Many people think that the US dollar is the strongest currency in the world.

The US dollar is the most traded in terms of margin, but not the strongest currency, according to a recent report by Legit.ng.

The Kuwaiti Dinar emerged as the strongest currency in a survey conducted by Forbes.

Indian currency is the weakest in the world

But according to reports, 2,000 Indian currency converted against the US dollar can turn holders into instant millionaires.

Foreign currencies are always traded in pairs. For example, when buying the Nigerian naira against the Ghanaian cedis.

As a result, currencies are always priced relatively to another currency, known as the exchange rate.

The Middle East houses some of the world's best currencies based on their performance against the dollar.

Most currencies are floating, like the Nigerian currency, meaning their value fluctuates depending on demand and supply.

Some currencies are pegged; that is, their value depends on the importance of another, primarily the US dollar, which is fixed on an agreed rate.

Exchange rates affect the cost of goods and services in a foreign currency. The development means that if the naira weakens against the US dollar, the prices of goods and services would cost more 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