| The Kuwaiti Dinar (KWD) is the most expensive currency in the world in 2024. It is the currency which has the highest value with respect to the Indian Rupee. 1 KWD = 270.99 INR (28 Mar 2024) |
Have you ever wondered which are the 10 most expensive currencies in the world?
The value of a nation’s currency shows its economic health, political stability, and effectiveness of its monetary policy.
In this article, you’ll find out which 10 countries have the most expensive currencies. This list is made based on how much INR it takes to buy 1 unit of foreign currency.
Also, you’ll learn what makes these currencies expensive and the forces behind them.
List of Most Expensive Currencies in 2024
| Currency Rank | Currency & Symbol | Value in Rs (As on 28 Mar 2024) |
| #1 | Kuwaiti Dinar (KWD) | 1 KWD = INR 270.99 |
| #2 | Bahraini Dinar (BHD) | 1 BHD = INR 221.18 |
| #3 | Omani Rial (OMR) | 1 OMR = INR 216.58 |
| #4 | Jordanian Dinar (JOD) | 1 JOD = INR 117.61 |
| #5 | British Pound (GBP) | 1 GBP = INR 105.36 |
| #6 | Gibraltar Pound (GIP) | 1 GIP = INR 105.36 |
| #7 | Cayman Island Dollar (KYD) | 1 KYD = INR 100.10 |
| #8 | Swiss Franc (CHF) | 1 CHF = INR 92.29 |
| #9 | Euro (EUR) | 1 EUR = INR 90.11 |
| #10 | United States Dollar (USD) | 1 USD = INR 83.36 |
- Kuwaiti Dinar
The Kuwaiti Dinar continues to maintain its status as the most expensive currency in the world in 2024.
What makes it expensive?
Kuwait is one of the richest countries. Its economy is mainly powered by its extensive petroleum reserves, leading to a high GDP per capita. This wealth is reflected in the dinar’s strength, supported by a substantial trade surplus, and low inflation..
- Bahraini Dinar (BHD)
The Bahraini Dinar stands at Rs 221.01 per 1BHD in 2024, ranking it as the world’s 2nd most expensive currency.
What makes it expensive?
Bahrain’s economy, while smaller compared to other Gulf states, benefits from diversified interests. Petroleum is the main export driving their economy, accounting for 70% of government revenue. Export of Aluminium, finance and construction materials also significantly contributes to their economy. Since all these products and services are globally sought after, this has created a demand for Bahraini Dinar, keeping its value up.
- Omani Rial (OMR)
The Omani Rial lays claim to the title of the 3rd most expensive currency in the world.
What makes it expensive?
If you’ve read so far, you’d have noticed a pattern. The top 3 most expensive currencies are from the small Gulf countries and the main reason for this is their extensive oil deposits. They have more exports compared to imports making the value of their currency so high.
Oman is another Gulf country which has benefitted from a surplus of oil exports. The stable oil revenues, followed by revenues from the cement industry support the OMR’s strong valuation.
- Jordanian Dinar (JOD)
Jordan, another Gulf country, comes 4th on the list of countries having the most expensive currencies.
What makes it expensive?
Jordan, unlike the other Gulf countries, does not have rich oil reserves. It has another far more simple reason for having such an expensive currency. The Jordanian Dinar is pegged to the US Dollar at the rate of 1 JOD = 1.41. It is a fixed exchange rate.
This means that when the value of the US dollar goes up, accordingly the value of the Jordanian Dinar moves up in tandem.
| Note: Pegging may seem like a magical solution to keep a currency’s value high. You might be thinking, why not peg the INR to the USD in a similar way? However, it has its downsides. The Central Bank of Jordan loses out access to mechanisms to adjust the value of its currency in the open market. These mechanisms are most required when a country is undergoing a recession, or experiencing ballooning growth such as inflation and similar fluctuating economic circumstances. |
Also Read: The Secret Behind Who Determines Exchange Rates in India
- British Pound (GBP)
Honoured as the 5th most expensive currency, the British Pound offers a testament to Britain’s economic stability.
What makes it expensive?
The British Pound’s strength reflects the United Kingdom’s economic influence, marked by its status as the world’s sixth-largest economy by nominal GDP. Also, the UK is a major player in global trade and investment being the fourth-largest exporter and importer, and maintaining strong trade ties with the European Union. These factors, combined with the UK’s extensive outward foreign direct investments, show the Pound’s value.
- Gibraltar Pound (GIP)
Securing a place in the top ten, the Gibraltar Pound currency is the 6th most expensive worldwide.
What makes it expensive?
The Gibraltar Pound’s high valuation stems from its direct peg to the British Pound Sterling (GBP). The pegging is done at the rate 1GIP = 1GBP, ensuring that one Gibraltar Pound consistently equals one British Pound Sterling.
- Cayman Island Dollar (KYD)
Ranking 7th, the Cayman Island Dollar is an expensive currency on the global stage, boasting substantial value.
What makes it expensive?
Pegging.
The Cayman Island Dollar is pegged to the US dollar at the rate of 1KYD = 1.2 USD. As the USD grows in value so does the KYD.
Another reason is The Cayman Islands is informally known as the ‘financial capital” of the Caribbean and is in fact a major banking centre in the world. This is because it’s a tax haven and as a result money from wealthy individuals and businesses flows into the country. Banking & Tourism are the two pillars shaping its economy, giving value to the currency. Their GDP per capita (in 2021) was US $$91,392 which is 40 times than that of India!
- Swiss Franc (CHF)
Claiming the 8th spot, Switzerland’s Swiss Franc reigns as the 8th most expensive currency in the world. It’s a testament to the nation’s economic stability and robust economic framework.
What makes it expensive?
Switzerland is a international tax haven just like the Cayman Islands. They’ve a very strong banking industry with a lot of money coming into the country from wealthy people and business abroad. Their economy is one of the world’s best, consistently leads the Global Innovation Index. With a highly-developed free market and a current account surplus exceeding five percent of GDP. All these factors combined make the Swiss Franc an expensive currency.
- Euro (EUR)
At the 9th rank, the Euro stands out for its considerable value in the international market.
What makes it expensive?
The Euro’s high value is driven by the economic might of the Eurozone, a powerhouse of trade and innovation. Anchored by the European Central Bank’s strict monetary policies and its status as the world’s 2nd most-held reserve currency (only behind the US dollar), the Euro stands as a symbol of stability and confidence on the global stage.
- United States Dollar (USD)
The 10th position is held by the US Dollar, underscoring its key role in international finance. It acts as the defacto global currency, with 59% of the foreign exchange reserves worldwide being in US Dollars.
What makes it expensive?
The US dollar’s prominence isn’t just a testament to the United States’ economic power; it’s a cornerstone of global finance. As the currency of the world’s largest economy, the dollar benefits from a staggering scale of use that transcends national borders, acting as the primary reserve currency held by central banks and institutions worldwide. It dominates over 90% of forex trading and is the standard currency for pricing key commodities like oil and gold. This extraordinary reach and reliance not only boosts the dollar’s value but also affirms its dominance in the world’s financial system.
Also Read: Travelling Abroad? Don’t Bring Back These 10 Foreign Currencies
