Why is the Kuwaiti dinar more expensive than all? Let's explore the economy of currencies 💰

Currency rates are not just numbers. They reflect the economic power of countries and investors' trust in their financial systems.

Top Strongest Currencies in the World

Interestingly, the most expensive currency is not the euro or the pound, but the Kuwaiti dinar. Here’s why:

Among the leaders:

• Kuwaiti Dinar (KWD): 1 ≈ 3.26 USD — huge oil reserves, minimal inflation
• Bahraini Dinar (BHD): 1 ≈ 2.65 USD — diversified economy
• Omani Rial (OMR): 1 ≈ 2.60 USD — the hard peg to the dollar ensures stability

Familiar currencies:

• British Pound (GBP): 1 ≈ 1.27 USD
• Euro (EUR): 1 ≈ 1.10 USD
• Swiss franc (CHF): 1 ≈ 1.08 USD

Main Discovery

The high cost of currency ≠ purchasing power. In Kuwait, 1 dinar may be cheaper than 1 euro in the eurozone. The exchange rate reflects global demand, not the actual value of goods within the country.

Political stability, natural resource reserves, and currency reserves are the real factors that make a currency strong. That is why small Kuwait ranks first in the world ranking.