Do you know which is the most expensive currency in the world and where it’s from? Do you think it might be the dollar or the euro?

Neither one nor the other.

The Kuwaiti Dinar—from Kuwait—is currently the highest-valued currency in the world. And it’s very likely to keep its position this 2025.

Want to know why?

In this post, we’ll analyze the reasons behind this currency and the other 9 main currencies dominating the market.

The World’s Most Expensive Currencies: 2025 Ranking

How Is a Currency’s Value Determined?

Have you ever wondered how expensive or cheap currencies are determined?

A currency’s value is determined by key economic factors and its behavior in international markets.

The main criteria include:

• Supply and demand. When a currency is in high demand for foreign trade or as a reserve, its value rises.

• The country’s economic and political stability. This builds trust in its currency.

• Monetary policies set by central banks. These are crucial for maintaining or strengthening a currency’s value.

Other important factors are competitive interest rates and low inflation, as well as backing from international reserves such as gold or oil.

Why Currencies Are Important in a Country’s Economy

Currencies are vital to economic activity and global trade.

• When a currency is strong, it allows the country to buy foreign products and services at a lower cost. This benefits both consumers and businesses that rely on imports.

• However, it can negatively impact exporters because local goods might lose their edge in international markets.

• Exchange rate fluctuations, like devaluation, can severely affect economies, reducing purchasing power and driving inflation.

Consequently, countries often implement economic policies to protect local industries and balance global competitiveness. A currency, in short, is key to a nation’s economic growth and stability.

The Kuwaiti Dinar: The Most Expensive Currency in the World

There are several reasons why the Kuwaiti Dinar (KWD) is currently recognised as the world's most valuable currency.

Chief among them is Kuwait's economic stability, with revenues coming from its large oil reserves. Exports are its main source of national wealth, allowing the government to maintain a sound fiscal balance. 

The stable political environment in the country also contributes to a favourable climate for business and foreign investment. Both factors help to further strengthen its currency.

Added to this is the low inflation in Kuwait and the dinar's peg to the basket of currencies. This helps to reduce exchange rate volatility and bolster investor confidence.

This combination of factors has made the Kuwaiti dinar the most expensive currency in the world. In fact, it is worth more than other hard currencies such as the US dollar and the euro.

Which Other Currencies Round Out the Top 10 Most Expensive?

We’ve already explained which is the most expensive currency in the world and its origin, but we still need to detail the other nine.

Here is the complete list of the most expensive currencies in the world:

1. Kuwaiti Dinar

As mentioned, it’s among the most valuable worldwide, thanks to the country’s strong economy propelled by oil and gas exports. Kuwait’s effective management has kept the currency stable in the long term.

2. Bahraini Dinar

Bahrain’s official currency is among the most expensive due to its oil production and natural gas reserves. It’s also influenced by its role as a financial hub in the Persian Gulf. Moreover, its peg to the US dollar provides additional stability.

3. Omani Rial

The high cost of the Omani Rial is backed by a solid economy resulting from government-controlled financial policies. Oil, fishing, and ongoing diversification are vital to the country’s economic structure.

4. Jordanian Dinar

One reason the Jordanian Dinar is one of the most expensive in the Middle East is its peg to the US dollar. Strict monetary policies have also allowed the country to build confidence in its local financial market.

5. Pound Sterling

The pound sterling is a very important currency worldwide, as well as being one of the oldest currencies. The strength of the British economy and international trade have been essential in keeping it among the most powerful currencies. 

6. Cayman Islands Dollar

The Cayman Islands Dollar has a high value reflected in the Caribbean territory’s status as a tax haven. International investors who do business there play a significant role in maintaining the currency’s high value.

7. Swiss Franc

The Swiss franc is highly valued on international markets as it is considered the most stable currency in the world. The country's financial strength, political neutrality, and low national debt contribute to the strength of its economy.

8. Euro

Among European currencies, the euro, or single currency, is the most widely used, by at least 341 million people on a daily basis. It is also very popular in global trade. The economic and financial stability of the region contributes to its strength in global markets.

9. US Dollar

The value of the US dollar is underpinned by the country’s robust economy. It plays a major role in international transactions, financial markets, and even as a reserve currency for other nations. This makes it the most widely used reserve currency in the world.

10. Canadian Dollar

The Canadian Dollar is one of the world’s most important and traded currencies. Its value is strongly linked to exports of natural resources, such as oil and minerals, which bolster the currency in commodity markets.

World Currencies and Their Value in Pesos:

The data are references based on xe.com’s exchange rates as of September 2025.

Factors Affecting the Value of the World’s Most Expensive Currencies

The world’s most expensive currencies stay in privileged positions thanks to specific conditions that help them stand out.

Their value depends on exchange rates, along with a series of economic and political factors that determine their strength and stability on the global market.

Most relevant factors include:

• Solid and stable economies

• Controlled inflation

• Interest rates

• Responsible monetary policies

• Natural resources

• Investment appeal

• Global demand

• Confidence in the economy

• Positive trade balance

Pegging to the US dollar also provides exchange-rate stability.

Conclusion

The world’s most expensive currencies essentially reflect their nations’ stability, sound financial management, and natural resources. Factors such as low inflation, monetary policies, and global demand remain vital to maintaining their strength.

The currencies mentioned are references for financial strength and reliability. If they keep on the right track, they’ll likely maintain their status as the most expensive in 2025.

Fortunately, you can handle your money in one of them via DolarApp. Through us, you can get details for an account in digital dollars, in a simple and secure way.

That way, you can pay in USDc, streamlining transactions in global markets. Plus, our app is an efficient alternative for safeguarding the value of your finances and facilitating international transfers.

Frequently asked questions

What is the most expensive currency in the world and where is it from?

The Kuwaiti dinar (KWD) is the currency with the highest value per unit in the world. It is the currency of Kuwait and its strength is associated with oil revenues and conservative fiscal policies.

What is the cheapest currency in the world?

In 2025, the cheapest currency per unit is the Lebanese pound (LBP): 1 LBP = 0.00001115 USD. This leaves the Iranian rial in second place in 2025: 1 IRR = 0.000023724 USD. 

What is the most expensive currency in Latin America?

The Panamanian balboa (PAB), from Panama, although technically it belongs to Central America, but the country is considered part of Latin America. If we leave it out, the most valuable would be the Peruvian sol (PEN).