In this article, we look at the 30 most valuable currencies in the world in 2023. To skip our detailed analysis of the most valuable currencies and the major players facilitating currency exchange, you can head to the 5 Most Valuable Currencies in the World in 2023.
Is the US Dollar on Track?
The US dollar has long been the sole leader in the world. With global transactional dominance at its forefront, the US dollar is known as the primary foreign currency reserve. The dynamics of the dollar influence global economies to act accordingly. The rising dollar impacts the prices of commodities worldwide, including imports and exports. After a period of decline, the dollar seems to be gaining value against other currencies.
On September 5, CNBC reported that the services industry has experienced a significant increase in the past month, contributing to the growth of the dollar to a six-month high. After a rough period of decline against the euro and the British pound, the dollar gained slight power. As the rest of the G-10 countries succumb to expected economic downturns, there are lower chances that the United States may experience anything similar. To further elaborate on the strength of the US dollar, Helen Given, FX trader at Monex USA in Washington, stated:
“It’s clear the US economy remains much stronger by comparison than most of the rest of the G10 and runs substantially less risk of entering a recession. With the UK and the eurozone teetering on the brink of true contraction, investors really have little choice but to place their faith in the US (economy).”
Is De-Dollarization the Future?
Is the Dollar's position as the world leader here to stay? Will other currencies rise to dethrone the US dollar? While many countries have been adopting their national currencies for trade, experts have mixed opinions on the likelihood of such.
On August 24, Reuters reported that Brazil's president suggested that the BRICS nations develop a common currency to facilitate trade and exchange. The goal for such was to prevent any adverse implications of dollar exchange rate volatility. Putin added to the conversation by recommending that the nations trade in their national currencies instead of using the dollar. If this suggestion continues, the dollar may lose its power over global trade and exchange. With more emerging powers being introduced to the BRICS, the threat of de-dollarization persists.
However, on the other end of the spectrum, the likelihood of a possible de-dollarization occurrence seems unlikely. On September 11, Reuters reported that China's central bank took a step ahead to scrutinize bulk dollar purchases by Chinese companies. The new policy prevents companies from purchasing over $50 million without approval from the People's Bank of China (PBOC). The Chinese yuan has been depreciating, and to prevent further decline in the value of the yuan against the US dollar, such measures are deemed necessary by the central bank. The yuan is expected to weaken by more than $7.5 in the future.
The depreciation of the yuan against the dollar limits the chances of de-dollarization. On September 12, Reuters reported that the dollar experienced another rebound after a long period of decline for the past few months. The dollar index rose by 5% and now is at its highest point for the first time in a few months. This has led the yuan to hit an all-time low since December 2007.
Developing trust in a currency requires mass adoption and stability. With the volatile nature of powerful currencies like the Chinese yuan, it is unlikely that any other currency could gain transactional dominance in the foreseeable future. However, the threat of a possible de-dollarization must not be ignored.
International Banks: The Face of Foreign Exchange
International banks are major players in the global market. Some banks own up to their name to act as credible institutions for people worldwide. Some of these companies include Citigroup Inc. (NYSE:C), Goldman Sachs Group Inc. (NYSE:GS), HSBC Holdings plc (NYSE:HSBC), and Morgan Stanley (NYSE:MS). These banks have posed positive growth and a significant profit increase during rising interest rates and the rising dollar.
On September 7, Reuters reported that Morgan Stanley (NYSE: MS) and Goldman Sachs Group Inc (NYSE: GS) are expected to post strong results next year compared to other banks with similar market caps. The two banks could post strong single-digit or slightly lower double-digit digital growth figures in 2024 despite a significant decline in investment banking.
HSBC Holdings plc (NYSE:HSBC) is a universal bank specializing in financial services. The bank is based in London, United Kingdom. The company plays a significant role in the smooth operation of foreign trade and exchange. It enjoys high profitability. On August 1, Reuters reported that the company raised its profitability beyond its target. Moreover, the company also revealed a $2 billion share buyback. The primary reason for this was rising interest rates by the central bank, facilitating the bank with more income and users.
