Who is related to the most expensive currency in the world in 2025

In a world with over 180 countries, each with its own currency to drive its economy. But have you ever wondered which currency is the strongest? It’s not about how much you deposit, but the actual exchange rate in the market—how much one unit of that currency can exchange for others. Today, let’s see which currencies hold the title of “King of Currencies” worldwide.

When Economic Power Becomes Currency Value

Kuwaiti Dinar - Leading since 1980

The Kuwaiti people have used the (KWD) dinar since 1980, replacing the former Gulf Rupee. Its standout feature is its linkage to a basket of currencies rather than a single one, resulting in high stability. Currently, 1 KWD = 3.26 USD.

What keeps Kuwait at the top is its reliance on oil—this country exports about 3 million barrels per day, ranking in the top 10 globally. The continuous and steady oil trade revenue has pushed GDP per capita over $20,000 annually, with a persistent current account surplus, leading to a strong currency.

Rial Oman - Another oil-rich shoe on the market

Oman uses the (OMR) rial, pegged to the dollar since 1980, at an exchange rate of 1 OMR = 2.60 USD.

Oman is another wealthy oil-producing country, producing about 1 million barrels daily, ranking 21st in the world. Its economy grows at 4.1% YoY, with low inflation and a persistent surplus in cash flow, making the Rial Oman stable and strong, ranking 3rd among the most expensive currencies.

Bahraini Dinar - Small island, big economy

Bahrain has used the (BHD) dinar since 1968, pegged to the US dollar at 1 BHD = 2.65 USD.

Despite being a small island, Bahrain is a financial hub and a major oil producer in the Persian Gulf. Its economy is diverse, including oil exploration, credit, and finance. GDP per capita exceeds $20,000, similar to Kuwait. Inflation is only 0.8%, making it very stable, ranking second.

( Pound Sterling - The old fortress of global finance

The UK has used the )GBP### pound since the Anglo-Saxon era. Historically, it was backed by gold (Gold Standard). Today, 1 GBP = 1.33 USD.

The UK has the 6th largest GDP in the world, (3% of global GDP). London is a global financial center, with the fintech sector valued at over (trillion), ranking third after the US and China. The strength of its economy supports the pound’s high value worldwide.

$1 Swiss Franc - The “Safe Haven” art

Switzerland has used the ###CHF( franc since the 18th century, backed by silver. Currently, 1 CHF = 1.21 USD.

The Swiss Franc is globally renowned as a “Safe Haven” )Safe Haven( because:

  • Laws require at least 40% gold reserves to support the currency
  • Switzerland remains neutral in both world wars and conflicts
  • Global assets flow into Switzerland during crises

Thus, during the Greek debt crisis and wars, the Swiss Franc became the safest currency, causing its value to rise, prompting central bank interventions.

) Euro - The European Union’s unified currency

The ###EUR( euro officially launched in 1999, used in 20 Eurozone countries. Currently, 1 EUR = 1.13 USD.

In the first three years, the euro traded below the dollar, but then appreciated to 1 EUR = 1.60 USD. In 2008, the euro was weighted in the dollar index basket and became an IMF SDR reserve asset )accounting for approximately 29.31% of reserves(. This makes it the second most used international reserve currency, at )19.58% of all international reserves(.

Local Currencies That Are Strong

) Jordanian Dinar - Pegged but not oil-dependent

Jordan uses the ###JOD( dinar, pegged to the dollar, at 1 JOD = 1.41 USD.

Jordan is not oil-rich like its neighbors; its GDP per capita is only $3,891 per year, with a growth rate of 2.7% YoY. Its current account is always in deficit, but the country maintains international reserves of $13.533 billion )by the end of 2023(. The JOD remains strong due to political stability and strategic importance.

) Gibraltar Pound - 1:1 with the British Pound

Gibraltar has used the ###GIP( since 1934, pegged 1:1 to GBP. Today, 1 GIP = 1.33 USD.

GIP is a local currency used in Gibraltar’s overseas territory, supported by tourism, financial services, online gaming, and low taxes. The strength of the British Pound supports GIP’s stability and appreciation.

) Cayman Islands Dollar - Offshore financial hub

The Cayman Islands use the ###KYD( dollar, pegged to the US dollar at 1 KYD = 1.20 USD.

The Cayman Islands in the Caribbean are a global offshore financial center. Its economy relies heavily on tourism, financial services, and transportation. Despite limited use of KYD, its stable financial laws and credibility keep its currency strong.

Comparison Table of the World’s Most Expensive Currencies

Currency Exchange Rate per USD 1 USD equals Pegged or Float Highlights
Kuwaiti Dinar )KWD( 3.26 0.31 No )Basket of currencies( Heavy oil exporter, highest value
Bahraini Dinar )BHD( 2.65 0.38 Yes )USD( Diverse economy, very stable
Rial Oman )OMR( 2.60 0.38 Yes )USD( Gas exporter, strong growth
Jordanian Dinar )JOD( 1.41 0.71 Yes )USD( Not oil-dependent, strategic position
Pound Sterling )GBP( 1.33 0.75 No )Floating( Oldest, global financial haven
Gibraltar Pound )GIP( 1.33 0.75 Yes )GBP 1:1( Local only, pegged to GBP
Swiss Franc )CHF( 1.21 0.83 No )Managed Float( Safe Haven, high gold reserves
Cayman Islands Dollar )KYD( 1.20 0.83 Yes )USD( Offshore financial center
Euro )EUR( 1.13 0.89 No )Floating( European power, reserve asset level 2

When a Currency Is Expensive but Not Necessarily Stable

Many might think that a high-value currency is the best or safest, but that’s a misconception. A high currency value stems from strong economic fundamentals, but safety and stability depend on multiple factors:

Factors to Consider When Choosing a Currency to Hold:

  • Credibility of the government and central bank issuing it
  • Political stability of the country
  • Inflation rate
  • Current account surplus or deficit
  • International reserves

Most high-value currencies come from oil-exporting countries )Kuwait, Bahrain, Oman( with steady cash flows from natural resources, or from major economies with strong financial sectors )UK, Switzerland, Europe(.

In 2025, if you plan to invest in a currency, don’t just look at the exchange rate figures. Study the economic fundamentals and geopolitical factors behind that currency as well.

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