2024-07-15 13:49:59
New Delhi: Whenever it comes to foreign currency, the first thing that comes to mind is the dollar, pound and euro. Even though the dollar, pound and euro are popular currencies, none of them are the most valuable currencies in the world. The truth is that the Kuwaiti Dinar (KWD) is the most valuable currency in the world. The value of 1 Kuwaiti Dinar is equal to about 271 Indian rupees. There are many reasons why the Kuwaiti Dinar is so valuable. One of the main reasons is that it is an oil exporter. Kuwait is one of the largest oil exporters in the world. Since oil is a global commodity and its demand is often high. In such a situation, the demand for Kuwaiti Dinar also increases. Due to this, the value of Dinar increases.
Interestingly, the dollar, which is considered dominant all over the world, is not even included in the top 5 most valuable currencies. After Kuwaiti Dinar comes Bahrain Dinar (BHD). The value of one Bahrain Dinar is approximately equal to 221 Indian Rupees. After Bahrain, Omani Rial (OMR) is at the third place in the world’s most valuable currency. Jordanian Dinar (JOD) is at the fourth place and Gibraltar Pound (GIP) is at the fifth place. That means the dollar is not even in the top 5.
Why is the dinar so valuable?
There are many reasons behind the Kuwaiti Dinar being so valuable. These include oil exports, political stability and Kuwait being a small economy. In fact, Kuwait is one of the largest oil exporters in the world. Oil is a global commodity. Its demand remains in the international market. In this way, the demand for Kuwaiti Dinar also increases. This is the reason why its value increases. Apart from this, Kuwait has been a relatively politically stable country. This attracts investors and strengthens the currency. The third reason is that Kuwait is a relatively small economy. This means that the supply of currency is limited. Limited supply coupled with high demand increases the value of the currency.
Which factors affect the value of currency?
economic condition: A currency with a stronger economy is usually worth more.
Interest Rates: Higher interest rates attract foreign investment, which increases demand for the currency and raises its value.
Inflation Rate: A currency with high inflation loses its value over time.
political stability: The currencies of politically stable countries are usually more valuable.
Trading of Commodities: Countries that export valuable goods to foreign markets usually have strong currencies.