You might assume the strongest currency would be the U.S. Dollar (USD) or British Pound Sterling (GBP) as both hold significant influence over other currency pairs. In fact the top 10 most traded currencies pairs all include either the U.S. Dollar or the Pound Sterling and the two together devise the most traded currency pair: GPB/USD.

However, strength here refers to value, and as you’ll learn in this article, there are several currencies valued much higher than the U.S. Dollar and Pound Sterling.

Below is a list of the top ten strongest currencies as of October 2021, you’ll notice the countries all have strong exports or international business dealings that aren’t hampered by competition. On the flip side, some high-export countries like China and India keep their currencies undervalued to remain competitive, as they generally do not hold a monopoly on the products they export.

10: Canadian Dollar (CAD)
Canada’s official currency, colloquially known as the Loonie, is the sixth most traded currency on forex markets. Its value is derived from the country’s wealth of natural resources including crude oil and uranium. However, its value is heavily dependent on the U.S. Dollar, as most of the country’s trade is done with its downstairs neighbor.

9: United States Dollar (USD)
The U.S. Dollar is simultaneously the world’s most traded currency and makes up most federal reserves around the globe. It’s number nine on this list due to the amount of countries and people eager to trade and hold onto the Dollar.

8: Swiss Franc (CHF)
An outlier on this list, the franc did not achieve this placement because of popular exports. Instead, the stability and wealth of Switzerland make it a popular reserve currency. No matter what disasters befall the world, the Swiss Franc is likely to be unaffected, and thus there is a high demand for it.

7: Euro (EUR)
The second largest reserve currency, the Euro is the official currency of the European Union. But you probably already knew that. The economic strength of the 27 countries in the EU give the Euro not just stability but value as well.

6: Cayman Islands Dollar (KYD)
The Cayman Islands placing sixth on this list may seem like a bit of an outlier but consider the sort of business the British overseas territory is best known for. They provide offshore banking licenses for thousands of companies.

In addition, the Cayman Islands Dollar is one of three currencies on this list that maintain a fixed exchange rate to the U.S. Dollar.

5: Pound Sterling (GBP)
The Pound Sterling is the official currency of Great Britain and many of their overseas territories. Some of these territories have their own currencies linked at a one-to-one exchange rate with the Pound.

The Pound specifically is valued higher than the U.S. Dollar because of Britain’s low inflation. At one point the pound was worth nearly five U.S. Dollars, but it has depreciated throughout the last century as Britain lost its vise grip on the world’s economy.

4: Jordanian Dinar (JOD)
The Jordanian Dinar is a significant outlier in this group. Jordan has struggled to grow its economy, and as a nation it holds significant debt. There are few competitive exports coming out of Jordan, however, the Arab country managed to peg its currency to the U.S. Dollar over 20 years ago. This has provided the Jordanian dinar relative stability despite the country’s poor economy.

3: Omani Rial (OMR)
The significant jump in value between the Jordanian Dinar in fourth and the Omani Rial here is due to the country’s strong petroleum production. Sharing the tip of the Arabian Peninsula with Yemen, the country as ample access to the valuable natural resource.

2: Bahraini Dinar (BHD)
Bahrain sits on the Persian Gulf and, like Oman, is a major exporter of crude oil. The country has also pegged its currency to the U.S. Dollar at 2.6008 since 1986.

1: Kuwaiti Dinar (KWD)
The title of the world’s strongest currency belongs to the Kuwaiti Dinar.

Also located on the Persian Gulf, Kuwait receives over 80% of its global revenue from the oil industry. Many of these sells take place with the U.S., giving Kuwaiti and the other top three currencies on this list large reserves of U.S. Dollars to back their own currencies.

The Kuwait Dinar is not widely available for currency trading and even if it was, the stability of the currency makes trading the instrument a low-yield investment when factoring in fees and commissions.

The Kuwait Dinar was previously pegged to the U. S. Dollar. Since 2007 it has been pegged to an undisclosed group of currencies managed by the Kuwaiti Currency Board.