To solve the country’s economic woes as well as to secure a loan from the IMF, the Egyptians took the bold move. While it may not be one of the weakest currencies in the world, it has certainly experienced the most depreciation. UK-based businesses are looking to skirt from the country, shifting their focus into mainland Europe, while the currency plunged to its 30-year low in retaliation as well. The Sterling Pound experienced a 17% decline against the US dollar. Russia’s economy is currently experiencing a recession and hurting from the sanctions against it.
Due to this procedure, some of the currencies have left the above list. However, due to inflation, centavos are now out of circulation.
Venezuela is a country in free-fall; that is literally a quote from CNN. Struggling with food shortages, incessant power failure and a dictatorial government, the full extent of the country’s problems remains shrouded in mystery. Prime Minister Theresa May seems bewildered trying to solve the country’s problems as well. While the pound’s depreciation against the dollar and euro seems to have slowed, it is now the cheapest time to buy pounds in many of our lifetimes. Belarus is the third most oil-dependent economy in the world after Libya and Singapore. The unsteady political situation in the country where the incumbent President is on his fifth-term in office, the Ruble is not showing any signs of a comeback anytime soon.
The 5, 10, 20 and 50 peso coins are still legal tender, but due to their low value and circulation, most cash transactions are rounded up. 3International payment services are provided by licensed Money Services Businesses in their respective geographies. In this article, we discuss how to set up a Nevis offshore trust, how these structures operate,… In this case, being one of the weakest currencies in the world is a clear indication of deeper issues within the country. Investors are expecting lower declines against the dollar this year. Malaysia is still one of the most “liquid emerging markets” in the world and the Government is making amends to its short-sighted folly surrounding the limit on ringgit forwards.
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This monetary unit was issued in 1995 to replace the Indochinese Piaster. Originally, the Riel had a low exchange rate and was not popular among locals who had decided to use foreign currencies. Leone is the official currency of Sierra Leone which is among the top 10 weakest currencies in the world in 2023. It is subdivided into 100 cents, but due to the low value of the currency, denominations in cents are no longer in use. The ISO 4217 code is ssl and it is abbreviated as leon because the li is placed before the amount. As of 23 October 2018, 20,000 león is equivalent to approximately 2.09 EUR.
Dong is the official currency of Vietnam since 3 May 1978. The dong was also the currency of the former states of North Vietnam and South Vietnam, replacing the previously used French Indochinese piastre. On January 21, 2018, the Central Bank of the Republic of Guinea issued a revised banknote of 20,000 francs with reduced size and enhanced security features. On March 1, 2019, the 59th anniversary of the introduction of its national currency, the Central Bank of the Republic of Guinea issued a revised banknote for 10,000 francs and a new banknote for 2,000 francs. Popular belief suggests that the name of the currency comes from Reel, a fish from the Mekong River.
However, the value of the currency is increasing, yet there is still a lot of ground to over to find its way out of the list of the lowest currencies in the world. Occupying the first spot on our list of lowest currencies in the world is the Iranian Rial, the official currency of Iran. The currency is greatly devalued as a result of economic sanctions by the world governing body due to conflict with other nations like Iraq, threats against Israel as well as nuclear missile possession. So, no wonder that this currency is considered the most inflated in the world.
It experienced a decline of more than 30 percent in 2015 alone and it subsequently underperformed in 2016 as well. The sanction led to the restrain of Iran from trading with other countries which have drastically affected the country’s economy. We aim to provide you with much information about the lowest and weakest currencies in the world just as much as you are very informed about the strongest currencies in the world. The value of a currency depicts the economic stability of a country.
All of this damaged economics and devalued the currency almost by 400%. Each nation’s currency represents a unique cultural and financial pride and stands as a symbol of national prosperity. Still, some currencies and economies are adversely affected by wars, poverty, and political instability, meaning that there are some countries whose money is of low value. Based on a variety of factors, these are ten of the world’s least-valued currencies in 2022.
Indonesia is an economically stable and quite developed country in Southeast Asia. The country’s regulatory authorities are taking all measures to strengthen the national currency, but all their efforts led only to insignificant changes. Image credit Michael Zysman via Shutterstock In circulation since 1952, the Laos Kip’s value has fluctuated over time, but as of 2022, it remains in the top ten cheapest currencies. Currently, one US dollar equals about 17,335 Kips making it one of Southeast Asia’s weakest monetary units. The government hopes to increase the demand and trading value of the Kip through measures such as stimulus spending.
