Dollar Loses Title, Naira Ranks Low as Report Reveals List of World's Strongest Currencies in 2023
- The Naira ranks 96th on the list of the world's strongest currencies
- Oil-producing nations dominate the top of the rank
- The US currency is spotted at the 10th position on the list
The Nigerian Naira has been identified as the 96th on the list of strongest currencies in the world.
The ranking, carried out by Forbes Advisory, compared other currencies with the US dollar to determine the strongest out of 180-odd traditional fiat currencies worldwide.
Source: UGC
The US dollar is not the strongest
The report said despite being the most traded currency in the world, the US dollar is not the strongest.
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The report noted that Kuwaiti dinar (KWD) is the strongest currency in the world. The currency is adopted by Kuwait in the Persian Gulf between Saudi Arabia and Iraq.
Much of the country’s wealth is earned exporting oil.
This was followed by the Bahraini Dinar, adopted by Bahrain, an island nation in the Persian Gulf off the eastern coast of Saudi Arabia.
Like Kuwait, the country also earns much of its wealth from oil and gas exports.
Omani rial was ranked third on the list. The currency is used by Oman, sitting between the United Arab Emirates and Yemen at the eastern tip of the Arabian Peninsula. Oman is a major exporter of oil and gas.
Others
- Jordanian Dinar (JOD) by Jordan – 4th
- British Pound (GBP) by Britain - 5th
- Cayman Islands Dollar (KYD) by Cayman Islands – 6th
- Gibraltar Pound (GIP) by Gibraltar - 7th
- Swiss Franc (CHF) by Switzerland – 8th
- Euro (EUR) by European Union – 9th
- U.S. Dollar (USD) by US and its territories – 10th
Ahead of the North Korean won (KPW) and the Malawian kwacha (MKW), the Naira is ranked 96th, an FIJ report stated
Commenting on the performance of the naira, Charles Abuede, a financial analyst highlighted speculative activities, unabating demand pressure and the expectations for further devaluation of the local currency as factors that have seen the naira skid against the dollar in recent months.
He added that this is amid the recent FX rates harmonisation by the CBN with the introduction of the willing buyer, willing seller model.
He said,
"It was expected ab initio that the naira will strengthen against the greenback following the announcement by the CBN that it was about clearing all FX forwards contract backlogs; outcome was further devaluation and this has brought about the lack of confidence in the currency which also means that our import is now costly while export is cheap."
Legit. ng had reported that the naira ranked the Naira among the worst-performing African currencies according to the World Bank. The organisation also provided insights into Nigeria's economic challenges.
Naira Ranks High in List of 19 Worst-Performing Currencies in the World for 2022
Earlier, Legit.ng reported that the Naira ranked as the 11th worst-performing currency against the US dollar in the world and the fourth worst in Africa.
This was according to Hanke’s Currency Watchlist, computed by Steve Hanke and John Hopkins University.
According to the data, the Naira lost 48.87% of its value against the US dollar as of September 2, 2022, compared to its value in January 2020.
Source: Legit.ng
