5. British Pound: 1 GBP = 1.27 USD
Bank of England policymakers generally kept pace with developments in other countries over the last several decades and kept the pound more valuable than the U.S. dollar. The British pound was traditionally worth more than the us dollar, but it declined during much of the 20th century. This decline reversed during the 1980s, and the British pound regained its old advantage over the U.S. dollar.
4. Jordanian Dinar: 1 JOD = 1.41 USD
Like the Cayman Islands Dollar, the Jordanian Dinar was pegged to the U.S. dollar at a higher value. The idea was that a stable exchange would help to attract U.S. investment in Jordan. It is crucial to remember that any country can peg its currency to the dollar at any value. However, the currency must keep its value relative to the U.S. dollar to maintain that peg. Jordan successfully did that during the first two decades of the 21st century.
3. Omani Rial: 1 OMR = 2.60 USD
Oman is yet another country that pegged its currency to the U.S. dollar at a fixed exchange rate. The Omani rial maintained its value against the dollar due to Oman’s historically tight monetary policy and financial restrictions. Omani policymakers have generally restricted the money supply to protect the country against war and conflict in the Middle East. That has impacted the country’s inflation rate, and lending practices in Oman tend to favor risk-averse companies and business ventures.
2. Bahraini Dinar: 1 BHD = 2.66 USD
The Bahraini dinar was pegged to the U.S. dollar at a slightly higher value than the Omani rial. The Bahraini dinar’s yearly average has remained close to its current exchange rate since 2011, despite the significant effect that low oil prices had on Bahrain’s economy. Bahrain’s inflation rate was also modest and relatively stable.
1. Kuwaiti Dinar: 1 KWD = 3.26 USD
The Kuwaiti dinar was the most valuable government-backed currency as of 2020. Some currencies not backed by governments, such as gold and bitcoin, were actually worth far more. Substantial oil production helped augment Kuwait’s wealth and support the value of the Kuwaiti dinar. Over the years, Kuwait amassed a significant soverign wealth fund. The kuwait investment authority manages this fund and helps to ensure that Kuwait remains prosperous.