I read in Jeune Afrique economie (February edition) that Zimbabwe authorities forgave the USD dollar and adopted the chinese Yuan as domestic currency.
This should be the proof that the worldwide currency market is not fair. In fact, on that market any currency is like an item to be bought or sold. So, if your currency is boosted by the exports of your country, your public treasury will receive a lot of non-national currencies. So, the more non national currencies you will have in your central bank, your currency will be more stronger compared to others... I tried to simplify, but, in the reality, it`s complex because you have to add gold stock,... Since my purpose is to help anybody to understand some complex economic concepts, I will not go through details here...
However, as you know, Zimbabwean economy is mainly based on traditional exportation's, And the prices of it`s products sold are not between it`s reach... Maybe, Zimbabwean authorities choose the yuan because now they mainly depend on chinese exports... that decision is very technical and strategic....
Now, I believe you can understand why the nigerian naira currency is low on the regional Foreign Exchange market (FOREX).
Hope this will help to understand that behind some strategic and important decisions, there are some technical fundamentals to be considered.
By the way, in my next posting, I will detail why the south african rand is going down since a couple of quarters and why the Kuwaiti dinar (in Persian Gulf) is the strongest non national currency around the world.