The World’s Highest Currency Apart from the US Dollar. Did you know that the highest currency in the world today is not the US Dollar but other currencies? Nowadays, people must think that the US Dollar or USD is declared the money with the highest value in the world because it is often found in comparisons.
Other currencies have a value greater than USD. Today’s USD is only used as a reserve exchange rate in the economy between countries. Besides the USD, other currencies are much more potent because of the country’s quality.
The country’s economy determines the level of strength of this value. When a country has a stable economy and exploits a large market, the value of its currency will also be more powerful. This condition is by observers of the analysis of the world economy.
In addition, market sentiment also affects changes in currency values. The Rupiah in Indonesia itself had experienced a decline due to the pandemic problem that threatened the world. However, over time, the Rupiah is getting better with improvements.
The movement of the rupiah value can also strengthen when the economy is stable. Big European countries think that Indonesia can enhance its currency’s value if the nickel market exploitation is controlled. Even so, maintaining, of course, takes a bit of time.
The Condition of the World’s Highest Currency Strengthening
In the process, the state needs to improve its economic and tourism sectors so that the value of its currency can be strengthened. Currently, several countries are better at processing their resources and economy to improve their nominal value.
On the other hand, the decline in the value of the currency was also caused by several factors. Such as inflation and the deterioration of the tourism sector as happened in America. In recent months, the USD has permanently weakened so that other currencies have increased their nominal value.
European countries not affected by the weakening of the dollar are the British Pound and the Euro. Both currencies offset the USD because it is often used as an international medium of exchange. Even so, both of them can not be considered the highest currency in the world.
For example, the Japanese Yen can strengthen with the economy’s stability and its many tourist destinations. Currently, the exchange rate of 1 Japanese Yen is only in the range of 0.88 USD, and it can grow even better yearly by maximizing natural resources and tourism.
As the USD is declining, the Japanese Yen can strengthen its position in the market. This also affects the value of other currencies when there is a problem in the country. Therefore, if the government wants to progress, the economy and tourism factors are the keys.
Currently, three types of currencies have strength far exceeding the USD. The three currencies are the Kuwaiti Dinar from Kuwait, the Bahraini Dinar from Bahrain, and the Omani Rial from the Arabs. All three strengthened the value of their currency due to several determining factors.
The Decisive Factors Behind The World’s Highest Currency
Economic and tourism factors determine the condition of a country. On the other hand, other factors can help a country to move forward. The following are the determinants of the success of Kuwait, Bahrain, and the Arabs in strengthening their currencies.
- KWD (Kuwait Dinar)
Currently, the value of KWD is the strongest because it is 3.30 per dollar. With that value, KWD is believed to be the strongest currency today. Kuwait is a small country. However, developments in its economic sector can increase GDP per capita.
The sector that has become the strength of the Kuwaiti state is the exploitation of oil processing. Due to these conditions, Kuwait’s state strengthened the value of its currency and increased the economy to become stable from year to year as the highest currency in the world.
- BHD (Bahraini Dinar)
The second currency with the highest strength is the Bahraini dinar, with an exchange rate of 2.66 USD per 1 BHD. This condition is caused by the export of black oil and agriculture. Integrated agricultural factors in the development of date palms and tourism are encouraged on the coast.
On the other hand, oil development still has caused the value of this country’s currency to stabilize for decades. Although Bahrain is omitted as one of the ten wealthiest countries, its resources and economy deserve attention from several countries.
- OMR (Omani Rial)
The third highest currency in the world is the Omani rial from Arabia at an exchange rate of 2.60 USD per 1 OMR. The position of the country of Oman is located on the southeast coast of the Arabian Peninsula with good management of natural resources with the help of tourism.
In addition, Oman also offers its citizens a high quality of life. This method effectively increases social inequality and directly improves the economic sector. That way, GDP income is stable, and the people are prosperous.
The Most Popular Currency in the World
As a power, money also has its popularity. The three currencies above are examples of how well the country’s economic development is. But on the other hand, there is still money that is always used as an international medium of exchange other than USD.
The world’s highest currency is not used as an official medium of exchange due to several factors, such as its popularity. For example, some countries do not recognize KWD and BHD as the strongest currencies. This is why international trade does not use it.
Big countries prefer popular money to expedite the transaction process. Some of the popular currencies are EUR (Euro), GBP (Pounds), and USD (US dollar). The three currencies are always used as a legal and internationally recognized medium of exchange.
Several countries, including Indonesia, have approved this recognition. However, the government can use its currency at the current price as the medium of exchange for export or import transactions. For example, the world’s highest currency will be used to export goods.
Later the currency will be changed to the exchange rate of the destination country so that the transaction process is smooth and easy to do. This applies when Indonesia wants to import dates from Bahrain. The transaction process is carried out using Rupiah and BHD exchange instruments directly.
Exchange Rate Differences Become Common Knowledge
The highest currency in the world influences the economy of the country. This condition is caused by the export or import of goods that adjust the exchange rate. Every country needs international trade relations.
When countries with small economies cooperate with developed countries, a gap causes the price of goods to be expensive. This is a common problem in every small country and developing country.
Indonesia is now recognized as a developed country with a better economy. The rupiah exchange rate has been getting better in the last four years. This can continue to improve if the economy, resources, and tourism can be maximized as well as possible.
Even though it imports from developed countries, Indonesia can still adjust its finances by implementing its programs. The value of the highest currency in the world will not be a problem if Indonesia can develop further to strengthen the value of the Rupiah.