Each Country has its own currency and that is the currency in which they prefer to trade however there are some currencies which are accepted by almost any country. One such currency is US Dollar. The currency has wide acceptability and it is easy to exchange US Dollar as compared to any other currency.
The currency rates fluctuate with every passing second and there are many factors which impact the exchange rate of the currency.
Some of the factors determining the Exchange Rate are
- Inflation Rate is one such factor which leads to the change in currency rate. The lower inflation rate is always better for the currency as it would appreciate the currency with respect to other currencies.
- A nation’s balance of payment also impacts the exchange rate and a deficit is always bad for the country. Spending higher than the revenue would create a deficit and this would negatively impact the currency rate of the country.
- The risk-free interest rate in the country would also impact the exchange value of the currency. If the country has higher interest rate then the demand would increase and this would, in turn, appreciate the exchange rate as well.
- Another factor is the political stability and the government debt. These two factors determine the risk profile of the country and give an idea about the changes of the country defaulting a loan payment. The higher risk would certainly impact the fluctuation. In addition to this, the higher political stability would also attract foreign investment which means an appraisal of the exchange rate.
- Another important factor which impacts the exchange rate is the terms of trade with the other countries. In addition to this, there are other factors like recession and speculations which also impacts the currencies exchange rate in external matters.
This was all about the factors determining the exchange rate but do you know which the most expensive currencies in the world are? Well, if you think it was GBP or Euro then you are probably wrong and you must go through this article to check out the top 10 most expensive currencies in the world. We have also given the exchange rate at the time of compiling this article and this will allow you to compare the currencies easily.
So, here is the list.
10. US Dollar
US Dollar surely doesn’t need any introduction as this is the most popular currency in the world. The currency had been around since 1792 and it is the most traded currency in the world. The inflation rate in respect to USD revolves around 2.04%. You may be surprised to know that INR was once pegged at par with USD but it was later devalued.
1 USD to INR – 64.90
9. Swiss Franc
Next on our list is Swiss Franc and the currency is represented by the code CHD. The currency is used in Switzerland and Liechtenstein and the inflation rate for the currency revolves around 0.8%. In addition to this, the currency is regulated by Swiss National bank.
1 Swiss Franc to INR – 69.28
1 Swiss Franc to USD – 1.07
Euro is not just the currency of one country but it is the official currency of the countries that are a part of European Union. Euro is also the second most traded currency in the world. Euro is monitored by European Central Bank and until now the United Kingdom and Denmark were the only counties in EU who didn’t use Euro.
1 Euro to INR – 80.70
1 Euro to USD – 1.24
7. Caymanian Dollar
On number 7, we have Caymanian Dollar and this is the official currency of Cayman Islands. The code used to represent this currency is KYD. The country has a negative inflation rate and it is estimated to be -0.1%. In addition to this, the currency had been in use since 1972 and prior to this, Cayman Islands used Jamaican Dollars as their official currency.
1 Caymanian Dollar to INR – 79.15
1 Caymanian Dollar to USD – 1.25
6. Gibraltar Pound
Next on our list is GIP which is the official currency of Gibraltar. The currency is pegged at par with GBP and as per the statistics; the inflation of the country is 0%. The currency is officially in use since 1927 and until then, the country used GBP as the official currency
1 Gibraltar Pound to INR – 90.08
1 Gibraltar Pound to USD – 1.38
5. Great Britain Pound
Great Britain Pound is also known as Pound Sterling and the currency is the official currency of United Kingdom, Guernsey, Jersey, South Georgia, Isle of Man and South Sandwich Island. The exchange rate fell by as much as 15 to 20% after the UK’s decision to exit European Union.
1 Great Britain Pound to INR – 90.08
1 Great Britain Pound to USD – 1.39
4. Jordanian Dinar
Jordanian Dinar is next on our list and the currency is represented by the code JOD. The country has an inflation rate of 1.7% which is one of the lowest inflation rates. Jordanian Dinar came into existence in 1950 and since then it had been the official currency of Jordan.
1 Jordanian Dinar to INR- 91.47
1 Jordanian Dinar to USD – 1.41
3. Omani Rial
On number 3, we have Omani Rial and this is the currency of Oman. The currency is represented by the code OMR and 1 OMR is divided into 1000 baisa. The country has an inflation rate of 4.1% which is certainly helping the country in maintaining high currency rate. You may be surprised to learn that until 1940, Oman used Indian Rupee as a local currency.
1 Omani Rial to INR – 168.55
1 Omani Rial to USD – 2.60
2. Bahraini Dinar
Next on our list is Bahraini Dinar which is basically the currency of Bahrain. The currency is also divided in 1000 fils and the currency code for Bahraini Dinar is BHD. In addition to this, the country has an inflation rate of 7% which had been quite stable for quite some time.
1 Bahraini Dinar to INR – 172.14
1 Bahraini Dinar to USD -2.65
1. Kuwaiti Dinar
The most expensive currency in the world is Kuwaiti Dinar and it is the currency of Kuwait. You may be surprised to learn that the currency is divided into 1000 fils and there are coins available in small denominations like 5 fils, 10 fils, 20 fils, 50 fils and 100 fils. One of the reasons for the currency being this strong is the oil wells in Kuwait.
1 Kuwaiti Dinar to INR – 216.32
1 Kuwaiti Dinar to USD – 3.33
It should be noted that the price mentioned in the article were taken on 7th March 2018 at 16:00 Hours approximately. The reason why we are making this note is that the price fluctuates with every passing second and the price may not be the same while you are going through the list of top 10 most expensive currencies in the world.