Most people agree that the US dollar is the most dominant currency in the world. But unexpectedly, out of the 180 or so currencies, it's not the strongest.

Most people agree that the US dollar is the most dominant currency in the world. And it is unquestionably the currency that is exchanged the most on a worldwide scale.

But unexpectedly, out of the 180 or so conventional "fiat" currencies, the US Dollar is not the strongest.

How are foreign currencies valued?

Pairs of foreign currencies are traded, such as buying British Pounds with Euros. Therefore, the price of a currency is always determined by its "exchange rate" with another currency.

The majority of currencies are "floating," which means that supply and demand determine how much they are worth. Some currencies, however, are "pegged," which means that the exchange rate at which they are valued in relation to another currency (such as the US dollar) has been set.

The price of products and services in a foreign currency is impacted by exchange rates. For instance, a vacation to Germany would cost more in sterling terms if the pound dropped in value versus the Euro.

Although changes in the currency rate also present a chance for investors who want to engage in profitable foreign exchange trading.

Below is the list of the strongest currencies according to Forbes:

Kuwaiti dinar (KWD)

• £1 equals 0.31 Kuwaiti dinars
• The Kuwaiti dinar is the strongest currency in the world.

Bahraini dinar (BHD)

• £1 equals 0.47 Bahraini dinars

Omani rial (OMR)

• £1 equals 0.48 Omani rial

Jordanian dinar (JOD)

• £1 equals 0.89 Jordanian dinar

British Pound (GBP)

• £1 equals £1 British pounds
• According to the World Bank, Britain is the sixth-largest nation in terms of GDP. The British pound was initially used in the 1400s and decimalized in 1971. It is not tied to other currencies since it is free-floating.

Cayman Island dollar (KYD)

• £1 equals 1.04 Cayman Islands dollars

Gibraltar pound (GIP)

• £1 equals £1 Gibraltar pounds

Swiss Franc (CHF)

• £1 equals 1.11 Swiss francs
• Because of Switzerland's political stability, the Swiss franc is the country's and Liechtenstein's official legal money and is regarded as a safe haven.

Euro (EUR)

• £1 equals 1.13 euros
• The official currency of the Eurozone, which comprises 20 of the 27 nations that make up the European Union, is the euro. The actual money went into use in 2002 and is now floating.

US dollar (USD)

• £1 equals 1.24 US Dollars
• The US dollar ranks as the tenth-strongest currency globally.
• The US dollar, which was established in the 1700s, is accepted as legal money in the USA, other US territories, and independent countries like Zimbabwe and Ecuador.
• According to GDP, the US has the greatest economy in the world, and the US dollar is by far the most widely traded currency worldwide.
• The US dollar is used to price a variety of commodities, including oil, gold, and copper. It is also the largest reserve currency in the world and the currency that central banks hold the most of.

(Forbes.com, wealthygorilla.com)