Why does kuwait have the strongest currency

In actual sense, there are some Arab currencies that perform better than the USD in terms of value or exchange rate. In one of our previous posts, we shared with you top 40 most valuable currencies in the World against the Nigeria Naira, good enough, some of them are also doing far better when paired with the American dollar.

The strength of a currency is determined by the rate of international market demand. The Kuwait Dinar is in high demand because of its wealth of oil. Since oil is in such high demand, many countries need the Dinar to purchase oil which drives up the exchange rate. KWD is divided into 1, fils — a coin that is used in many Arab countries.

The Kuwaiti dinar is the strongest circulating currency as of May , with one Kuwaiti dinar equaling 3. Kuwait has no taxes and it has a relatively low unemployment rate. The Kuwaiti Dinar was introduced in as a replacement for the Gulf rupee. The Gulf rupee was a currency tied to the Indian rupee. The Gulf rupee, issued by the Indian government in , was intended for use outside India, primarily in the Arab Gulf region. Bahrain is an island nation in the Arabian Gulf with a population of slightly over one million.

Surprisingly, the Saudi Riyal, along with the Bahraini Dinar, is officially recognised as legal money in Bahrain. Their exchange rate is also set with 1 Bahraini Dinar equaling 10 Saudi Riyals.

The Omani rial is tied to the US dollar. It is an Arabic country on the Jordan River. Another strong from the Middles East that came into circulation in the year , the Omani Rial is the third-highest in the world. Fun fact: Oman used to have INR as its local before , later replaced with a stronger currency.

The Jordanian Dinar came into circulation in , Jordanian Dinar has been ranked as the fourth-highest in the world, although Jordan is not much economically developed and also lacks essential resources, like oil. GBP is the currency of Great Britain. It may not be termed as the highest currency in the world but is the oldest currencies that still exist. It is also the official currency of Ireland and is the fourth most-traded currency in the foreign exchange market.

A lot of people might not be aware but the Cayman Island Dollar KYD is one of the strongest Caribbean currency and also one of the newest currencies in the world which is in circulation from After a lot of preparations, euro was first launched on 1 January but only as an invisible currency just for accounting purposes.

The Euro is the official currency of the Eurozone, which consists of 19 of 28 member states of the European Union. Switzerland is not only one of the richest countries in the world but its currency CHF is the only currency in the world that is unaffected by inflation. Being high in demand when it comes to currency conversion, US Dollar falls away back in the list of highest currency values in the world.

US Dollar is the most traded currency in the world, its value may have depreciated but the strength is still intact. The Canadian dollar is also the fifth largest world currency. US dollar might not be one of the highest valued currencies, but it is undoubtedly the strongest currency in the world.

The Kuwaiti dinar is the national currency of the State of Kuwait. For those who are curious, the earliest roots of the Kuwaiti dinar can be traced to the Roman denarius. In short, the Romans started using silver coins because of their trade with the Greek cities that could be found on the Italian peninsula. However, the important part is that the denarius became very influential because the Roman Empire was very powerful and very prestigious.

As such, the influence of the denarius can still be seen in a wide range of contexts in the present day, which speaks volumes about its extent. As such, this means that when Islam rose out of the Arabian peninsula, the Islamic caliphates were influenced to a considerable extent by the Romans. For proof, look no further than the fact that the fifth Caliph of the Umayyad dynasty issued a coin called the gold dinar, which is of course named for the Roman denarius as well. As such, when Kuwait gained independence from the United Kingdom in the s, the Kuwaiti Currency Board created a new national currency called the Kuwaiti dinar to replace the Gulf rupee that had been used in the region prior to that point in time.

Something that in turn, provided the Kuwaiti dinar with a clear path to its current status. Regardless, there are a lot of people out there who will be curious about why the Kuwaiti dinar has such a high value.