The top 15 Better Performing Currencies Against the US Dollar are covered in this article. Because currency valuation shapes foreign trade and investment flows, exchange rates and the global economy are closely related. Changes in exchange rates affect consumers’ purchasing power, firms’ profitability, and their capacity to compete.
The goal of managing exchange rates is to achieve economic stability and competitiveness through the intervention of governments and central banks. In order to successfully navigate the complexity of the global economy, one must comprehend the fluctuations of currency rates.
The International Monetary Fund (IMF) has updated its forecasts for the development of the world economy, indicating improvements in China and the US. Pierre-Olivier Gourinchas, the IMF’s top economist, says a “soft-landing” scenario is imminent based on a faster-than-expected lowering of inflation. The IMF has revised its October prediction to a 3.1% global growth rate for 2024, a modest rise. The following year’s growth is predicted to stay constant at 3.2%. Notwithstanding these constructive developments, Gourinchas cautions about persisting threats including geopolitical unrest and shipping interruptions, especially in the Red Sea.
Global trade was booming in 2021, with $24.23 trillion in exports and $21.93 trillion in imports, yielding a $2.30 trillion positive trade balance. Trade growth was 12.59%, the same as the global growth rate. With services accounting for $5.70 trillion in imports and $6.23 trillion in exports, the global GDP came to $96.88 trillion. For exports and imports, trade accounted for 28.88% and 27.94% of GDP, respectively.
The World Trade Organization reports that tighter monetary policy in major economies including the US and EU caused a slowdown in global output and trade in Q42022. Because of this, WTO experts have revised down their trade predictions for 2023 while holding onto hope for 2024. In 2024, the volume of global merchandise trade is expected to increase by 3.3%.
The banking industry plays a key role in how trade, currency exchange, and the global economy interact. Banks offer currency exchange, hedging solutions, and risk management services to help reduce risks and facilitate international trade.
Through their lending activities, they also have an impact on economic growth, which makes a strong and efficient banking industry essential to both trade facilitation and global economic stability. Therefore, let’s look at some of the major participants in this market, like JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), and Wells Fargo & Company (NYSE:WFC), before moving on to our list of the 15 Best Performing Currencies Against The US Dollar.
Top 15 Btter Performing Currencies Against the US Dollar
15. Bulgarian Lev
One USD is equivalent to 1.80 BGN.
In the European Union, the Bulgarian lev (BGN) continues to be a reliable currency. Since its adoption in 1881, the lev has been a symbol of strength and stability for Bulgaria. According to the current exchange rate of 1 USD = 1.8 BGN, the lev’s value against the US dollar has been stable. Despite its unique combination of difficulties, Bulgaria’s economy has shown remarkably resilient in the face of uncertainty around the world.
The nation’s membership in the EU and advantageous geographic location offer a foundation for stability and economic prosperity. But Bulgaria, like many other countries, has recently faced economic difficulties. The COVID-19 epidemic presented substantial challenges, impacting multiple industries, including the tourist and export sectors. Bulgaria is nevertheless dedicated to economic reforms and diversification plans in order to maintain resilience and guarantee sustained growth in the face of shifting global dynamics.
Top 25 Oil Exporting Countries in the World in 2024
14. New Zealand dollar
1.64 NZD for every USD
The New Zealand dollar (NZD) is one of the strongest currencies in the world, and it keeps getting stronger. Strong GDP growth, high interest rates, and political stability contribute to this rising trajectory.
Economic freedom has led New Zealand to rank third on The Heritage Foundation’s Index of Economic Freedom. This acknowledgement highlights New Zealand’s position as a global leader. New Zealand’s commitment to stability, economic expansion, and individual liberty affects the value of the dollar.
13. Australian dollar
1.53 AUD = 1 USD
The Australian dollar is ranked 13th on our ranking of the Best Performing Currencies Against the US Dollar. The Australian dollar (AUD) is the official currency of Australia and some Pacific Island states. While the Australian dollar isn’t the most valuable in the world, it’s notable for its value and stability. With 6.8% of daily transactions in the forex market, this currency is the fifth most traded. Diversification, stability, and high interest rates are among the factors that favor the Australian dollar.
12. Canadian dollar
1.36 CAD for every USD
As the national currency of Canada, the Canadian dollar (CAD) is highly valued globally, especially when it comes to foreign exchange reserves held by central banks. The CAD is a dependable option for international transactions because of Canada’s established political and legal stability, which is the reason for its popularity. Within the world of foreign currency trading, the Canadian dollar is in great demand; it makes up around 5% of all trades that occur on a daily basis in the worldwide foreign exchange market. Because of its reliability and liquidity, it is often used in currency markets.
