When you go on holiday, your usual check list would usually include passport, clothes, tickets… and one very important thing – the local currency of the country you are visiting. You must have come across the term “currency” several times but do you know what it actually means, how it is measured and which currencies are the strongest in the world?

In the world of finance, an exchange rate (also known as a foreign-exchange rate, forex rate) between two currencies is the rate at which one currency will be exchanged for another. For example, on this day, 1 British pound can be exchanged for 1.29 US Dollars. This exchange rate keeps changing regularly depending on a number of factors.

Exchange rates are determined by a number of factors like supply, demand, inflation and other economic and non-economic factors (natural disasters, terrorist attacks etc.)

Now, let’s go through the strongest currencies in the world as of June 2017. For illustration purposes, we will compare the value of each currency to 1 British Pound.

  1. Kuwaiti Dinar: 1 Dinar is worth £2.56
  2. Bahraini Dinar: 1 Dinar is worth to £2.05
  3. Omani Riyal: 1 Omani Riyal is worth £2.01
  4. Latvian Lat: 1 Latvian Lat is worth £1.25
  5. Jordanian Dinar: 1 Jordanian Dinar is worth £1.09
  6. Falkland Island Pounds: 1 Falkland Island Pound is worth £1.01
  7. Gibraltar Pounds: 1 Gibraltar Pound is worth £1.01
  8. St Helena Pound: 1 St Helena Pound is worth £1.01
  9. British Pound
  10. Cayman Islands Dollar: 1 Cayman Islands Dollar is worth £0.95

 

Aside from a few countries, the value of the British Pound is higher than most countries’ currencies.

Some of the weaker currencies include Iran, Guinea, Paraguay, Belarus, and Armenia. For instance, it takes 41,791 Iranian Rials to equal the value of 1 British Pound.

Look out for more interesting articles on Money and Finance from IN-SYNC Credit Services.

 

Bibliography:
http://life-in-saudiarabia.blogspot.co.uk/2015/02/top-10-strongest-currencies-in-world.html
http://www.profitconfidential.com/u-s-dollar/the-10-most-expensive-currency/
https://www.bookmyforex.com/blog/top-10-currencies-of-the-world/
https://en.wikipedia.org/wiki/Exchange_rate
Google currency converter