The Naira has seen better days. Nevertheless, despite the download trend on the Naira value in the past few years, the Nigerian currencies is still a lot more valuable than many foreign currencies. In this article, we look at just the 10 currencies the Naira is better than.
So, you want to know which currency is Naira better than? Check them below:
1. Venezuelan Sovereign Bolvar
Venezuelan Sovereign Bolvar is the world’s cheapest currency so the Naira is stronger than it by a mile. COVID19 caused severe inflation, and its value fell to an all-time low in 2020. Since then, things have only gotten worse.
In March 2021, the Central Bank of Venezuela launched three new banknotes in denominations of 200, 500, and 1 million bolvars in an attempt to stabilize the country’s economy. On the 20th of August, 2018, the bolivar was redenominated. The main cause was hyperinflation, which peaked at over 830,000 percent and continued to rise day by day.
2. Iranian Rial
The Iranian Rial is the world’s second-cheapest currency. You’re a millionaire in Iran with thousands of NairaIts depreciation began in 1979, following the Islamic Revolution, when many firms fled the nation due to the unpredictability of the situation.
Then there was the Iran-Iraq War, followed by economic restrictions imposed as a result of Iran’s nuclear program. The Iranian government also restricted citizens’ access to foreign currency, resulting in a huge increase in the black market. All of this harmed the economy and depreciated the currency by about 400%.
In 2015, the Iranian government decided to sign a nuclear agreement with the United States, France, the United Kingdom, China, Russia, and Germany in order to reduce sanctions. It helped to improve the situation and keep the local currency stable. However, the United States asserted in 2018 that Iran is moving forward with its nuclear program.
Sanctions have been tightened, limiting the country’s access to global commodity markets. Iran was no longer able to export its petroleum, which accounted for roughly 69 percent of its annual revenue. It incurred a significant national budget deficit. Other industries, such as petrochemistry and metallurgy, were also subject to sanctions.
3. Dong
The Vietnamese Dong is the world’s third most undervalued currency. Vietnam is currently struggling to transition from a centralized to a market economy, and as a result, the country’s currency has depreciated significantly.
The Dong is now ranked third among the world’s poorest currencies. Experts, on the other hand, believe that the Vietnamese government is on the right track and that the country would soon catch up to its Asian neighbors.
4. Indonesian Rupiah
Indonesia is a Southeast Asian country that is economically stable and well-developed. Its currency, on the other hand, has an extremely low exchange rate. The country’s regulatory authorities have tried everything they can to bolster the national currency, but their efforts have had only little results.
Due to the low value of old-style banknotes, the president issued a presidential decree on September 5, 2016, issuing seven new banknotes in values ranging from one thousand to one hundred thousand rupiahs.
5. Uzbek Sum
The current Sum entered circulation on July 1, 1994, with a ratio of 1 Sum to 1000 Sum-coupons, as decreed by the President of Uzbekistan. As a result of their monetary policy liberalization, the Sum’s exchange rate against the US dollar was established at 1 USD = 8,100 UZS on September 5, 2017, with a projected range of 8,000-8,150 UZS for 1 US dollar. That’s way poor compared to the Naira as $1 is less than N600 and has been for previous years.
6. Sierra Leonean Leone
Sierra Leone is an impoverished African country that has undergone numerous critical tests, causing the local currency to depreciate. There has just been a battle there, and the deadly Ebola virus has resurfaced.
The Bank of Sierra Leone decided to redenominate the Sierra Leonean Leone in August 2021. Old banknotes will be replaced with new ones known as the New Leone, with 1 New Leone equaling 1,000 old SLL.
7. Guinean Franc
A high inflation rate, progressing poverty, and thriving criminals devalued the currency of Guinea – the African country with one of the most inflated currencies. This country’s currency should be one of the most valuable, given its natural resources such as gold, diamonds, and aluminum.
8. Lao or Laotian Kip
The Lao is the only currency on this list, which did not devalue but was originally introduced with an extremely low rate. Besides, since its creation in 1952, the currency did strengthen against the US Dollar and continues to improve its value.
9. Paraguay Guarani
Paraguay is the poorest country in South America. It experienced a devastating economic downturn, which included inflation, corruption, bad education, a large number of poor people, significant unemployment, and so on. Paraguay exports cotton and soybeans, but these commodities are insufficient to meet the country’s economic demands.
10. Cambodian Riel
At number 10, we have the Cambodian Riel; the world’s tenth-weakest currency. The Cambodian Riel is the currency of this Southeast Asian monarchy. The Indochinese Piaster was replaced by this monetary unit in 1995.
The Riel had a low exchange rate at first, and it was unpopular among locals who preferred to use international currencies. Many Cambodians now choose to pay in US dollars, causing the native currency to depreciate even further.