The US dollar is considered one of the strongest, most expensive and best-known currencies in the world. However, it has serious competitors in terms of value. Many people know that the euro is more valuable than the dollar, but is it the only currency that costs more than the USD?
Actually, there are many more currencies in the world that are worth more than the US dollar, although they are less popular. In this FXOpen article, we will look at the dollar’s main competitors.
The United States Dollar: An Overview
The US dollar, or greenback, is considered expensive and strong compared to other currencies because of the economic stability and strength of the United States. The US has the world’s largest and most highly developed and diversified economy with a sound financial system and a stable political environment.
The strength and relative stability make the US dollar the currency of choice for investors and traders. Like any other asset, the greenback experiences fluctuations in value depending on global and local economic conditions, interest rates, and geopolitical events.
The USD is known as a reserve asset, which means that central banks of different countries hold large amounts of US dollars to support their currencies and facilitate international trade. To understand changes in its value, one can look at the dollar index (the USDX). It shows the value of the US legal tender to a basket of six other major currencies.
Because of the US economic dominance and the significant role of the nation in global trade and finance, the popularity of the USD doesn’t change much. The prices of many commodities, such as oil, are set in dollars, further strengthening its position as a major global legal tender.
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What Money Is Worth More Than a US Dollar?
Now that you know why the dollar is a powerful currency, let’s look at its main competitors. These include the Kuwaiti dinar, Bahraini dinar, Omani rial, Jordanian dinar, Cayman Islands dollar, British pound sterling, and euro. Here we’ll discuss what currencies are higher than the US dollar.
Exchange rates are presented as of May 8, 2023
Exchange rate: 1.10 USD
If one asks what is worth more, the euro or the dollar, the answer is the euro. But this is true for 2023. From January 2000 to November 2002, for example, the dollar was valued higher than the EUR, but the euro strengthened after that and was cheaper than 1 USD only in the second half of 2022. However, a weak currency is not a bad sign because it can help boost exports from the US. You can check who benefits from the weak greenback here.
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Cayman Islands Dollar
Exchange rate: 1.20 USD
The Cayman Islands dollar is the legal tender of the Cayman Islands, the British Overseas Territory in the West Indies, in the Caribbean Sea. The international abbreviation is KYD. This legal tender relies on a fixed exchange rate pegged to the US dollar, where 1 KYD equals 1.20 USD.
Exchange rate: 1.26 USD
Thanks to the UK’s position as one of the world’s major financial centres and one of the leaders in international trade, the British pound is strong. Politicians in the UK generally maintain the value of the pound above that of the greenback. Historically, the GBP was worth much more than the US dollar, but in the 20th century, its value dramatically declined. Before World War II, one pound was equal to 5 dollars or more. However, after that, the greenback started gaining strength and became a leader in international trade and a global store of value.
Exchange rate: 1.40 USD
Similarly to the KYD, the Jordanian dinar (JOD) is pegged to the US dollar at a higher value. The idea behind this was to influence the exchange rate and keep it as stable as possible, which should help attract US investment in Jordan.
Any country can peg its currency to the US dollar. Moreover, the value could be higher, lower, or equal to one USD. But, the peg must be maintained. Data for the last 20 years shows that Jordan has done this successfully, so 1 JOD = 1.40 USD.
Exchange rate: 2.60 USD
Oman has also pegged its legal tender to the US dollar at a fixed rate, so 1 OMR is 2.60 USD. The rial successfully maintains its value thanks to the country’s oil production, tight monetary policies, and financial restrictions on the money supply. The restrictions have helped keep inflation rates low for many years.
Exchange rate: 2.66 USD
The Bahraini dinar, or BHD for short, is pegged to the USD at a higher value. Since 2018, the Bahraini dinar’s exchange rate has remained at the same level, and 1 BHD = 2.66 USD. In hindsight, the average annual rate for the BHD has been close to the current rate since 2011. The dinar stays pegged, and inflation remains low.
Exchange rate: 3.26 USD
The Kuwaiti dinar or KWD is the world’s strongest national currency. It is not pegged and floats freely. Thanks to the country’s vast natural resources and significant oil production, the value of KWD is very high.
Is the euro stronger than the US dollar?
Yes, as of 2023, the euro is worth more than the greenback. However, the EUR is not the most valuable currency globally.
What currency is worth the most in US dollars?
The most valuable currency against the dollar is the Kuwaiti dinar. In 2023, its value is more than three times higher than that of the USD.
What are the top 20 currencies in the world?
The world’s strongest currencies include the Kuwaiti dinar, Bahraini dinar, Omani rial, Jordanian dinar, and others. If you want to learn more about the top 20, check out our article about the most powerful currencies in the world.
What is the most stable currency?
The safest and most stable currency among the free-floating ones is the Swiss franc. And if we talk about the currencies that rely on a peg, a stable performance is shown by the Bahraini dinar, Jordanian dinar, and Omani rial.
Is the dollar stronger than the euro today?
The exchange rate constantly changes due to geopolitical processes, macroeconomic factors, and the stability of the US and EU economies. You can check the actual EUR/USD rate here. *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
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