Forex is the No. 1 market all over the globe in terms of demand and popularity. It provides numerous opportunities to generate revenue from the fluctuations in different currency pairs. Those that include the USD are the most frequently speculated and are known as major pairs. And this has nothing to be wondering about.
The USD holds a prominent position among the world’s most valuable fiat assets. While the euro is the USD’s primary competitor, the exchange rate has varied over the years. Despite the fact that stronger currencies tend to be more valuable, certain factors, such as historical inflation, may weaken them. Let’s explore 5 currencies, which have higher rates than the US dollar as of April 2023.
EUR
The EUR (Euro) takes the second position in the rating of the prime currencies for trading and international financial operations. It is the official asset of 19 of the 27 European Union (EU) member states, as well as some territories of the EU. EUR is a relatively young asset, introduced in 1999 as an electronic product and in 2002 as physical banknotes and coins.
The European Central Bank (ECB) manages the Euro and sets its monetary policy. States included in the Eurozone share a common monetary policy, meaning that the interest rate is the same for all of them. However, they still have their own fiscal policies and budgets. This can sometimes cause economic imbalances within the Eurozone, leading to debates about the feasibility and effectiveness of the shared currency.
The Euro has fluctuated in value against other major fiats over the years, due to different circumstances such as the financial performance of EU countries, political events, and overall economic conditions all playing a role in determining its exchange rate. Despite some challenges, the Euro remains one of the strongest currencies, and even the fact that in mid-2022 EUR fall lower than the USD for a short period for the first time in its history didn’t make it less demanded among traders.
As of April 2023, the EUR is worth 1.10 USD.
KYD
The KYD is the currency of the Cayman Islands, a British Overseas Territory in the western Caribbean Sea. It is abbreviated with the symbol “$” and is pegged to the US dollar at a fixed rate of 1 KYD to 1.20 USD. This means that the value of the KYD remains stable against the USD, making it a reliable currency for international trade.
The KYD was launched into circulation in 1972 when it replaced the Jamaican dollar as the official currency of the Cayman Islands. Since then, the KYD has become an integral part of the country’s economy, which is largely based on offshore banking, tourism, and financial services.
The Central Bank of the Cayman Islands is responsible for issuing and regulating the KYD, ensuring its stability and reliability. In recent years, the Cayman Islands have become a popular destination for international businesses and investors, due in part to the strength and stability of the KYD.
GBP
The British pound (GBP), also known as the pound sterling, is the banknote that has one of the richest histories in the world. It spans many centuries, dating back to the Anglo-Saxon era. Today, asset takes the fourth position in the forex, behind the USD, the euro, and the Japanese yen.
As with other financial products, GBP exchange rates are affected by a variety of economic factors, including inflation, interest rates, and political events. The Bank of England, the UK’s central bank, plays a critical role in regulating the country’s monetary policy and maintaining the stability of the pound.
The pound is also closely tied to the UK’s relationship with the European Union and its Brexit negotiations. The uncertainty surrounding Brexit has caused significant fluctuations in the value of the pound in recent years, making it a challenging currency to predict in the short term.
Despite these challenges, the pound remains a vital currency in the global economy and is widely used for international trade and investment.
Today, it’s worth 1.25 USD.
OMR
The Omani Rial (OMR) is the official currency of Oman, which is located on the southeastern coast of the Arabian Peninsula. Introduced in 1973, the OMR is subdivided into 1000 baisa. The Omani Rial is pegged to the U.S. dollar at a fixed exchange rate, which means that the Central Bank of Oman guarantees to exchange Omani Rials for U.S. dollars at a fixed rate of 1 OMR to 2.60 USD.
The Omani Rial is considered one of the most valuable currencies in the world due to its stability and the country’s strong economy. As an oil-rich nation, Oman’s economy heavily relies on the export of oil and gas. The government has also invested in other sectors, such as tourism and infrastructure, to diversify the economy.
Although the Omani Rial is not widely traded on the global forex market, it is still an important currency in the Middle East region. It is commonly used for transactions in Oman and is also accepted in neighboring countries like the United Arab Emirates and Yemen.
KWD
The Kuwaiti dinar (KWD) is the official currency of Kuwait, a small country located in the Middle East. It is one of the most valuable currencies in the world, with a high exchange rate against other major currencies. The KWD is divided into 1,000 fils, and banknotes come in denominations of ¼, ½, 1, 5, 10, and 20 dinars.
The KWD is known for its stability and is widely accepted in international trade. This is due to the country’s strong economy, which is heavily reliant on its vast oil reserves. The KWD is also popular among investors who seek to diversify their portfolios with currencies other than the US dollar or the euro.
Although the KWD is a valuable currency, its use is limited outside of Kuwait, and it can be difficult to exchange it in other countries. Therefore, travelers are advised to exchange their KWD for the local currency before leaving Kuwait.
Its rate to USD is 3.26.