Top 10 Most Valuable Currencies in the World in 2024

Many countries and territories have their legal tender that they control for economic reasons. The UN recognizes nearly 200 different currencies with some being legal in multiple countries and territories. Of course, not every currency is going to be the highest currency in the world in terms of value or use as well as the most expensive currency to trade for. With so many different currencies, which are the top 10 most valuable currencies in the world?

How Do We Decide What the Most Valuable Currency Is

We decide what the most valuable currency is by a multitude of factors. We look at how much it is being traded by private investors and institutions in forex, we look at how much it is used as a reserve currency by central banks to make proper economic decisions, and we look at the currency’s value.

Top 10 Most Valuable Currencies in the World

1.      The US Dollar (USD).

2.      The Euro (EUR).

3.      The Indian Rupee (INR).

4.      The Japanese Yen (JPY).

5.      The Pound Sterling (GBP).

6.      The Chinese Yuan (CNY).

7.      The Australian Dollar (AUD).

8.      The New Zealand Dollar (NZD).

9.      The Swiss Franc (CHF).

10.  The Canadian Dollar (CAD).

1. The US Dollar (USD), Undisputed King of Trade

The US Dollar (USD) is the most used currency in the world in many aspects despite not being the highest currency in the world in terms of value. In forex, every currency pair that uses the US Dollar is called a major pair because of the large volume of these instruments traded according to Investopedia. You can even see the unquestionable dominance of the US Dollar in the forex trade in research done by Statista, showing how the most prominent currency pairs contain the US Dollar, with it being over 80% of the forex market. Despite the downturn in value in recent years, the forex trade volume is only on the rise for the US Dollar as stated on Wikipedia, but this can explain that traders sell more than they buy the currency in recent times.

The US Dollar is not only influential in the forex trade but also as the currency reserve for central banks worldwide. These reserves are fiscal tools used by banks to help control the value of their local currency through buying and selling others. According to a report made by the US Congress, the US Dollar has fulfilled that role for other currencies to measure their value by buying that currency in reserves since World War II when the US solidified its position as the sole global superpower. Currently, just under 60% of all the global currency reserves are in the US Dollar, nearly three times as much as the next currency. As the IMF, the International Monetary Fund, reports that it is the lowest percentage the currency had in 25 years. Some experts believe this is because of economies trying to decouple from the US hegemony for other currencies, and that this ratio may continue to fall. However, the US Dollar is still the currency to trade in.

2. The Euro (EUR), Playing Second Fiddle

The Euro (EUR) is the official currency of most countries and territories, over 30 of them, making it one of the highest currencies in terms of use and one of the most expensive currencies in terms of value. As shown by Reuters, this number of relevant countries skyrockets to over 50 with the number of countries and territories that pegged their currency to the Euro for political and economic reasons. As presented by Forbes, the Euro has managed to have a higher trade value than the ever-present US Dollar in the past year. As shown by Investopedia, this currency pair of USD/EUR makes nearly one in every four forex trades and it is the most used currency traded by a significant margin.

With all these accolades, the euro is still playing second fiddle to the highest-value currency in terms of use, the US Dollar, both in terms of forex trade and of bank reserves. Despite making astronomic gains compared to it since its introduction in 1999 to combat oil price crises according to the European Union, the EU, it still only counts for less than half of the US Dollar in forex trade and about a third of the US Dollar in terms of global currency reserves. According to Deutsche Welle, despite the Euro being seen as a safe-haven currency like the US Dollar, the higher inflation throughout the EU and the inability to reign in some of the member countries makes it less reliable, and thus, the slow drop we see in the currency’s usage.

3. The Indian Rupee (INR), Currency of the Future

The Indian Rupee (INR) is the official currency of India. The country is now the most populated country in the world as reported by The Guardian. This gives the country a bright future as they will have a numerous young population to create an economy to rival the biggest ones in the world. The Economic Times projects the country to be the second-largest economy in the world by 2075, thanks to its large population. This is not a surprise that according to the Indian Express, the Indian government is pushing for the globalization of the Indian Rupee as it already has over 1.4 billion users. However, this will be a long-term process that includes bilateral trading agreements between India and other countries as well as issuing tax-free bonds to encourage investments in the local economy.

4. The Japanese Yen (JPY), Debt to the Past

The Japanese Yen (JPY) is in the opposite position of the Indian Rupee. The currency is both in third position for the most forex traded currency as well as the most reserved currency by central banks worldwide as both are shown on its Wikipedia entry, making it now one of the most valued currencies in the world as one of the highest value currencies for traders. However, according to the World Bank, the Japanese debt to GDP (gross domestic product) ratio is one of the highest in the world. This is partly due to them supporting a large aging and retiree population, currently standing at 21% of the total population, but it is projected to reach 40% by 2050 as Tokyo Review reports. This makes Japan a hyper-aged society with diminished use by its declining populace.

