions in December 2021 were done in either USD or EUR.
Many people consider the US dollar and the Euro the best currencies in the world, and the above fact proves that it is hard to argue against them. More precisely, 40.51% of the SWIFT wire transfers in that period were made in USD and 36.65% in EUR. The GBP was the third most used currency accounting for 5.89% of the total value of the transactions.
(Statista)
The EUR is the official currency of 20 countries in Europe.
What makes the euro one of the top currencies in the world is its huge prevalence. In addition to being an official currency for the 20 EU members that comprise the Eurozone, it is also used all across Europe in countries that are not a part of the union.
(European-Union)
The GBP is the world’s oldest currency, dating back to the 800s.
Besides being one of the five most expensive currencies in the world, the British pound sterling is also the oldest currency that’s still in use. The Russian ruble, created in the 13th century, is the second-oldest, followed by the US dollar and the Japanese yen.
(Forex)
The least valuable currency in the world is the Venezuelan bolivar (1,923,539 VEF = 1 USD).
Considering the recent state of affairs, it is almost impossible to believe that the Venezuelan bolivar was once considered a top world currency. Before the country’s struggles with hyperinflation started in the 80s, the bolivar (then VEB) was one of the stablest currencies in the world. In 2021, Venezuela has released a new bolivar (VES) which has a decent value (1 USD = 19.42 VES), but the old, outrageously low-value bolivar (VEF) is still in use.
(X-Rate, World Atlas)
The Bottom Line
As the stats above indicate, the best world currency is not necessarily the one with the highest value on the foreign exchange, and there are many other economic and political factors to be considered. The US dollar is still the most used, traded, and held by banks globally, even though there are other currencies that are more expensive than it.
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