The Strongest (and Weakest) Currencies in the World Compared to the U.S. Dollar

Calculating How Much You Should Invest in Your Self-Directed IRA in a Different World Country

If you are a U.S. citizen, love to travel, or are invested, as so many are, in how the U.S. economy is doing, you might be curious about how much the U.S. dollar is worth around the world. What are the U.S. dollars in your Self-Directed IRA worth in other currencies? Whether you’ve invested for years or you just started putting money away into your Self-Directed retirement account, it’s always good to have an idea of where you are in your retirement saving journey.

Travel in Retirement Using Your Self-Directed Roth IRA Retirement Funds

Many retirees dream of traveling during their golden years. Saving in a Self-Directed Roth IRA helps you to achieve that retirement goal. To give you an idea of how far your Roth IRA funds would get you in other countries around the world, the team at Madison Trust has researched currencies around the world and how global currencies compare to the U.S. dollar to create this comprehensive visualization:

The Strongest (and Weakest) Currencies in the World Compared to the U.S. Dollar - MadisonTrust.com IRA - Infographic

How Much Is the Dollar Worth in Canada? How Much Would Your IRA be Worth if You Directed Your Self-Directed IRA Custodian to Make a Withdrawal and Then Went to Canada?

A U.S. dollar will buy you around 1.35 Canadian dollars. Keep in mind, though, that exchange rates fluctuate constantly. So, if you directed your Self-Directed IRA custodian to make a withdrawal and then went up to Canada and exchanged that money, you’d, currently, have a bit more in Canadian dollars.

How Much Is the Dollar Worth in Mexico?

As of Sept. 1, an American dollar was worth 16.74 Mexican pesos.

How Much Is the Dollar Worth in Japan?

You can buy around 245 Japanese yen with an American dollar.

Is the U.S. Dollar Strong?

According to the International Monetary Fund, the value of the U.S. dollar reached an all-time high in 2022, so yes, the dollar is pretty strong.

Is a Strong U.S. Dollar Bad for the World?

For U.S. consumers, a strong U.S. dollar means cheaper imported goods and more affordable foreign travel. However, U.S. companies that export or rely on global markets can suffer financially due to dollar value increases. A strong U.S. dollar also feeds into inflation pressures abroad; when a country’s currency weakens against the U.S. dollar, the price of American imports rises. On average, a 10% appreciation in the value of the dollar inflates prices around 1% abroad.

What Currency Is Strongest Against the Dollar?

If you’re wondering what currencies are better than the U.S. dollar, the best answer would be the Kuwaiti dinar (KWD), the official currency of Kuwait, which is the strongest currency in the world. The USD to KWD exchange rate is 0.31, which means that one Kuwaiti dinar is worth roughly $3.

Why Is the Kuwaiti Dinar So Strong?

The Kuwaiti dinar is so valuable because the demand for it is so high. This is due to Kuwait having a strong, stable economy backed by vast oil reserves.

Other currencies that are stronger than the U.S. dollar include the Bahraini dollar, the Oman rial, the Jordanian dinar, and the Gibraltar pound.

What Is the Weakest Currency in the World? Can a Gold IRA Help in This?

The weakest currency in the world is the Iranian rial (IRR). The USD to IRR operational rate of exchange is 371,992, meaning that one U.S. dollar equals 371,922 Iranian rials. Investing in gold with Self-Directed Gold IRAs may be advisable for those who are looking to invest in alternative assets that don’t feature volatility similar to that of global currency. Gold IRAs have historically held their value when other assets have fluctuated with the market.

Why Is the Iranian Rial So Weak?

U.S. sanctions against Iran play a major role in the weakness of the Iranian rial. When the United States withdrew from the 2015 nuclear deal between Iran and world powers in 2018, it also reinstated sanctions on various Iranian sectors. Political unrest, protests, and a lack of diplomacy also contribute to the poor value of the Iranian rial.