5. The Pound Sterling (GBP), Steady for Now

The Pound Sterling (GBP) is in a similar situation in terms of value to the Japanese Yen in terms of forex trades and use as a reserve currency with similar but lower rates to the Japanese Yen according to its Wikipedia entry. However, it can be argued to be one of the most expensive currencies and one of the highest-valued currencies in the world. As tracked by Bloomberg, the value of the Pound Sterling is about 20% higher than that of the USD, and it is on a moderate but positive trend. This is because of its better fiscal policies over the years and relatively lower inflation rates than the US. Although, as reported by The New York Times, their relative position of strength may be given away due to uncertain government policies currently in the UK as well as the strengthening of other currencies, especially the Japanese Yen, if the British markets would not return to a steady course.

6. The Chinese Yuan (CNY), The Possible Global Dollar

The Chinese Yuan (CNY), or Renminbi, is slowly gaining ground on the global stage. The Financial Times reports its slow but steady internationalization thanks to the sanctions against Russia and its allies as well as strengthening economic ties throughout Asia through the SCO, the Shanghai Cooperation Organization. With Global Times reporting that the Chinese Yuan is nearly 3% of all reserved currency in the world, with CNBC reporting they can be the third largest in 10 years, the currency has a bright future on the global stage.

This is beyond the jump of the Chinese Yuan in forex trading. According to Wikipedia, the currency saw a significant 2.7% uptake in the past 3 years, passing the Australian Dollar as the fifth most traded currency in the world. Bloomberg reports that the currency is entering a period of uptake in value as well, setting up the Chinese economy to be number one in the possible future if these trends continue in the upcoming decades.

7. The Australian Dollar (AUD), Under the Radar

The Australian Dollar (AUD) has a unique role in the global forex trade. Alongside the New Zealand Dollar, their geographical location makes them an early way to trade this currency in the 24/6 open forex markets for early gains as their exchanges open earlier than anyone else. This makes them the sixth and 14th most traded currencies respectively according to Wikipedia. However, 9 News Australia forecasts their economy is one of the worst performing in the Asia-Pacific region with a slow economy, only second to Japan, due to labor shortages among other reasons. This is reflected in their lower volume of forex trades. Also because of their geographical location, they rely on trade in China, and any slowing down there will negatively affect the Australian economy according to the Australian Broadcasting Corporation. This makes their location both a boon and a bane to their trade.

8. The New Zealand Dollar (NZD), Australia but More

The New Zealand Dollar (NZD), as mentioned before, functions similarly to the Australian Dollar. However, the currency is not traded as valuable as this is, partially because it’s not traded as much according to Forbes. Like Australia but not at the same volume, according to the OECD, the New Zealand economy is projected to slow down, lowering the currency’s value. The BBC reports as well that the high-interest rates around the world are the main cause of the low trade volume and value compared to prominent currencies.

9. Swiss Franc (CHF), Neutrality Is Key

The Swiss Franc (CHF) is one of the highest-value currencies in the world. It beat both the US Dollar & the Euro in value as reported on Forbes. This strength makes it the eighth most traded currency in forex according to Wikipedia. With its economy heavily tied to the Eurozone surrounding it, the Swiss economy is bouncing back despite the global economic woes as stated by Trading Economies. The Swiss Franc’s future is tied to the Euro.

10. Canadian Dollar (CAD), America’s Hat

The Canadian Dollar (CAD) benefits from close economic ties to the US like the Swiss Franc does with the Euro. It is the seventh most traded currency in forex according to Wikipedia, and it is on the rise. Canada’s economy shifts through energy, but as reported by the Financial Post, global warming and its wildfire impede any further development in the great white north. Despite being 25% lower than the US Dollar, however, as RBC Economics researched, they follow the same downturn trends as the US in terms of unemployment, personal debt, and interest rates.

Conclusion

The highest-value currency in the world is the one that is the most used by both public institutions like central banks and private institutions like trading funds. The most expensive currency might find itself under-utilized because it does not find itself popular enough due to a small or declining population, not being viewed as safe enough to trade it, or the country itself not having enough bilateral trade agreements or unilateral trade leverage to be viewed as a currency worth investing in.

The current financial hegemony of certain currencies and certain economies will not change in a heartbeat. It will take decades to have a new currency as the highest-value currency in the world. Also, the value of a currency is measured between them, so the most expensive currency in the world may be a new one in the upcoming decades.