Economic data point to a growing tendency in the Canadian manufacturing sector as of March 2024. From 48.3 in January to 49.7 in February, the S&P Global Canada Manufacturing Purchasing Managers’ Index showed a seasonally adjusted gain. This is the highest level it has been since April, suggesting that manufacturing activity may be improving. These data point to Canada’s industrial landscape’s durability and upward momentum, which may have wider ramifications for the nation’s overall economic performance.
11. Singapore Dollar
1.34 SGD for every USD
The official currency of Brunei is the Singapore dollar (SGD), which is also used in Singapore. The SGD is considered to be rather strong, given its current exchange rate of roughly 1.34 Singaporean dollars to one US dollar, which indicates its perceived strength in the global currency market. Although it is not the most traded currency, it is the thirteenth most traded on the foreign exchange market, making up approximately 1.8% of all daily forex transactions. This suggests that the Singapore dollar is involved in a significant amount of international commerce. Against the US dollar, the Singapore dollar is ranked eleventh on our list of best performing currencies.
10. Brunei dollar
1.34 BND for every USD
Tenth among the best-performing currencies against the US dollar is the Brunei dollar (BND). Since 1967, it has functioned as the Sultanate of Brunei’s official currency. Notably, both the Brunei dollar and the Singapore dollar are accepted as legal money in their respective nations and can be used interchangeably at face value.
Regarding economic progress, Brunei saw difficulties in 2023 as a result of its economy’s stagnation in the wake of the COVID-19 pandemic’s worldwide effects. The nation’s reliance on the extraction of hydrocarbons, especially crude oil, exacerbated its economic problems. During this time, the production of crude oil declined and the tourism industry experienced a slowdown, which further impeded economic progress. The combination of these elements highlights Brunei’s economy’s susceptibility to outside shocks and highlights the necessity of resilience and diversification plans in the face of prevailing global uncertainties.
9. Euro
One USD is equivalent to 0.92 EUR.
The euro (EUR), which is ranked ninth on our list of Best Performing Currencies Against The US Dollar, is the official currency of the Eurozone, which consists of 20 of the 27 members of the European Union. The euro, which was first used in physical form in 2002, is a freely floating currency. Notable nations that use it are Spain, France, and Germany. The US dollar is the most traded currency worldwide, with the euro coming in second as the world’s reserve currency. Known as “Fiber,” the EUR/USD pair is the largest traded currency pair, accounting for about 25% of all daily forex transactions.
8. Swiss Franc
One USD is equivalent to 0.88 CHF.
Switzerland and Liechtenstein recognize the Swiss franc (CHF) as the official legal tender. Due to Switzerland’s long history of political stability, people consider the currency a safe haven because of its steadiness. The currency, introduced in 1850, briefly had a fixed exchange rate with the euro before transitioning to a freely floating exchange rate.
Switzerland, one of the most prosperous and stable nations in the world, further enhances the appeal of the Swiss franc. In times of economic instability, it provides investors with a safe haven, joining the ranks of other well-known safe-haven currencies like the US dollar (USD) and the Japanese yen (JPY).
As the seventh most traded currency in the world, the Swiss franc is a major actor in the financial scene. Its widespread appeal in other markets highlights its significance for international trade and finance, demonstrating both its stability and the trust that investors have in it during unstable economic times.
7. Cayman Island Dollars
One USD is equivalent to 0.83 KYD.
A well-known offshore financial hub is the Cayman Islands, a British colony in the Caribbean. Introduced in the 1970s, the Cayman Islands dollar (KYD) is the local currency and is fixed against the US dollar, with a rate of exchange of roughly 0.83 KYD for every US dollar. Because of this pegging, it is the only stable currency among the countries of the Caribbean.
The 1974 Currency Law, which updated the parity between KYD and the US dollar to KYD $1 = US $1.20, regulated the exchange rate. This legal framework, established in 1974 and still in place, ensures the stability of the Cayman Islands dollar in relation to the US dollar.
Top 20 Longest Prison Sentences Worldwide
6. Gibraltar Pound
One USD is equivalent to 0.79 GIP.
Our ranking of the Top 15 Currencies Against the US Dollar ranks the Gibraltar Pound sixth. With 1 Gibraltar pound buying 1.27 US dollars (or US$1 equals 0.79 Gibraltar pounds), the Gibraltar pound (GIP) is regarded as the joint fifth-strongest currency in the world.
