Naira removed from list of weakest currencies in the world, as Nigeria’s currency trades N739 against USD
Many individuals commonly perceive the US dollar as the world’s strongest currency due to its widespread margin trading.
However, recent data from Legit.ng challenges this belief, asserting that the Kuwaiti Dinar has emerged as the strongest currency in a Forbes survey.
In contrast, the Indian Rupee is deemed the weakest currency globally.
Converting 2,000 Indian Rupees to US dollars can ostensibly turn holders into instant millionaires, according to reports.
Currency trading occurs in pairs, such as the Nigerian Naira against the Ghanaian Cedis, with exchange rates determining relative currency values.
While most currencies float in value, meaning their worth fluctuates with supply and demand, some are pegged to another currency, typically the US dollar.
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This fixed exchange rate can impact the cost of goods and services in foreign currencies. A weaker Naira against the US dollar, for instance, would raise prices in Naira terms.
In June 2023, Nigeria announced the free float of its currency, the Naira, leading to a significant decline in its value, with an approximately 80% loss against the US dollar between June and August.
The Central Bank of Nigeria (CBN) consolidated multiple exchange markets into the Investors and Exports (I&E) window, an attempt to unify exchange markets that some analysts consider counterproductive.
Nevertheless, the Naira rebounded against the dollar following CBN intervention, gaining substantial value and causing losses to foreign exchange (FX) speculators.
It now trades at around N739.52 to a dollar in the official market and N860 in the parallel market.
Here are the world’s cheapest currencies:
1. Iranian Rial (IRR): 1 INR = 516 IRR
The Iranian Rial leads the list of the cheapest currencies, largely influenced by the Islamic revolution of 1979 and foreign investor withdrawals.
2. Vietnamese Dong (VND): 1 INR = 284 VND
Vietnam transitioned from a centralized economy to a market economy, but its currency remains heavily devalued.
3. Sierra Leonean Leone (SLL): 1 INR = 278 SLL
This West African currency is adversely affected by poverty, conflicts, and the Ebola outbreak, causing significant depreciation.
4. Lao or Laotian Kip (LAK): 1 INR = 212 LAK
Introduced in 1952, the Lao Kip has maintained a low value despite recent improvements, potentially attracting investors.
5. Indonesian Rupiah (IDR): 1 INR = 179 IDR
Dependent on exports, Indonesia’s currency value has suffered due to decreasing foreign exchange reserves and falling commodity prices.
Others are
Uzbekistani Som – UZS 1 INR = 139 UZS
Guinean Franc – GNF 1 INR = 105 GNF
Paraguayan Guarani -PYG 1 INR = 87 PYG
Ugandan Shilling – USH 1 INR = 45 UGX
Iraqi Dinar – IQD- 1 INR = 17 IQD
