The US dollar is one of the most expensive currencies in the world, but there are others that outperform it. In the international market, the euro is its main rival, even though today, in November 2022, it is slightly below the dollar. These rates usually fluctuate over the years.
In general, more expensive currencies tend to be stronger. This is because weak currencies tend to lose their value over time, such as the Argentine peso. Other strong currencies, however, are less valuable due to the effects of inflation. In the Middle East, for example, the Saudi real is more valuable than most currencies because of its strong economy. In South America, the Brazilian real is aThe Chilean peso is one of the strongest and most expensive currencies in the region. Over time, it has been growing steadily due to a strong economic policy. In contrast, the Chilean peso is also a very reliable currency, and has been growing steadily in recent years.
Learn about some of the world's most expensive currencies below. The rates listed below are those recurring in November 2022.
Most expensive currencies in the world
Kuwaiti Dinar: 1 Kuwaiti dinar = 17.15 Brazilian real
At the top of the world's most expensive currencies we have the Kuwaiti dinar which frequently occupies this position even though it does not rely on a fixed exchange rate. Oil production has contributed to Kuwait's increasing wealth, supporting the value of its currency.
Over the years, Kuwait has accumulated a significant sovereign wealth fund. The Kuwait Investment Authority manages this fund and helps ensure that the country remains prosperous.
Oman Rial: 1 Oman rial = 13,78 Real
The Oman rial has fixed its exchange rate against the dollar, with 1 Oman rial equaling 2.60 U.S. dollars. The currency has managed to maintain its value thanks to the country's oil production, its tight monetary policy, and financial restrictions.
Authorities in Jordan have generally restricted the money supply to protect the country from wars and conflict in the Middle East, which has impacted the national inflation rate. In addition, lending practices in Oman tend to favor risk-averse companies and ventures.
Jordanian Dinar: 1 Jordanian dinar = 7.47 Brazilian real
The Jordanian dinar is, as of November 2022, one of the most expensive currencies in the world. As with the Cayman Islands dollar, its value was set higher than that of the dollar. The aim was to maintain a stable exchange rate to help attract US investment to Jordan.
Any country can peg its currency to any value of the dollar, but must maintain it if it wants to sustain the exchange rate. Jordan managed to do this in the first two decades of the 21st century.
Cayman Islands Dollar: 1 Cayman Islands Dollar = 6.37 Brazilian Real
One of the most expensive currencies in the world is the Cayman Islands dollar. This currency was fixed as being equivalent to $1.20 in the 1970s. This type of rate is difficult to maintain if local economic conditions do not contribute, and if the U.S. increases its interest rates.
The country's status as a tax haven helps maintain the value of its currency.
Pound sterling: 1 pound sterling = 6,03 reals
The Bank of England has generally followed developments in other countries in recent decades, and kept the pound more expensive than the US dollar.
Historically, sterling was worth more than the U.S. dollar. However, its value declined during most of the 20th century. This decline was reversed in the 1980s, and sterling regained its advantage over the dollar.
Dollar: 1 dollar = 5.40 reais
The dollar is one of the most expensive currencies in the world, surpassing the euro in 2022, something that had not occurred in 20 years. The dollar is an important currency on the world stage, as it serves as a central currency in the exchange rate arrangements of several countries.
When a country sets its exchange rate against the dollar, it engages in monetary and sometimes fiscal policies, with the aim of keeping the value of its own currency stable against the dollar. This stability is also important for the world exchange system, and the dollar is one of the pillars of capitalism at the global level.
Euro: 1 euro = 5,41 reals
In November 2022, the exchange rate between the real and the euro keeps the latter still at a higher level. But this weakness of the real is not all bad, as it helps to increase Brazilian exports, as our products become cheaper abroad. On the other hand, it is more expensive to buy from abroad, as we need more currency.
It is the European Central Bank that determines monetary policy in the euro zone, having more independence from national governments than other central banks, as it oversees monetary policy for the entire continent. This independence manages to keep the euro strong, but has also contributed to a debt crisis in certain countries, which have difficulty enabling certain policies to stimulate theireconomies, as in Greece and Italy.