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TEMPO.CO, Jakarta - When it comes to currency, the focus often revolves around its strength—the higher the value, the more buying power it holds. However, there are notable exceptions, with some named as the weakest currency in the world.
These currencies are known for their low exchange rates and significant depreciation, which can be indicative of various economic challenges.
List of the Weakest Currencies in the World
Bank Bazaar and Forbes both named the Iranian Rial as the weakest currency in the world. Keep reading to discover nine other currencies that share this reputation when compared to the USD.
1. Iranian Rial (IRR)
Taking the top spot, the Iranian Rial is the weakest currency in the world. 1 real exchange for approximately US$0,000024, a notably low value driven by several factors. The country’s nuclear program, the Iran-Iraq War, and ongoing political instability have all contributed to the significant devaluation of the IRR.
2. Vietnamese Dong (VND)
Vietnamese Dong has struggled through years of inflation and historical economic instability. While the country is expected to see significant improvements, the dong remains weak, with 1 dong buys only US$0,000039.
3. Sierra Leonean Leone (SLL)
The Sierra Leonean Leone is a prime example of a currency weakened by poverty. It has also been significantly impacted by factors such as civil war in West Africa and the Ebola outbreak. Currently, 1 leone is worth just US$0,000046.
4. Laotian Kip (LAK)
Another weakest currency in the world, the Kip hasn't experienced significant devaluation but has remained low since its establishment in 1952. Contributing factors to its prolonged low value include inflation, a sluggish economy, and rising foreign debt.
Despite some improvements, the Kip's value remains weak, with 1 kip equal to just US$0,000046.
5. Indonesian Rupiah (IDR)
The Indonesian Rupiah has experienced significant fluctuations in value over the seven years, according to Bank Bazaar. While Indonesia has one of the largest economies in Southeast Asia, its currency remains vulnerable due to declining foreign exchange reserves. Currently, 1 rupiah is worth only US$0,000060.
6. Uzbekistan Som (UZS)
Although the government of Uzbekistan has tried various measures to improve the economy, none have proven successful, with the latest being reformatory changes that have yet to show their impact on the currency value. Factors like high inflation, high unemployment, and issues with corruption contributed to the som’s low value. 1 som is only 0,000078 against the USD.
7. Guinean Franc (GNF)
Guinea is rich in natural resources, particularly bauxite, yet its Franc has suffered from inflation and low foreign investment since the conflicts of the 1990s—leading to its devaluation, with 1 franc worth only US$0,000012. Over the years, the currency has devalued also due to political instability, corruption issues, and military unrest.
8. Paraguayan Guarani (PYG)
The Paraguayan Guarani is another weakest currency in the world that has struggled with economic downturn. The country faces persistent challenges, such as high inflation, unemployment, corruption, and increasing poverty—all keeps 1 guarani as low as US$0,000013.
9. Cambodian Riel (KHR)
The Cambodian Riel’s low value is driven by its high dollarisation. As a developing nation, it faces many obstacles to growing its currency’s strength, with issues dating back to the late 80s and early 90s when the widespread use of the USD took hold. With a dual-currency system in place, 1 riel is worth only US$0,000025.
10. Ugandan Shilling (USH)
The low value of the Ugandan Shilling can be traced back mainly to the country's struggles under Idi Amin's governance. The president's policies, including those on immigration, had a negative impact on the economy, contributing to the shilling's devaluation. As a result, 1 shilling is worth only US$0,000027.
From political instability to inflationary pressures and historical legacies, these currencies showcase a glimpse to the complexities of global economies. If you’re eager to broaden the exploration, be sure to discover the oldest currencies in the world.
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