The most expensive currency in the world is the dinar in Kuwait. It was put into circulation in 1961 in place of the previously used Persian Gulf rupee. For a short time, when Iraq invaded Kuwait in 1990, it was in force with the Iraqi dinar. However, after the liberation, the Kuwaiti dinar was restored. The first series of new banknotes was printed in March 1991.
The Kuwaiti dinar is the currency with the highest value in the world – currently the exchange rate is about 14.50 PLN (the value of all currencies as of June 2022). One Kuwaiti dinar is divided into 1,000 fils. The following coins are in circulation: 5, 10, 20, 50, 100 fils and banknotes are in denominations: ¼, ½, 1, 5, 10 and 20 dinars. Other countries of the Arabian Peninsula are among the top countries with the most expensive currencies in the world. These are: Bahraini Dinar (11.88 PLN), Omani Rial (11.64 PLN) and Jordanian Dinar (6.32 PLN).
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The non-Arabic currency – the British pound sterling (PLN 5.48) – is only 5th in the world ranking. Next on the list is the Cayman Islands dollar (5.38 PLN), followed by the euro (4.69 PLN). Then the Swiss franc (4.64 PLN), and then the US dollar (4.48 PLN).
The most expensive does not mean the most important
With regard to Kuwait’s currency, the terms “the most expensive” and “the strongest” are often used interchangeably, but in fact it is not the value itself that proves the currency’s importance in the global economy. Although the Kuwaiti dinar is the most expensive currency in the world, it is only used in Kuwait and several other Arab countries. So in the context of the international economy, it plays a fairly important role in the Middle East, but certainly not the most important in the world.
The value of a currency reflects the strength and stability of a country’s legal tender. It depends on the value of GDP, the level of interest rates, the relationship between imports and exports of goods and services, and the economic and political situation of a particular country. The money of successful countries is strong and tends to increase in value. A high exchange rate also means that inflationary processes are well controlled. However, the importance of a currency is not apparent from its value, but above all from the popularity of its use in many countries of the world in all kinds of transactions.
The Major Currencies in the World
Regardless of the situation of the world economies, the major currencies still remain:
- they are,
- Swiss Franc.
The Australian dollar has also strengthened in recent years as a stable and relatively high-quality currency. Australia has a low government debt and a very high position in credit rankings (eg Moody’s and S&P). After all, the US dollar remains one of the most important and strongest currencies in the world. Important for the stability of the dollar is the fact that the American economy appears to be the largest in the world. You can also pay with it in many countries. The euro is also one of the most important currencies in the world. Despite the fact that the European currency’s performance has declined slightly recently, it is still considered stable and strong. The pound sterling remains the most expensive currency in Europe.
The cheapest currency in the world
In 2021, the cheapest currency in the world was the Venezuelan bolivar. It was caused by the astronomical inflation resulting from the deepening socio-economic crisis in this country. However, in October of the same year, there was a denomination and the government introduced a currency that was 6 zeros smaller. Currently, the Iranian rial has become the cheapest currency in the world. The current exchange rate against the Polish zloty is: PLN 1 = 9,414.43 IRR. Another very cheap currency is the Vietnamese Dong. The current exchange rate is: PLN 1 = 5,180.06 VND.
How many currencies are there in the world?
According to the United Nations (UN), 180 currencies issued by legally existing countries are recognized in the world. There are also currencies that are not officially certified by the United Nations, albeit with a value and used as a means of payment in a particular area. One such coin is the Karabakh drama officially issued by the Republic of Nagorno-Karabakh, which functions as an independent state but is not recognized by the international community. The Maltese Scudo is also such a currency. It is the currency of the Sovereign Order of Malta, but not of Malta. The Scudo is pegged to the euro with a parity of 1 Scudo = 0.24 euros.
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In addition to the above, there are also local currencies. These are money or vouchers issued by organizational units (eg a company or a city). The use of local currencies around the world has grown exponentially over the past twenty years and there are currently about 5,000 of them in use. The most well-known local currencies include:
- Eusko – one of the currencies in the Basque Country,
- Calgary Dollar – currency of Calgary in Canada,
- Pound Lewes – currency of Lewes in Great Britain,
- Fureai Kippu – currency for seniors in Japan.
In Poland, the project of the Polish local currency – Green – was created in 2015 and is still under development. The project is based on the assumption that a particular entrepreneur accepts the local currency and uses it in transactions with other entrepreneurs, without specifying the state currency, allowing additional benefits to be gained. Already 350 Polish entrepreneurs and more than 1,200 customers belong to the system. The value of the Green is always equal to one zloty.