One of our most popular blogs last year ranked 2019’s 10 strongest currencies out of the 180+ recognised by the United Nations. Our list of 2020’s strongest currencies hasn’t seen many major changes so far.
With the global outbreak of COVID-19, economies have taken big hits and stocks have plummeted. Many investors and buyers have become incredibly risk-averse, and they’re sitting tight. Some currency values have dipped – but it’s unsurprising to see the top 10 stay the same.
Here are the top 10 strongest currencies from the first quarter of 2020, valued against the world’s most traded currency, the US dollar.
*Exchange rates were sourced from Google Finance at the time of publication on April 8th, 2020.
#1 Kuwaiti Dinar [1 KWD = 3.21 USD]
Despite Kuwait’s small size, it exports a significant amount of oil into the global market. In fact, over 80% of this very wealthy country’s revenue comes from the oil industry.
#2 Bahraini Dinar [1 BHD = 2.65 USD]
Much like Kuwait, Bahrain is a small country in the Persian Gulf, and it’s largest source of income comes from the export of petroleum products.
#3 Omani Rial [1 OMR = 2.60 USD]
Oman is another big exporter of petroleum resources. Interestingly, the purchasing power of this currency is so high that the Omani government had to issue 1/4 and 1/2 Rial banknotes!
#4 Jordanian Dinar [1 JOD = 1.41 USD]
Unlike the 3 aforementioned countries, Jordan is not an exporter of oil or petroleum products. How is it in the top 5 then? There is one simple reason for the strength of the Jordanian dinar – it’s been pegged to the US dollar for the last 20 years, and that shows no sign of changing any time soon.
Check out: World’s Top 10 Most Traded Currencies 2020
#5 Pound Sterling [1 GBP = 1.24 USD]
The pound sterling is the official currency of the United Kingdom and many of its crown dependencies and overseas territories. Many of these territories (such as Guernsey and Gibraltar) issue their own versions of the currency, but are still valued 1:1 with the English currency.
#6 Cayman Islands Dollar [1 KYD = 1.20 USD]
The Cayman Islands has a strong currency, as it’s a tax haven and one of the five largest offshore financial centres in the world. This island nation provides offshore banking licences for hundreds of banks, hedge funds and insurance companies.
#7 Euro [1 EUR = 1.09 USD]
The euro is the official currency of the European Union, and the world’s second biggest reserve currency. Given the EU is home to some of the world’s most economically developed countries, it’s no surprise to learn that the Euro is so strong.
#8 Swiss Franc [1 CHF = 1.03 USD]
Switzerland is one of the world’s richest and most stable countries. Its sound monetary policies and low debt levels have made the Swiss Franc a ‘safe-haven’ currency.
#9 US Dollar
The US dollar is the world’s most traded currency, and it’s also the world’s primary reserve currency. It is consistently strong because it has so many buyers. USD is held by both central and commercial banks all around the world for the purpose of international transactions.
#10 Canadian Dollar [1 CAD = 0.72 USD]
Canada’s official currency is the sixth most traded globally. The country’s natural resources rank third in value worldwide, mainly due to Canada holding huge reserves of crude oil and the second largest uranium supply on the planet. The Canadian dollar’s value is quite sensitive to changes and fluctuations in the value of the US dollar, as most of Canada’s trade is with the neighbouring USA.
Only 3 of the above currencies have improved against the US dollar from our 2019 standings: #5 pound sterling, #6 Cayman Island dollar and #8 Swiss franc. The Euro (#7) and the Canadian dollar (#10) were the only two to lose value. The rest of the top 10 have all maintained their positions.
Some currencies that didn’t make this year’s top 10, but that aren’t far off, include the Libyan dinar, the Singapore dollar and the Australian dollar.
Which other currencies should you keep an eye on? Check out World’s Most Improved Currencies 2019.
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