These Are the 5 Strongest Currencies Worldwide in January 2025 | Global News Avenue

While the U.S. dollar (USD) dominates currency markets—it has long been the most popular currency among foreign governments—it is not the most valuable. That honor goes to the Kuwaiti dinar, worth $3.24, ahead of the U.S. dollar, euro, Japanese yen (JPY) and all the other currencies that regularly feature in financial news headlines.

Below, we’ll take you through the five most valuable currencies, and why natural resource wealth and other economic reasons put them at the top.

The world’s most valuable currency

1. Kuwaiti Dinar (KWD): USD 3.24

this Kuwaiti dinar is the most valuable in the world at approximately $3.24 (all data as of January 10, 2025), with prices ranging from $3.12 to $3.30 over the past year.

Kuwait has a strong economy and an unemployment rate of approximately 2%. Its main export is oil, which is the focus of much of its economic activity.

2. Bahraini Dinar (BGD): $2.65

this Bahraini dinar Valued at $2.65, it has traded between $2.54 and $2.65 in the last year. The reason why BGD’s value is so stable is that its official exchange rate with the US dollar is 2.659 to 1.

Bahrain’s economy is more diversified than some of the other countries on this list, with active economic activity in areas such as banking, finance, tourism, and the oil industry.

3. Omani Rial (OMR): $2.59

Like Bahrain, Oman pegs its currency to the U.S. dollar. The official peg is 2.60 to 1, but the rial may trade slightly above or below that rate. Last year, it traded in the currency market in a range of $2.49 to $2.60.

Oman’s economy relies heavily on oil, but like its neighbors, it has been trying to diversify into new industries.

4. Jordanian Dinar (JOD): $1.41

Jordan is the outlier on this list. It is resource-poor and has faced major economic challenges in recent years, including an influx of Syrian refugees (who now make up 12% of the country’s population), climate change and regional chaos.

The country has pegged its currency to the U.S. dollar since the mid-1990s – with an official exchange rate of 1.41 to one. Jordan’s economy is built on tourism and a large number of direct foreign aidmore than one billion of which come from the U.S. each year

5. British Pound (GBP) = $1.23

British poundLondon’s value is built on centuries of economic influence and London’s status as a global financial centre. Despite facing challenges from Brexit Although the economy has faced significant headwinds in recent years, the pound has been supported by the UK’s diversified economy and strong financial services sector.

What makes money valuable?

Factors in a currency’s value include its supply, interest rates, and inflation– As each one becomes scarce, it becomes more valuable. It would also help if there was support from higher interest rates.

The biggest reason, however, lies in the broader economic picture: political stability attracts foreign investors, natural resource wealth drives international demand, and monetary policy can directly influence exchange rates when a country’s central bank intervenes directly in global foreign exchange markets.

bottom line

While the value of the Kuwaiti dinar is among the highest in the world, the real story is how these countries maintain the value of their currencies. While the aforementioned Middle Eastern countries have used their oil wealth and peg to the U.S. dollar to create extremely stable currencies, the pound has relied on its status as a financial powerhouse and its economic diversity.