The weakest currencies in the world have some surprises listed among them.
A robust currency is primarily linked to a steady economy, along with low inflation and interest rates.
However, a weak currency is largely associated with economic instability, coupled with high inflation and interest rates.
The depreciation of these currencies can result in multiple adverse consequences for the nations employing them.
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This situation can hinder their ability to import goods and services, potentially leading to shortages and elevated prices.
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Additionally, it can pose challenges for attracting foreign investments, thereby potentially impeding economic growth.
The following is a list of the top 10 weakest world currencies, provided in no particular order at the time of compiling this report:
Iranian Rial (IRR)
The Iranian Rial is officially the world’s weakest currency, largely attributed to political tensions with the United States and the Iran-Iraq war.
The Iranian Revolution of 1979 caused a significant drop in the Rial’s value due to substantial capital flight during that period.
An estimated $30-40 billion left the country during the revolution.
In 2022, the Rial’s value dropped by 29% following the death of Masha Amini, a 22-year-old Iranian woman, causing international outrage.
As of now, 1 pound is equivalent to 53,817 rials, 1 USD to 42,250 rials, and 1 Naira to 53.76 rials.
Vietnamese Dong (VND)
The Vietnamese Dong is the second weakest currency globally.
Vietnam’s reunification in 1976 led to the unification of the dong in 1978.
However, miscalculations resulted in inflation reaching 774% in 1986.
Though the dong has since stabilized, the impact of the economic shocks is still evident.
Presently, 1 pound equals 30,483.78 dong, 1 USD equals 23,945 dong, and 1 Naira equals 30.47 dong.
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Indonesian Rupiah (IDR)
The Indonesian Rupiah is the official currency of Indonesia.
The name is derived from the Sanskrit word for silver, ‘rupyaka.’
Despite efforts to maintain its value, the rupiah has experienced high inflation throughout its history.
The currency was hit hard by the Asian financial crisis of 1997, the 2007-2008 Great Recession, and the Covid-19 pandemic.
At present, 1 pound equals 19,479.47 ru, 1 USD equals -15,311.30, and 1 Naira equals 19.94 rupiah.
Laotian Kip (LAK)
Laos, one of Southeast Asia’s poorest nations, has used the Kip as its currency since 1955.
It replaced the French Indochinese piastre.
Currently, 1 pound is equivalent to 24,552.65 kip, 1 dollar equals 19,260 kip, and 1 Naira equals 25.08 kip.
Sierra Leonean Leone (SLL)
Introduced in 1964, the Sierra Leonean Leone was once stronger than the US dollar in the 1980s but suffered severe depreciation due to inflation during the civil war.
Despite efforts to stabilize the currency, inflation remains high at 37.8%.
As of now, 1 pound is equivalent to 25,153.30 SLL, 1 dollar equals 17,750 SLL, and 1 Naira equals 25.86 SLL.
Paraguayan Guarani (PYG)
The Guarani, created in 1943, is Paraguay’s national currency, divided into 100 céntimos, which are no longer in use due to inflation.
Plans to revalue the currency in 2011 were suspended.
At present, 1 pound equals 9,260, 1 USD equals 7,266.78, and 1 Naira equals 9.46.
Uzbekistan Sum (UZS)
The Sum, Uzbek for ‘pure,’ is Uzbekistan’s official currency, with the country having the “world’s most worthless coin.”
Despite being weak, Uzbekistan has implemented economic reforms to support its economy.
Currently, 1 pound equals 15,392.30 sum, 1 USD equals 12,075 sum, and 1 Naira equals 15.72 sum.
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Burundian Franc (BIF)
The Burundian franc became the country’s currency in 1916, with its own francs issued in 1964 after using the Belgian Congo currency.
Despite strong food production, the franc remains weak, and the country relies heavily on humanitarian aid.
At present, 1 pound is 3,610.66 Franc, 1 USD is 2,833 Franc, and 1 Naira is 3.69 franc.
Congolese Franc (CDF)
The Congolese franc serves as the currency for the Democratic Republic of Congo, with its value plummeting due to the country’s economic decline since the 1980s.
Conflicts and economic stagnation have further hindered its development.
As of now, 1 pound is equivalent to 3,146.72, 1 USD equals 2,468.50, and 1 Naira equals 3.21 Franc.
Venezuelan Bolivar (VEF)
The Bolívares, named after Simón Bolívar, was stable until the adoption of a floating exchange rate in 1964, leading to rapid depreciation.
Hyperinflation struck in 2012, reaching 65,374% in 2018, though it reduced to around 400% in 2023 amid ongoing hyperinflation.
Presently, 1 pound equals 4,026,235.39 bolívares, 1 USD equals 3,164,299.91 bolívares, and 1 naira equals 4,120.69 bolívares.
Please note that these currency equivalents are accurate as of the time this report was filed and may change over time.
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