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November 23, 2024 | 09:51 pm
TEMPO.CO, Jakarta - Despite its status as the strongest currency, the Kuwaiti Dinar is not considered an international currency. The U.S. dollar, however, is. CFR revealed that the U.S. dollar's dominance in global trade is attributable to several factors, including its stable value and the robust U.S. economy.
Some currencies trade at a lower exchange rate than the U.S. dollar. Their value is so low that one U.S. dollar can buy a large number of these currencies.
In this article, we'll discover the world's cheapest currencies, as highlighted in Forbes. From the Iranian rial to the Indonesian rupiah, here are the world's weakest currencies relative to the U.S. dollar.
1. Iranian Rial (IRR)
The Iranian rial is the weakest currency in the world. One rial equals 0.000024 dollars, while US$1 buys about 42,300 rials.
Economic sanctions, mainly imposed by the United States and the European Union (EU), have contributed significantly to the devaluation of the rial. In addition, political unrest and annual inflation are also responsible for weakening the currency.
2. Vietnamese Dong (VND)
The current low exchange rate of the Vietnamese Dong can be attributed to a number of factors, including a challenging real estate market, a slowdown in exports, and restrictions on foreign investment. US$1 buys approximately 23,400 dong.
3. Laotian Kip (LAK)
Much like its neighbor, Laos is seeing the value of its kip eroded by slow economic growth, inflation, and foreign debt obligations. 1 kip is equal to $0.000057, making it the third least valuable currency in the world.
4. Sierra Leonean Leone (SLL)
The leone is one of the cheapest currencies, with 1 leone buying only 0.000057 dollars. On the other hand, US$1 is worth about 17,665 leones.
The low value is the result of a myriad of economic challenges, namely high inflation and debt obligations. In addition, some believe that the Ebola outbreak and the recurring civil war in Sierra Leone are having a significant impact.
5. Lebanese Pound (LBP)
Lebanon continues to struggle with high unemployment, an ongoing banking crisis, and skyrocketing inflation, all of which have contributed to the decline of its currency. 1 Lebanese pound is only worth 0.000067 dollars.
6. Indonesian Rupiah (IDR)
Despite being the largest country in Southeast Asia, Indonesia is still far from being considered an economic giant. Even its currency is one of the weakest, with 1 rupiah buying only 0.000067 dollars.
The country is still struggling to strengthen the rupiah. However, a global economic contraction is a potential threat to the plummeting currency.
7. Uzbekistani Som (UZS)
Despite economic reforms in 2017, these efforts have not significantly overcome challenges such as high unemployment, inflation, and chronic poverty.
The Uzbek economy is further hampered by rampant corruption, which is driving the value of the som even lower. US$1 buys 11,420 Uzbek som.
8. Guinean Franc (GNF)
The Guinean franc is one of the cheapest currencies in the world. 1 franc is only 0.000116 against the U.S. dollar.
Some of the main factors contributing to Guinea's weak currency are the existing political instability and high inflation.
9. Paraguayan Guarani (PYG)
The Paraguayan Guarani is valued at about 0.000138 against the dollar. High inflation, money laundering, and drug smuggling contribute to the Guarani's weak position in the international market.
10. Ugandan Shilling (UGX)
The current situation in Uganda, with countless problems, including political unrest, an unstable economy, and hefty debt, doesn't seem to be able to strengthen the value of the shilling.
1 Ugandan shilling is worth 0.000267 dollars, while US$1 equals around 3,700 shillings, making it among the weakest currency in the world.
Forbes | Investopedia
Editor's Choice: Top 10 Highest-valued Currencies in the World, USD the Weakest on the List
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