First Published: 9th of February, 2022. Guyana, South AmericaLast updated: December 18, 2022 at 20:21 pm
While the United States Dollar is regarded as the gold standard of currencies around the world, did you know that there are some currencies stronger than the US dollar? That’s right. The world’s strongest currency, which comes from the Middle East, is more than 3 times stronger than the US dollar. And this happens to be the currency of a country which got the majority of its wealth from…you guessed it…big oil.
In light of Guyana’s recent explosive oil discoveries, it is envisioned that the Guyana dollar will strengthen over time. One the factors influencing the strength of a currency is the Gross Domestic Product per capita. And Guyana’s Gross Domestic Product per capita is expected to grow exponentially over the coming years due to increasing oil exports.
As Guyana’s currency strengthens over time, it increases the country’s purchasing power, but at the same time makes it more difficult to compete in the export markets due to the increased cost of manufacturing locally – unless provisions are made to reduce the cost of manufacturing products for the export and local markets. This is known as Dutch disease, and it is the reason why managing an oil economy is a delicate and intricate task.
So, without further ado, here are the world’s most powerful currencies.
The Kuwaiti Dinar – No. 1. – The Kuwaiti Dinar is the world’s strongest currency. At the time of this writing (last updated Dec 2022), 1 Kuwaiti Dinar is worth 3.29 US dollars. Kuwait is a rich, oil producing nation of the Middle East. It is arguably the richest country in the world, and its citizens live lives of luxury.
The Bahraini Dinar – No. 2 – The Bahraini Dinar is the second strongest currency in the world. 1 Bahraini Dinar is worth 2.65 US dollar. Bahrain is a Middle Eastern country which initially derived its wealth from oil exports but has since diversified.
The Omani Rial – No. 3 – The Omani Rial is the world’s third strongest currency. 1 Omani Rial is worth 2.60 US dollars. Oman is another oil rich nation of the Middle East with a population of about 5 million.
Other currencies stronger than the United States Dollar include the Jordanian Dinar (Jordan), the Pound Sterling (UK), the Gibraltar Pound (Gibraltar), the Cayman Islands Dollar, the Euro (European Union), and the Swiss Franc.
Although the United States is the world’s most powerful country due to factors such as its landmass, technology, military, and population, the US dollar is actually No. 10 on the list of world’s strongest currencies.
The Guyana Dollar presently stands at about 210 Guyana dollars to 1 US dollar, but all of that is about to change. With increasing oil exports, the strength of the Guyana dollar is expected to climb against the US dollar. Assuming that the economy is managed well, the Guyana dollar has the potential of becoming stronger than the US dollar in less than 10 years.