The most-traded currencies for global transactions in Oceania are the Australian Dollar (AUD) and the New Zealand Dollar (NZD). Not just on the continent, they are the fifth and 10th on the global ranking.
Also, Australia, New Zealand, and New Papua New Guinea have the largest economy in Australia or Oceania.
But using United States Dollar as the base currency against the local currency, there would be a slight difference, which could be a guide as to which is the most valuable currency on the continent.
Note: AUD is accepted as a legal currency in Nauru, Kiribati, and Tuvalu, the smallest economy in Oceania
On this list, three independent countries on the continent are excluded because they use the USD which is our base for rating.
Countries that adopt the US dollar in Oceania are the Marshall Islands, Micronesia, and Palau. The fact that they adopt the USD doesn’t mean that do not have internal economic problems.
Note: Coming up with a list of the strongest currency in Oceania doesn’t take into account the cost of living in each of the countries in Oceania.
And of course, these countries do not have the same inflation rate because many factors come into play when rating an economy of a country.
So, let’s get started…
Both currencies made the list of 2019 most traded currencies on the global market. And it’s common to find USD/Aussie pairs on global trading platforms like AvaTrade and Oanda.
At the time of publication, $1 would buy 1.39 AUD. This rate isn’t static since they are both top-notch global currencies. However, The Aussie is the most valuable currency in Oceania based on this rate and the margin.
With 4,822,233 people in NZ as of 2020, according to UN data, New Zealand isn’t up to one-third of Lagos State in Nigeria in terms of population, New Zealand is one of the countries that has shown that number is just a figure.
It’s about using the available resources to make positive changes in a country’s economy.
Apart from being on the radar of major countries in the world, the USD/NZD is one of the popular pairs among FX traders on the global stage.
As a major global exporter of whole meat, milk powder, and fruit, the country’s leadership of fantastic economic management has put NZ currency on the list of most important currencies in the international market.
New Zealand Dollar also known as ‘Kiwi’ is a commodity currency. On Wednesday, May 4, 2022, at about 2100hours, 1 USD would buy 1.53 NZD. In Oceania, NZD is the second strongest currency on the continent.
Tonga Pa’anga (TOP) is the official legal tender of Tonga, a small country with less than 200K population. Specifically, the World Bank in its 2020 data put Tonga’s population at 105,697. That’s less than a school district San Diego Unified in California, United States.
With its beach resorts, Tonga continues to partner with its big brothers on the continent, having Australia, and New Zealand as its major import and export partners.
One USD would buy 2.32 TOP, making it the third on the list.
Our number four is Samoa Tala (WST), the official currency of Samoa, a country with 198, 410 population according to World Bank data.
Though not a known pair on forex trading, 1 USD would buy 2.64 WST
The kina is the official currency of Papua New Guinea (PNG) and the third-largest economy in Oceania after Australia and New Zealand.
According to the Human Rights Watch (hrw), PNG is a ‘resource-rich’ country just like many African countries, but close to 40% of its people live in poverty.
At the time of this report, 1 USD would buy 3.52 PGK
Weakest currency in Oceania
Based on the value of vatu, the official currency in Vanuatu against the US dollar, VUV is the weakest currency in Oceania.
USD/VUV was 115.86 VUV Wednesday, May 4, 2022