List of Currencies Stronger Than US Dollar as Tinubu Eyes N200/$ Exchange Rate
- Naira, in recent months, has depreciated heavily against the US dollar in all foreign exchange markets
- While the Naira is struggling, there are other currencies, like the British pound, which has a stronger value than the US dollar
- Bola Tinubu, who is expected to succeed Muhammadu Buhari as president, has reportedly promised to improve the Naira exchange rate to N200 per dollar
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The United States dollar is generally seen as the most powerful currency in the world because it’s the most-traded currency on the global stage by a wide margin.
Its dominance dates back to the Bretton Woods conference held in 1944 when 44 Allied nations agreed on establishing a new international monetary system during World War II.
Today, most financial transactions, international debt, and global trade invoices are denominated in dollars.
Source: UGC
In fact, close to 60% of global foreign exchange reserves are held in dollars as of 2021, including Nigeria.
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Nevertheless, some countries' currencies have a relatively more substantial value than the US dollar.
The countries whose current exchange rates are more potent than that of the US dollar are:
- Cayman Islands Dollar: 1 KYD = 1.20 USD
- British Pound: 1 GBP = 1.24 USD
- Jordanian Dinar: 1 JOD = 1.41 USD
- Omani Rial: 1 OMR = 2.60 USD
- Bahraini Dinar: 1 BHD = 2.65 USD
- Kuwaiti Dinar: 1 KWD = 3.26 USD
- Swiss franc- 1Swiss franc= 1.12USD
- 1 Gibraltar Pound= 1.24
- 1 Euro= 1.10USD
Tinubu plans to restore Naira's lost value
Meanwhile, the incoming president, Bola Ahmed Tinubu, promised to help stabilise the value of the Naira against the US dollar.
In his manifesto titled Renewed Hope, Tinubu said:
Our economic policies shall be guided by our desire for a stronger, more stable Naira founded upon a vibrant and productive real economy.
Prime Business also reports that the President-elect has vowed to work with the Central Bank of Nigeria (CBN) to reduce the dollar's exchange rate to around N200.
The report quoted him as saying:
“My administration will collaborate with the Central Bank to harmonise the fiscal and monetary policy to achieve immediate stabilisation of the value of the naira against the US dollars and other currencies and, in the short term, strengthen the naira by boosting the supply of foreign currency and moderating demand.
“The short-term goal is to achieve a naira/dollar rate of 300 naira/US$ and gradually achieve a less than 200 naira rate over the next four years,” Tinubu stated.
Naira falls as experts predict N1,000 to one dollar exchange rate
Meanwhile, in another report, Legit.ng disclosed that experts had predicted the value of the exchange rate in 2023.
The experts believed that the Nigerian currency would be unable to withstand the pressure of foreign currency due to low liquidity.
If the predictions from renowned economists are correct, it will continue the trend of the Naira movement experienced in 2022.
Source: Legit.ng
