The forex market is not only one of the biggest entities of its type anywhere in the world, but it’s also one of the fastest-growing.
This is borne out by the numbers, with an estimated $6.6 trillion traded every single day globally through the foreign exchange. Conversely, this number was as low as $5.1 trillion in 2016, highlighting sustained and consistent growth during the last five years or so.
But what are the strongest five currencies in the world, and why do they play such a significant role in contemporary forex trading?
#5. Pound Sterling (GBP)
Known as the GBP, the British pound is currently the fifth most valuable currency in the world, while it’s also renowned as the oldest currency still in widespread use.
It’s also the fourth most traded currency in the world, accounting for around 12.8% of daily trades on the foreign exchange.
On average, you’ll receive around £0.71 GBP when exchanging a single US dollar in the marketplace, although the GBP/USD pairing has traded in an increasingly narrow range since the 2016 Brexit vote.
#4. The Jordan Dinar (JOD)
The national currency of Jordan, the Jordanian dinar (JOD) is currently ranked as the fourth strongest currency in the world, and one that has been the country’s official fiat asset since it replaced the Palestinian pound in 1950.
A key indicator of economic performance in the Middle East, the JOD is also pegged to the USD at a rate of 0.7090 per single dollar.
This peg helps to stabilise the JOD in a volatile marketplace, making it a popular asset for investors during times of economic tumult.
#3. The Omani Rial (OMR)
Next up is the national currency of Oman, which is unlike the majority of other global currencies as it’s split in 1000 smaller divisions known as ‘baisa’.
Once again, the growing stability and appeal of the Omani Rial has been underpinned by its peg to the USD, with a single dollar note exchangeable for approximately 0.38 OMR.
In recent times, the OMR has seen a pronounced increase in value and trading volume since being pegged to the greenback, while its rise has also been driven by the success and growth of the country’s oil exports.
#2. The Bahrain Dinar (BHD)
The Bahrain dinar (BHD) is currently considered to be the second most robust currency in the world, while this also follows the example of the OMR by being divisible into 1000 smaller currency units.
Once again, the BHD is pegged to the USD, boasting a similar exchange rate to the OMR. More specifically, a single US dollar will buy you 0.38 BHD, while the Bahrain dollar has seen the most pronounced growth of any international currency of late.
Oil is also the main and most lucrative export of Bahrain, and in this respect, the recent boom in global oil prices has helped to strengthen the performance of the BHD.
#1. The Kuwait Dinar (KWD)
Widely renowned as the strongest and best performing currency in the world, the Kuwait dinar (KWD) was introduced in 1960 and was initially equivalent to a single pound sterling.
Kuwait, which is sandwiched neatly between Iraq and Saudi Arabia, is another Middle Eastern nation that remains largely reliant on global oil exports, with the KWD’s robots status further strengthened by the recent growth of oil prices.
You will currently receive just 0.30 KWD when exchanging a single US dollar, making the former the world’s highest value currency unit per face value.