Posing strong earnings is important for international banks. However, banks must not rely on the workings of the interest rate to determine a company's earnings. Companies need to invest where it matters. Citigroup Inc. (NYSE:C) is a multinational investment bank in the United States. The company is one of the largest banks in the United States and is a major player in foreign exchange and trade. On August 24, Reuters reported that Citigroup Inc. (NYSE:C) acquired a stake in Rextie, a Peruvian Foreign Exchange Startup. Rextie is a huge name in foreign exchange. The startup was founded in 2016 and has closed $4.5 billion in foreign exchange. The company processes transitions through its digital platform, fueling foreign exchange growth between countries.
International banks facilitate the transfer and exchange of currencies. Currencies and cryptocurrencies alike are traded internationally and are more likely to be valued by people across the globe. Check out some of the most powerful currencies in the world and the best cryptocurrencies to invest in. With that, let's discuss the 30 most valuable currencies in the world in 2023.
30 Most Valuable Currencies in the World in 2023
Pixabay/Public Domain
Our Methodology
For our methodology, we sourced the exchange rates for our currencies from XRates and we sourced the dollar value of cryptocurrencies from Yahoo Finance. Our ranking was based on each currency's value against the US dollar. The dollar is known as the strongest foreign currency reserve accounting for a major chunk of international trade. Therefore, it is a suitable measure to assess the value of a currency. To account for the rising use of cryptocurrencies across the world, we included them in our list. Cryptocurrencies with a market cap of over $10 billion, as of September 12, were included only. The US dollar tops the list because all currencies are measured against the currency. All exchange rates are as of September 12.
30 Most Valuable Currencies in the World in 2023
30. Trinidadian Dollar
Exchange Rate: $0.15
The Trinidadian dollar ranks as the 30th most valuable currency in the world in 2023. One Trinidadian dollar is worth almost $0.15, as of September 12.
Trade enhances the value of currencies. Some banks facilitating the smooth exchange of currencies include Citigroup Inc. (NYSE:C), Goldman Sachs Group Inc. (NYSE:GS), HSBC Holdings plc (NYSE:HSBC), and Morgan Stanley (NYSE:MS).
29. Brazilian Real
Exchange Rate: $0.20
The Brazilian real is officially used in Brazil and ranks among the most valuable currencies in the world in 2023. The Brazilian real has a total trading volume of almost 4,700, as of September 12.
28. Libyan Dinar
Exchange Rate: $0.21
The Libyan dinar is one of the most valuable currencies in the world in 2023. One Libyan dinar is worth $0.21, as of September 12.
27. Malaysian Ringgit
Exchange Rate: $0.21
The Malaysian ringgit is the 27th most valuable currency in the world in 2023. One Malaysian ringgit is worth $0.21, as of September 12.
26. Romanian New Leu
Exchange Rate: $0.22
The Romanian new leu is officially used in Romania and ranks among the most valuable currencies in the world in 2023. One Romanian new leu is worth $0.22, as of September 12.
25. Polish Zloty
Exchange Rate: $0.23
The Polish zloty is used in the Republic of Poland as the national currency. The Polish zloty ranks as the 25th most valuable currency in the world in 2023. One Polish zloty is worth $0.23, as of September 12.
24. Israeli Shekel
Exchange Rate: $0.26
The Israeli shekel is officially used in Israel and ranks among the most valuable currencies in the world in 2023. One Israeli shekel is worth $0.26, as of September 12.
23. Saudi Arabian Riyal
Exchange Rate: $0.27
The Saudi Arabian riyal is used in the Republic of Saudi Arabia as the national currency. The Saudi Arabian riyal ranks as the 23rd most valuable currency in the world in 2023. One Saudi Arabian riyal is worth $0.27, as of September 12.
22. Emirati Dirham
Exchange Rate: $0.27
The Emirati dirham is used as the national currency in the United Arab Emirates. One Emirati dirham is worth $0.27 and ranks as the 22nd most valuable currency in the world in 2o23, as of September 12.
21. Qatari Riyal
Exchange Rate: $0.27
The Qatari riyal is the national currency used in Qatar. The Qatari Riyal ranks as the 21st most valuable currency in the world in 2023. One Qatari Riyal is worth $0.27, as of September 12.
