Currencies depict the state of a country’s economy. Even though the world is controlled by powerful currencies such as the US Dollar, Euro, and British Pound, many other currencies are weak because of economic problems. The cause of weak currencies often involves inflation, political instability, and financial mismanagement, making life difficult for the citizens.
1. Iranian Rial (IRR)
Iran’s Rial is the most devalued currency in the world. The reasons behind such a high degree of devaluation are the long years of international sanctions, political instability, and poor economic management. The long-term sanctions imposed on Iran’s oil exports have devastated its economy.
Exchange Rate: 1 USD = 42,000 IRR.
High inflation combined with the poor economic situation has further led to the devaluation of this currency.
The cost of everyday commodities is rising manyfold for Iranians.
Iran is still under massive economic stress and no end is short. This makes the Rial the cheapest currency worldwide.
2. Vietnamese Dong (VND)
Vietnamese Dong still appears in the list of least-valued currencies despite Vietnam’s good economic performance. Vietnam has been able to develop industrially and export more goods, but its currency has not caught up with it.
Exchange Rate: 1 USD ≈ 25,530 VND
Vietnam’s administration keeps the currency low for export purposes because cheaper currency values make it cheaper for them in world markets.
Although the Vietnamese economy has been growing steadily, Dong is still too weak to combat more robust international currencies.
Exports run the Vietnamese economy, and people still cannot buy imported products that are still relatively very costly because of the flaccid Dong.
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3. Laotian Kip
Laotian Kip has been struggling for years and is among the weakest in 2024. Agriculture and small industries have a stronghold over Laos’s economy.
Exchange Rate: 1 USD ≈ 21,575 LAK
Laos imports most of their goods and a weak currency means imports are expensive to locals.
Little industrialization and low economic growth prevent Kip from appreciating.
Inflation and increasing levels of debt also weigh Laos’ economy down, preventing Kip from appreciating.
4. Sierra Leonean Leone (SLL)
Poverty, inflation, and a feeble economy in Sierra Leone have meant that the Leone has only continued to drop. The country is in and out of political and economic mismanagement.
Exchange Rate: 1 USD ≈ 22,683 SLL
Sierra Leone’s inflation has to be high, thereby worsening the devaluation process.
The country is not infrastructural adequately and is dependent on foreign aid for economic development.
Due to this relatively weak currency, most of its citizens are unable to afford their daily household needs.
5. Uzbekistani Som (UZS)
One of the weakest currencies in Central Asia is Uzbekistan Som. As there is slow growth and less foreign investment in its economy, the pressure falls on Uzbekistan.
Exchange Rate: 1 USD ≈ 12,000 UZS
Reforms were carried out by the government to make its economy stronger, but Som, as it stands now, is weak.
Resources are agriculture and raw materials only which are not yielding to any extent for generating more revenues in order to have the currencies stronger.
The current Government’s changes may increase the Som in the future, but the process is very slow.
6. Guinean Franc (GNF)
The Guinean Franc is highly susceptible to economic instability, poverty, and inflation in Guinea. It is a country that has many problems in the economic sphere due to its richness of gold and bauxite.
Exchange Rate: 1 USD ≈ 8,613 GNF
The economic activities of a state get hampered due to poverty and the absence of proper industries.
Inflation further drops the currency value to reduce people’s purchasing power.
The Guinean Franc is still under strain with no significant economic activities on the go.
7. Paraguayan Guarani (PYG)
Paraguayan Guarani is one of the weakest currencies in South America. Paraguay’s economy is based mainly on agriculture. However, the country is experiencing some sort of inflation and not a significantly diversified economy.
Exchange Rate: 1 USD ≈ 7,910.91 PYG
Industrial growth is still low and mainly export-based, hence the currency is undervalued.
The country is still facing inflation; hence, the economy is in unstable condition.
Diversification in Paraguay’s economy can have a positive impact on currency value in the future. However, challenges are still on.
8. Cambodian Riel (KHR)
Cambodian Riel is one of the currencies with the lowest value in Southeast Asia. The main sources of the country’s economy are tourism, agriculture, and textiles.
Exchange Rate: 1 USD ≈ 4,100 KHR
The economy of Cambodia is still poor due to undeveloped infrastructures and reliance on international aid.
The Riel shares use with the US Dollar, which is common for most transactions in the country.
The dependency on the US Dollar prevents the Riel from strengthening and keeps it devalued in international markets.
9. Ugandan Shilling (UGX)
The factors that weaken the Ugandan Shilling economy are based on Uganda’s agricultural-based economy as well as its sensitivity to inflationary factors that affect the currency.
Exchange Rate: 1 USD ≈ 3,672 UGX
Uganda is facing economic instability, political factors, and underdeveloped industries.
Inflation is a factor that decreases the strength of the Shilling because it reduces the purchasing power of the citizens.
This may eventually lead to the appreciation of the Shilling in the long run since the government is stabilizing the economy and attracting foreign investments.
10. Indonesian Rupiah (IDR)
The Indonesian Rupiah is the poorest currency in Southeast Asia and one of the worst in the world. It is even over-undervalued for an emerging economy like Indonesia.
Exchange Rate: 1 USD ≈ 16,575 IDR
The government keeps its currency low to encourage exportation and enhance tourism.
Great dependency on foreign debt and inflation are other stress factors for the Rupiah of Indonesia.
Economic growth in Indonesia gives some hope, but Rupiah remains sick in the international market.
Conclusion
While some try to stabilize their economies, others deliberately keep the currencies very weak so that the exportation of products becomes quite easy. Noble or nefarious may be the reasons, the practical consequences are that currencies affect life. Hence, for the good of national currencies, it is important to go for economic reform.
Realizing all these currencies raises the idea of economic stability and robust financial strength for the globe.