Officially a British colony, Gibraltar is located near the southernmost point of Spain. Since the 1920s, Gibraltar has fixed the Gibraltar pounds at par with British pounds, so one GIP equals one GBP. Although the coins and notes have British names, Gibraltar exclusively accepts them. You can convert the GIP into British pounds sterling at a 1:1 ratio, although it is not officially accepted. Gibraltar’s economy includes online gaming, financial services, tourism, and navigation. Bunkering, or the supply of gasoline to ships, is another important industry in the nation.
5. Pound Sterling
1 USD is equivalent to 0.79 GBP.
With 1 British pound buying 1.27 US dollars (or US$1 equals 0.79 British pounds), the British pound (GBP) is ranked as the world’s joint fifth strongest currency.
The GBP continues to hold its title as the oldest currency still in circulation even though it is not the strongest. It is also the fourth most traded currency in the world, accounting for over 12.8% of all trades made on the foreign exchange market every day. Britain, which the World Bank ranks as the sixth-largest country by GDP, has been using the pound since the 1400s. The money underwent decimalization in 1971. The pound is a free-floating currency not linked to any other currency, allowing market forces to determine its value.
4. Jordanian Dinar
One dollar is equivalent to 0.71 JOD.
With a value of 1.41 US dollars for every Jordanian dinar (JOD), the US dollar is worth 0.71 Jordanian dinar, making the JOD the fourth strongest currency in the world.
Jordan, a country in the Middle East mostly encircled by land, distinguishes itself from its neighbors by relying less on the export of gas and oil. Jordan has nevertheless encountered difficulties, including slow economic development and rising debt levels. The Jordanian dinar’s strength stems from its peg to the US dollar, which has kept it in circulation since 1950.
Jordan’s first set of banknotes, which were printed in denominations of 0.5, 1, 5, and 10 dinar, demonstrated the nation’s dedication to its currency when it was first formed in 1964. Despite Jordan’s economic volatility, its fixed exchange rate and peg to the US dollar give it stability.
3. Oman Rial
One USD is equivalent to 0.38 OMR.
OMR (Omani rial) is the third most valuable currency in the world, worth 2.60 US dollars or 0.38 OMR per $1. As an oil and gas exporter, Oman follows the economic trends of its affluent neighbors on the Arabian Peninsula.
The introduction of Omani rials in the 1970s and their rapid rise is due to their strategic peg to the dollar. Oil exports contributed significantly to this value increase. 1000 smaller pieces of money called baisa make it unique from conventional money.
Oil has contributed greatly to Oman’s economic growth and shaped the value of the Omani rial. Currently, the Omani rial is worth about 0.38 US dollars per OMR, about twice as much as the pound sterling. It demonstrates Oman’s tenacity and the substantial influence of its oil-dependent economy on its currency value.
2. Bahrain Dinar
One USD is equivalent to 0.38 BHD.
With an amazing exchange rate of 1 Bahraini dinar buying 2.65 US dollars (or US$1 = 0.38 Bahraini dinars), the Bahraini dinar (BHD) is the second strongest currency in the world.
In the Persian Gulf, Bahrain is an island nation that exports gas and oil, largely to its neighbor Kuwait. Bahrain’s dinar was first introduced in 1965 and represents the nation’s economic strength.
Bahrain’s economy is distinguished not only by its gas and oil industry but also by its advantageous location as the Gulf region’s financial center. Bahrain has made a name for itself in the international financial scene thanks to its booming financial services sector. The nation’s commitment to infrastructure development, technological innovation, and economic diversification has facilitated its durability and steady growth.
1. Kuwaiti Dinar
One USD is equivalent to 0.31 KWD.
With an amazing exchange rate of one Kuwaiti dinar purchasing 3.25 US dollars, the Kuwaiti dinar (KWD) is proudly the strongest currency in the world (or, conversely, one US dollar = 0.31 Kuwaiti dinars).
Oil exports have helped Kuwait become a powerful economic force between Saudi Arabia and Iraq. Initially, Kuwaiti dinars were pegged to the British pound and had the same value as one pound sterling. In response to changes in the world economy, Kuwait later tied its currency to a secret currency basket.
The Kuwaiti dinar maintains its status as “the strongest currency in the world” by earning the distinguished distinction of highest-valued currency unit in the world based only on face value, with just 0.31 Kuwaiti dinars needed for every US dollar. Kuwait’s impressive strength is a result of its strong economic position and significant contributions to the global oil market. Kuwait is a prominent player in the oil sector and a symbol of financial importance and economic strength in the middle of the Middle East.
