The world's strongest currency belongs to this tiny country - worth way more than pounds

People will remember the glory days of the Great British pound sterling, when a single pound would get you at least two dollars and only slightly less euros. But now with the pound only worth $1.34 and an even more meagre €1.15, it's safe to say those days are far behind us. But that message can't be said for one tiny country with a population less than Yorkshire that has a value with two and a half times more than the pound and more than three times that of a dollar.

While people may assume the US dollar reigns supreme, several currencies have actually shone for being even more valuable. Although your head may jump to Scandinavian countries or even the likes of Japan and Singapore, it's Kuwait that holds the title of having the world's strongest currency. One Kuwait dinar is currently valued at a staggering $3.26 and £2.43.

Fred Harrington, a financial expert at Vetted Prop Firms, analysed the world's strongest currencies to look at their real-world purchasing power, exchange rates and investor confidence.

"What makes a currency truly powerful goes far beyond its exchange rate," explains Harrington. "The strongest currencies combine high value with rock-solid institutions, economic stability, and the kind of global trust that weathers any storm."

The dinar's rock-solid strength comes from the country's backbone of massive oil reserves and one of the highest GDP per capita out of any country in the world.

The finance guru added: "Kuwait's currency management is exceptionally disciplined; they peg their dinar to a basket of currencies rather than just the dollar, which provides stability while protecting against single-currency volatility."

In second place and echoing many of the sentiments that make the Kuwaiti dinar so strong is the Bahraini dinar. The island nation just south of Kuwait and only connected to Saudi Arabia by a 15km bridge, has a strong currency with 2.65 times more than the dollar and 1.97 times more than the pound.

Again, the currency is backed by the nation's huge oil exports and, with a direct pegto the US dollar, provides stability and avoids much of the volatility.

The rest of the top 10 list echoes the strength oil wealth can give a currency, with the third and fourth going to the Omani rial and the Jordanian dinar.

The British pound and the Gibraltar pound take fifth and sixth place, respectively, while the euro and dollar take ninth and tenth place, respectively.

Mr Harrington added: "The strongest currencies share several key characteristics: they're backed by stable governments with sound fiscal policies, supported by diversified economies or substantial natural resources, and most importantly, they maintain global trust.

"Oil wealth clearly plays a large role for currencies like the Kuwaiti Dinar and Omani Rial, but it's not the only path to strength.

"Similarly, the Jordanian Dinar proves that strategic currency pegs and international partnerships can create stability, even without natural resource wealth."