The US dollar is frequently regarded as the world’s strongest currency.
According to a recent Legit.ng analysis, the US dollar is the most actively traded currency in terms of margin but not the strongest.
In a Forbes assessment, the Kuwaiti dinar was shown as the strongest currency.
Indian currency is the weakest in the world
As per reports, converting 2,000 units of Indian currency into US dollars has the potential to transform holders into instant millionaires.
Foreign currencies are consistently traded in pairs, such as when acquiring Nigerian naira in exchange for Ghanaian cedis.
Consequently, currencies are always valued in relation to another currency, known as the exchange rate.
Within the Middle East, some of the world’s strongest currencies are situated, gauged by their performance against the dollar.
The majority of currencies operate on a floating basis, akin to the Nigerian currency, signifying their value varies in response to shifts in demand and supply.
Certain currencies are pegged, signifying their value is linked to another currency, primarily the US dollar, and fixed at an agreed-upon rate.
Exchange rates exert influence over the expenses of goods and services in foreign currency. This dynamic signifies that if the naira weakens in comparison to the US dollar, the costs of goods and services would rise when expressed in naira terms.
Nigeria floats the naira
On June 14, 2023, the Nigerian government announced the free float of the country’s currency, the naira, leading to a massive fall in value.
Analysts say the naira has lost almost 80 percent of its value against the US dollar between June and August.
The country’s financial regulator, the Central Bank of Nigeria (CBN), collapsed all the multiple exchange rate markets into the Investors and Exports (I&E) window.
The policy aims to unify the nation’s multiple exchange markets. Economic analysts say the move has proved counterproductive as the parallel market drifted farther away from the official window, creating an imbalance in the markets.
Naira bounces back against the dollar
However, in a twist of events, the Nigerian currency began to resurgence against the dollar after CBN promised to intervene. It gained about N95 in five days, leading to a massive loss to FX speculators.
It trades N739.52 to a dollar at the official market and N860 at the parallel market.
Here are the top cheapest currencies in the world:
Iranian Rial – IRR 1 INR = 516 IRR
The currency leads the pack of the cheapest currencies in the world.
According to reports, the currency’s fall was due to the Islamic revolution of 1979, followed by the withdrawal of foreign investors from the country.
The country’s nuclear programme war with Iraq played a prominent role in its financial distress.
Vietnamese Currency-VND- 1 INR = 284 VND
The Asian country followed a centralised economy and embarked on the part of forming a market economy.
The country’s currency is highly devalued.
Sierra Leonean Leone-SLL 1 INR = 278 SLL
The West African country’s currency is impacted by poverty and conflicts, which has led to its massive fall.
Also, the Ebola outbreak added to its troubles and constantly affected its population.
Lao or Laotian Kip -LAK 1 INR = 212 LAK
The currency is not devalued but has had a low rate since it was introduced in 1952, but its value has improved over the years, which could draw investors.
Indonesian Rupiah – IDR 1 INR = 179 IDR
The currency has not improved over the years and is mainly caused by decreasing foreign exchange reserves.
The country is reportedly heavily dependent on exports, with the fall of its commodities further devaluing its currency value.
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