20. XRP USD (XRP-USD)
Exchange Rate: $0.47
XRP USD is one of the most valuable cryptocurrencies to hold in 2023. The Market cap of XRP USD as of September 12 is $25.17 billion. As of September 12, the price of one XRP is $0.47.
19. Bulgarian Lev
Exchange Rate: $0.55
The Bulgarian lev is the national currency used in Bulgaria. The Bulgarian lev is the 19th most valuable currency in the world. One Bulgarian lev equates to $0.55, as of September 12.
18. New Zealand Dollar
Exchange Rate: $0.59
The New Zealand dollar is the 18th most valuable currency in the world. One New Zealand dollar equates to $0.59, as of September 12. The current trading volume between the New Zealand dollar and the dollar is almost 170,000.
17. Australian Dollar
Exchange Rate: $0.64
The Australian dollar is the 17th most valuable currency in the world. One New Zealand dollar equates to $0.64, as of September 12. The current trading volume between the Australian dollar and the US dollar is almost 180,000.
16. Singapore Dollar
Exchange Rate: $0.73
The Singapore dollar is the 16th most valuable currency in the world. One Singapore dollar equates to $0.73, as of September 12. The current trading volume between the Singapore dollar and the US dollar is almost 210,000.
15. Bruneian Dollar
Exchange Rate: $0.73
The Bruneian dollar is the 15th most valuable currency in the world. One Bruneian dollar equates to $0.73, as of September 12.
14. Canadian Dollar
Exchange Rate: $0.74
The Canadian dollar is the 14th most valuable currency in the world. One Canadian dollar equates to $0.74, as of September 12. The current trading volume between the Canadian dollar and the US dollar is almost 172,000.
13. Tether USDt USD (USDT-USD)
Exchange Rate: $0.99
Tether USDt USD is one of the most valuable cryptocurrencies to hold in 2023. The Market cap of Tether USDt USD as of September 12 is $83.0 billion. As of September 12, the price of one Tether USDt is $0.99.
12. USD Coin USD (USDC-USD)
Exchange Rate: $1.00
USD Coin USD is one of the most valuable cryptocurrencies to hold in 2023. The Market cap of USD Coin USD as of September 12 is $26.07 billion. The price of one USD Coin is $1.00, as of September 12.
11. Euro
Exchange Rate: $1.07
The euro is the 11th most valuable currency in the world. One euro equates to $1.07, as of September 12. The current trading volume between the euro and the US dollar is almost 227,000.
10. Swiss Franc
Exchange Rate: $1.12
The Swiss franc is used as the national currency in Switzerland. The value of the Swiss franc is particularly high. This can be attributed to the growing economy of Switzerland. One Swiss franc equates to $1.12, as of September 12.
9. British Pound
Exchange Rate: $1.25
The British pound is the 9th most valuable currency in the world. One British pound equates to $1.25, as of September 12. The current trading volume between the British pound and the US dollar is almost 1,201.
8. Omani Rial
Exchange Rate: $2.60
The Omani rial is used in Oman as the national currency. The Omani rial ranks as the 25th most valuable currency in the world in 2023. One Omani rial is worth $2.6, as of September 12.
7. Bahraini Dinar
Exchange Rate: $2.66
The Bahraini dinar is used in Bahrain as the national currency. The Bahraini dinar ranks as the 7th most valuable currency in the world in 2023. One Bahraini dinar is worth $2.66, as of September 12.
6. Kuwaiti Dinar
Exchange Rate: $3.24
The Kuwaiti dinar is the primary currency used in Kuwait. The Kuwaiti dinar is the 6th most valuable currency in the world. One Kuwaiti dinar equates to $3.24, as of September 12.
International banks are the face of foreign exchange. Such banks persistently invest in making foreign trade easier. Some examples include Citigroup Inc. (NYSE:C), Goldman Sachs Group Inc. (NYSE:GS), HSBC Holdings plc (NYSE:HSBC), and Morgan Stanley (NYSE:MS).
