Money is what makes the world go ’round. Every day, we give and receive money for goods and services, and that’s how it’s been like for millennia.
If you’re like most people, then you’ve been raised to believe that the US dollar is the most valuable currency in the world. But is that true? And if not, what is it then?
Read on to find out how to spot liquidity in forex.
The Most Valuable Currency
Let’s cut to the chase: what’s currently the most valuable currency?
Most (if not all) people would be surprised to learn that it’s the Kuwaiti dinar (KWD)! Today, 1 KWD is worth around $3.26 and is the most valuable government-backed currency as of 2020. Otherwise, if we’re talking about currencies that aren’t backed by governments, then you’d get some other currencies that are worth more, such as Bitcoin and gold.
Kuwait’s managed to have the most valuable foreign currency thanks to its prosperous oil production. It makes up 95% of the country’s exports and it produces around 3.15 million barrels per day!
Other Valuable Currencies
So after the KWD, the USD must be in second place, right? Well, here’s another surprise: the USD is #10 in the world, which means it’s sliding down in the ranks.
Here are the most valuable currencies:
- Kuwaiti Dinar (KWD)
- Bahraini Dinar (BHD)
- Omani Rial (MOR)
- Jordanian Dinar (JOD)
- Gibraltar Pound (GIP)
- British Pound (GBP)
- Cayman Island Dollar (KYD)
- Euro (EUR)
- Swiss Franc (CHF)
- United States Dollar (USD)
What the USD’s Ranking Means
While yes, the USD is at the bottom of the list, it’s not a huge cause for concern. After all, it’s the most traded currency in the world, so it’s not going to go away anytime soon. It’s the largest reserve currency, and experts are confident that it’ll never be replaced.
However, you should be aware that in 2021, the USD’s been decreasing in value. This has a few consequences, not all of which are bad.
For instance, the values of precious metals and foreign stocks increase as a result, which makes it a good time to sell if you have any. Read more about this from Monex Securities.
Otherwise, a weak dollar isn’t something to worry about much. On a broader scale, currencies don’t matter too much, except for when you’re traveling and need to exchange your USD for another currency. A weak dollar means you won’t get as much, so be aware of this if you’re going abroad.
Invest in World Currencies and More
If you’re able to, you should invest in world currencies, especially after learning that the Kuwaiti dinar is the most valuable currency! The truth is, the US dollar is on a downward trend, so it’s worth it to invest in not just other currencies, but also things like cryptocurrency, precious metals, and foreign stocks.
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