Asia is the largest continent in the world and consists of many countries. The oil rich countries of the Gulf, the strong economies of China and Japan and the fastest growing economy of India all contribute to a major part of the world economy. The value of a currency is determined by its purchasing power. The US Dollar is the standard currency against which all the currencies in the world are valued. The US Dollars is the common currency for foreign exchange but in terms of purchasing power, many currencies score more than it.
This is the list of the top ten Asia’s most expensive currencies today.
10. Saudi Riyal
Saudi Riyal is the currency of the Kingdom of Saudi Arabia. This is an oil rich country and one of the major exporters of oil in the world. The name of the currency has been derived from the Spanish word for “real”. This has been the currency of the kingdom since its inception. Saudi Arabia is a center of Islamic activities which has contributed to the currency’s dominant position. One Saudi Riyal is equivalent to $0.26.
This is the currency of the United Arab Emirates. Dirham was introduced in May 1973 which replaced the Qatari and Dubai Riyal. Dubai, Sharjah and Abu Dhabi are parts of the UAE which have emerged as one of the major centers of economic activity in the world. The economy of UAE is mainly dependent on oil which contributes to a major portion of its foreign exchanges. Tourism has also now emerged as a major industry in UAE. These factors have strengthened its currency. One Dirham currently equals $0.27.
8. Qatari Riyal
Qatari Riyal was introduced in the year 1966 to replace the Indian rupees. Qatar and some other countries in the neighbourhood used the Indian rupees until 1966 when India devalued its currency. Qatari Riyal has emerged as one of the strongest currencies in the continent because it has been stable and devoid of inflation for many years. The exchange rate of the Qatari Riyal is $0.274.
7. Singapore Dollar
Singapore has emerged as one of the important trading centers of the world. Many mammoth multinational companies have their headquarters in Singapore. The economy of Singapore witnessed a stellar growth during the Prime Ministership of Lee Kuan Yew who governed the nation for three decades. The Singapore Dollar has benefited immensely from the country’s strong economy although its value has recently diminished by about 10% against US Dollars. The current exchange rate for Singapore Dollar is about $0.73.
6. Brunei Dollar
Brunei Dollar has the same value as the Singapore Dollar. Singapore and Brunei are major trading partners which is the main reason for their currencies having the same value. The Brunei Dollar is managed together with the Singapore Dollar at a ratio of 1:1 by the Monetary Authority of Singapore. Brunei Dollar was introduced in the year 1967. Brunei Dollar is placed at a higher position because of the country’s oil exports. The exchange rate of Brunei Dollar is same at $0.73.
5. Azerbaijani Manat
Azerbaijani Manat is at the fifth position in the continent. The currency of Azerbaijan is 25% more valuable than the US Dollars. This is because the country has a very low unemployment rate by the virtue of its stable and strong economy. The word “Manat” has been derived from the Russian word “moneta” which means coin. The exchange rate for the Azerbaijani Manat is $1.25.
4. Jordanian Dinar
Jordanian Dinar occupies the fourth position among the strong currencies of Asia. The currency of the country has been consistenly ranked high since the last ten years due to the stability in the country. The economy of the country is not strong and there are also no natural resources for it to exploit. Despite the above mentioned weaknesses, Jordanian Dinar is strong with an exchange rate of $1.41.
3. Omani Riyal
Omani Riyal came into existence in the year 1973 in place of the previously used Saudi Riyal. Omani Riyal is one of the strongest and the most respected currencies in the world apart from Asia. Oman’s economy has prospered in the recent years with a very high human development index. This is the reason for its currencies strong position in Asia and the world. Another reason that is stated by experts for the high value of its currency is the strategically favourable geopolitical position of Oman. The exchange rate for the Omani Riyal is $2.60.
2. Bahraini Dinar
Bahraini Dinar is the second most valuable currency in the world and Asia. The Bahraini Dinar is counted among the most highly valued currencies in the world. This currency was introduced in the year 1965. The name dinar is derived from the Roman word denarius. Bahrain’s economy is good by virtue of its strong manufacturing sector. One Bahraini Dinar is equivalent to about $2.65.
1. Kuwaiti Dinar
Kuwait is a very small country but its currency, the Kuwaiti Dinar, has become the most expensive currency in both Asia and the world. The country is extremely wealthy by virtue of its oil exports. The wealth generated by oil exports and the fixed exchange rate system have contributed in making the Kuwaiti Dinar the topmost currency in the continent and the world. One Kuwaiti Dinar is worth $3.46.
This was the list of the currencies that command much influence in Asia and the world and have become the engines of economic growth of the continent.