1. Kuwaiti Dinar (KWD)
One Kuwaiti dinar buys US$3.28
The Kuwaiti dinar is another
currency that benefits from crude oil, yet its history is a tangled mess. The
currency first came online in 1961, valued at 1:13.33 against the Indian rupee,
then went on to be measured against a basket of other currencies. They
momentarily adopted the Iraqi dinar during the Gulf War and later pegged the
Kuwaiti dinar to the U.S. dollar. However, it’s been free floating since 2007
and in 2013, it became the most expensive currency in the world.
2. Bahraini Dinar (BHD)
One Bahraini dinar buys US$2.65
The Bahraini dinar is certainly
buoyant because of its ties to Saudi Arabia and the oil market, but it has one
additional factor in its column. Bahrain is the home of an American naval base
that is crucial to U.S. influence in the region. Its strategic importance gives
the Kingdom of Bahrain an outsize role in foreign affairs, which has also cemented
its currency’s costly stature.
3. Omani Rial (OMR)
One Omani rial buys US$2.60
The Middle East has been in a
bind since oil prices collapsed in the summer of 2014. Quite frankly, the real
issues began when oil prices were above $100.00 a barrel, giving U.S.
extractors the margins to fully develop shale technology. The resulting oversupply
has decimated the crude oil market, but even so, the Omani rial is still
outrageously expensive at $2.60.
4. British Pound (GBP)
One British pound buys US$1.42
While the U.S. dollar gained on
most currencies in the last year, the British pound ended 2015 on a positive
streak. The pound sterling is still really expensive for Americans. It’s
embarrassing whenever you hand a fistful of greenbacks to currency converters
and only get back little more than half that quantity. It looks like poaching
Mark Carney (formerly of the Bank of Canada) to run the Bank of England was a
great idea for the pound.
5. Euro (EUR)
One euro buys US$1.09
Despite its terribly
dysfunctional economic and political systems, Europe still managed to keep the
euro above the U.S. dollar. It remains one of the most expensive currencies on
the planet, which is tragic for anyone who likes visiting Rome or Paris. I’m
personally expecting the euro to slide down the list in 2016.
6. Swiss Franc (CHF)
One Swiss franc buys US$0.99
Switzerland’s famously
secretive banking sector made the national currency a safe haven for
international capital. The country pegged the franc to the euro when it joined
the currency union, opting for a dual system rather than choosing to abolish
the franc. However, it let the franc float freely last year, causing a sharp
appreciation in the CHF to USD exchange rate
7. Libyan Dinar (LYD)
One Libyan dinar buys US$0.74
During the so-called Arab
Spring, Libya was plunged into chaos. Its iron-fisted dictator, Muammar
Gaddafi, was overthrown by a raging populist movement that failed to unify the
country. Nonetheless, Libya’s bountiful supply of oil kept the nation’s
currency in good standing. Even after the price slump in crude, it remains
number seven on our list.
8. Bruneian Dollar (BND)
One Bruneian dollar buys
US$0.70
Brunei is a tiny nation found
in Southeast Asia. Nestled between Malaysia and the South China Sea, this
little country has an extremely high GDP per capita. Although the currency has
fallen from its US$0.83 peak five years ago, the Bruneian dollar still packs a
big punch in global forex markets.
9. Singapore Dollar (SGD)
One Singapore dollar buys
US$0.70
After gaining independence in
1965, Singapore’s currency, the Singapore dollar, came into existence as a
pegged currency, first to the British pound and then to the U.S. dollar.
However, the currency started free floating 20 years later, giving the SGD room
to run. Its value has skyrocketed as Singapore became an intellectual hub of
the East. With the country beating gross domestic product (GDP) forecasts in
the last two quarters, the SGD is looking strong.
10. Australian Dollar (AUD)
One Australian dollar buys
US$0.69
The Aussie is a commodity-based
currency, much like the Canadian dollar, but with the added exposure to Japan
and Far East trade. 2015 was a horrendous year for the natural resource sector
and that’s shown plainly enough in the currency’s value down under, but it
still clinched the final spot on our top 10 most expensive currencies list.
