Currently the value of the United States Dollar or USD is on the way to strengthening, helped by the United States government’s measures to strengthen their economy.
The increase in interest rates introduced to control inflation and the instability that is currently affecting Europe following the incident in Ukraine, resulted in the United States economy feeling financial benefits.
Now the USD is seen as a safe deposit value against other major world currencies, helping its value to strengthen; compared to currencies such as EURO and YEN.
Do you know which currency has a stronger value than the USD? Here are 7 world currencies that have a higher value than the main currency of the United States.
1. Kuwaiti Dinar
If most of the West Asian countries on this list have a higher currency value compared to the USD due to the peg imposed, the story is different with the Kuwaiti Dinar.
Until now the Kuwaiti Dinar (KWD) remains the most valuable currency in the world when compared to any other currency.
Also includes the United States Dollar. At the time this article was written, the value of KWD1 is equivalent to USD3.24.
The high supply of petroleum oil helps the value of this currency to remain valuable, due to the Kuwaiti government’s standard transaction terms requiring all purchases to be made in KWD.
2. Bahraini Dinar
Like the Omani Riyal, Bahrain’s currency, the Bahraini Dinar, is also pegged to the USD value at a rate of BHD1 equivalent to USD2.65, slightly higher in value.
Introduced in 1965 to replace the Gulf Rupee currency used before that, the Bahraini government chose to peg the value of their Dinar with the agreement of the International Monetary Fund or IMF at the value of USD1 = BHD0.376.
Uniquely, in addition to the Bahraini Dinar, Bahraini citizens can also conduct transactions using the Saudi Arabian Riyal, usually calculated using the exchange rate of BHD1 equivalent to SAR10.
3. Omani Rial
What is the value of the Omani Rial compared to the USD?
At this point, the ratio is OMR1 equal to USD2.60 and that figure is also based on the pegged figure.
Pegging to the USD has been introduced by the Omani government since 1973 with several value changes being carried out.
Initially, this figure was set at OMR1 = USD2.895 but was amended to USD2.60 or the current value, in 1986.
The strength of the value of the Omani Riyal is said to stem from several factors, particularly Oman’s abundant oil resources, the country’s low total debt and Oman’s sound financial system, prompting many investors to attend.
4. Jordanian Dinar
Like the Cayman Island Dollar, the Jordanian Dinar (JOD) is also one of the currencies pegged to a specific value to the USD.
Currently, the value is USD1 equivalent to 0.709 JOD or JOD1 equivalent to USD1.41. There is a reason why the value of the JOD is pegged to the USD, introduced in 1995.
The political instability that plagued West Asian countries as well as Jordan’s own position sitting among turbulent countries such as Lebanon, Syria, Iraq and Palestine forced such action to be taken.
In addition to the country itself, the Jordanian currency is also one of the most used transaction methods by Palestinians living in the West Bank.
5. Great Britain Pound
In addition to the British currency, the Great Britain Pound (GBP) or its official name ‘ Sterling ‘ is another currency that is often compared when we talk about foreign currencies.
Currently hovering between GBP1 equals USD1.15, the Sterling is the 4th most used currency in the world as a medium of exchange.
Regulated by the Bank of England; in addition to countries in the United Kingdom, other countries such as Gibraltar, South Georgia, the Isle of Man and the entire Antarctic region under British control also use the Sterling currency.
6. Cayman Islands dollar
The Cayman Island Dollar or KYD is the currency used by the residents of the Cayman Islands, to replace the Jamaican Dollar they used to use.
Widely used in the three main islands there which are Grand Cayman, Little Cayman and Cayman Brac, the Cayman Islands are known throughout the world as a tax haven location due to the lack of corporate tax policies introduced there.
In 1974, the Cayman Island government introduced an act that pegged the value of KYD1 to USD1.20, to protect the value of their currency from fluctuations in value and currency speculation.
That value remains in use to this day.
7. EUROS
At the time this article was written, the EUR and USD were grappling with each other. Sometimes the value is 1:1, sometimes in favor of EUR, and sometimes in favor of USD starting July 2022.
The EUR has fallen sharply in value over the past few months, falling to the same level as the USD.
Uniquely, the same event has only happened once in 2002, during the initial introduction of the EUR currency.
The value of EUR1 before July of 2022 is around USD1.13-1.18, so this change is clearly beneficial to US citizens.
It is not known how long this situation will remain.