What is the world's largest currency and how to profit from currency investments in 2025

Many Brazilian investors believe that the dollar, euro, and pound are automatically the most valued currencies globally. The reality is quite different. When analyzing exchange rates against other currencies, we discover that the world’s largest currency is not necessarily the most well-known. The Kuwaiti Dinar leads the international valuation ranking, followed by other currencies that many are unaware of.

Why diversifying into foreign currencies is strategic for 2025

Persistent inflation in Brazil and the ongoing devaluation of the real justify the search for currency assets. Investing in foreign currencies acts as a protection of wealth against fluctuations in the local economy.

The main benefits include:

• Protection against volatility of the Brazilian real
• Access to developed economies and expanding markets
• High liquidity in international transactions
• Genuine diversification of the portfolio

Recent data from the currency market indicate significant movements: EUR/USD oscillating at 1.16891 (-0.27%), GBP/USD at 1.34979 (-0.31%), and USD/JPY at 156.608 (0.19%).

The ranking of the 20 most valued currencies in 2025

The top ten places demonstrate the strength of Middle Eastern oil economies and established financial structures:

Kuwaiti Dinar (KWD) - Currently the world’s largest currency with an exchange rate of 1 KWD = 3.30 USD. Its strength derives from enormous oil reserves and strictly conservative fiscal policies that ensure extreme stability.

Bahraini Dinar (BHD) - Quoted at 1 BHD = 2.72 USD, benefiting from a robust and diversified financial sector in the Persian Gulf region.

Omani Rial (OMR) - Maintains a rate of 1 OMR = 2.65 USD, supported by political stability and increasing investments in renewable energy sources.

Jordanian Dinar (JOD) - Quoted at 1 JOD = 1.52 USD, strengthened by strategic geopolitical alliances in the Middle East.

British Pound (GBP) - With an exchange rate of 1 GBP = 1.35 USD, gradually recovering from Brexit with expansion in the UK’s technology sector.

Gibraltar Pound (GIP) - Quoted at 1 GIP = 1.34 USD, pegged to the British pound and driven by tourism and specialized financial services.

Cayman Islands Dollar (KYD) - Valued at 1 KYD = 1.25 USD, functioning as a tax haven with attractive regulations for international capital.

Swiss Franc (CHF) - Quoted at 1 CHF = 1.12 USD, consolidating its reputation as a safe-haven asset during periods of global geopolitical instability.

Euro (EUR) - Priced at 1 EUR = 1.10 USD, supported by European Union investments in digital transformation and sustainability goals.

US Dollar (USD) - Although not technically the largest currency by unit value, it remains the most traded internationally. Its historical strength has been reduced by market crises and recent inflation, but it continues to be the preferred choice for cautious investors.

Emerging and secondary market currencies:

UAE Dirham (AED) at 0.30 USD, driven by Dubai’s consolidation as a cryptocurrency and fintech hub. Singapore Dollar (SGD) at 0.75 USD, benefiting from technological innovation and regional maritime trade. Norwegian Krone (NOK) quoted at 0.11 USD, attracting ESG investments through clean energy exports.

Australian Dollar (AUD) at 0.70 USD, supported by abundant natural resources and Asian trade partnerships. Mexican Peso (MXN) at 0.06 USD, strengthened by economic reforms and nearshoring processes. Maldivian Rufiyaa (MVR) at 0.065 USD, dependent on luxury tourism and infrastructural modernization.

Turkish Lira (TRY) quoted at 0.04 USD, showing volatility but offering opportunities in commodity markets. Canadian Dollar (CAD) at 0.78 USD, ensuring stability through oil and mineral exports. Israeli New Shekel (ILS) at 0.28 USD, driven by a startup ecosystem and technological innovation.

Saudi Riyal (SAR) at 0.27 USD, transformed by the Vision 2030 project that diversifies revenues beyond the oil sector.

Factors that determine if a currency is truly the largest in the world

The largest currency in the world in terms of valuation is not determined solely by its nominal value against the dollar. Multiple factors influence this position:

Economic stability - Countries with solid institutions and consistent macroeconomic policies maintain strong currencies. Controlled inflation - Stable price structures ensure preserved purchasing power. Currency market liquidity - Transaction volumes determine availability and trading spreads. Dynamic exchange rates - Daily fluctuations reflect market sentiment and global events. Trade balance - Trade surpluses increase demand for the local currency. Geopolitical factors - Wars, natural disasters, and trade disputes constantly redefine currency hierarchies.

In Latin America, the Peruvian Nuevo Sol often surpasses the Brazilian Real in conversion power to the dollar or euro.

Practical strategy: which currencies to choose for 2025

Defensive currencies (refuge): Swiss Franc (AUD/CHF), Japanese Yen (AUD/JPY), offer stability in turbulent scenarios.

Growth currencies: US Dollar (AUD/USD), Canadian Dollar (AUD/CAD), Euro (EUR/USD) combine liquidity with appreciation opportunities.

Recommended approach: Combine established strong currencies like the Swiss Franc and KWD with emerging currencies such as Peso Mexicano and Turkish Lira, creating a balanced exposure between safety and potential returns.

How to start investing in foreign currencies today

Brazilian investors access foreign currencies through specialized brokerage platforms. The process follows simple steps:

1. Open an account with a regulated international broker
2. Analyze reports from the IMF and central banks to identify valuation trends
3. Define allocation: combine the world’s largest currency (KWD) with higher liquidity alternatives
4. Constantly monitor events such as monetary policy decisions, elections, and geopolitical tensions that impact exchange rates

Important reminder: This content is for informational purposes only. It does not constitute investment advice. Consult experts before allocating capital to currency assets.