The 9th weakest currency in the world in 2023 is the Colombian peso , which is the official currency of Colombia. It is also being used to differentiate it from other peso- and dollar-denominated currencies. The Cambodian Riel is the 10th lowest priced currency in the world by 2023.
#2: Vietnamese Dong (VND): [1 USD = 22,650 VND]
A compatibility character defined in the Unicode Standard is U+FDFC ﷼ RIAL SIGN. Currently, the smallest denomination in circulation is the 500 franc note due to low purchasing power. As of 01 January 2023, 1 euro is equal to 9,335 Guinean francs, meaning that the highest denomination banknote of 20,000 francs is worth less than 3 euros.
- The dong was also the currency of the former states of North Vietnam and South Vietnam, replacing the previously used French Indochinese piastre.
- Then came the Iran-Iraq War, and the economic sanctions because of the country’s nuclear program.
- This brings us to the rudiment of our discussion in this article which is the lowest currencies in the world which is also believed to be the weakest.
- Making our list is another African country and that is Guinea Franc, the official currency of Guinea.
- BookMyForex has compared the list of World’s 10 least valuable currencies in 2022.
When inflation is high, foreign investors would be hesitant to invest in the currency. The value of a country’s currency is determined by the exchange rate. In reality, it varies on a regular basis depending on market conditions. The foreign exchange rate is an important factor in determining a country’s economic health.
It provides insight into the country’s economic prospects. Another way to look at a country’s currency rate is to use it as a measure of its economy. A currency’s quarter-on-quarter performance can also reveal the country’s current state of affairs. A sharp decline in performance will spell bad omens for a country and an increment will mean good tidings. Laotian national currency, the Lao Kip is also one of the weakest currencies in the world list. The currency should have not been mentioned on this list but for the fact that it was originally issued with a very low rate since its issue in 1952.
These are the major challenges leading to the depreciation and weakening of Uzbek Sum. A high inflation rate, progressing poverty, and prospering gangsters devalued the currency of Guinea – the African country with one of the most inflated currencies. Due to the low value of old-style banknotes, by presidential decree of September 5, 2016, 7 new banknotes were issued in denominations from 1 thousand to 100 thousand rupiahs. The exchange rates of the least valued currencies were updated on14 July 2022. The Riau Islands and the Indonesian half of New Guinea had their own versions of the rupiah in the past.
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Image credit Prachaya Roekdeethaweesab via Shutterstock Sharing a border with Sierra Leone, Guinea also has a cheap currency that has struggled with hyperinflation for decades. In conjunction with widespread poverty, political instability, and a low annual GDP of 19 billion US, the Guinean Franc is amongst the worst monetary units in the world. Today 8,600 Guineas would equal one American dollar, in spite of the nation’s rich mineral and resource wealth.
When there is no stable government, economic performance will suffer. International investors will flock to a stable government. Not only will the investment boost foreign capital, but it will also raise the value of the domestic currency. International investors are more likely to trust a nation weakest currency in the world with a stable political system and sound financial policy. The currency has shown no improvement in the last 7 years. A number of factors are attributed to its devaluation, which includes its decreasing foreign-exchange reserves due to the central bank’s failure in protecting the currency.
#3. Vietnamese Dong
The Guinean Franc ranks 7th among the top 10 weakest currencies in the world in 2023. It is subdivided into one hundred centimes, but no centime denomination was ever issued. The last member of our list of lowest currencies in the world still goes to the Ugandan shilling, which has only improved slightly in value over the last two years. Apart from that minimal increase, the Ugandan shilling remains very stable, which means its value may continue to slowly rise over the next several years.
Sierra Leonean money a business background from new series of banknotes. Image credit Janusz Pienkowski via Shutterstock Though rich in natural resources, the West African nation of Sierra Leone has long struggled with poverty and economic malaise. Between civil wars and the effects of an Ebola virus outbreak, the country’s currency has been devaluing for some time. With an annual GDP of 4 billion US, Sierra Leone has the lowest GDP on this list. Today, Leone trades very poorly when compared to the US dollar, and it is one of two African currencies in the top ten worst currencies. Sierra Leone is a new currency, issued in 2022 at a rate of 1,000 SLL to 1 SLE in an attempt to curb the decreasing valuation.
Due to factors such as political and social instability, economic mismanagement, national poverty, and wars, many nations around the world have currencies that are very poor in material value. Compared to such prominent monetary units as the US dollar and the Euro, this list of the ten worst currencies reflects an array of economic woes faced by the respective nations. Across different parts of the globe, these local economies continue to struggle to bring investment and trading worth for their cultural currencies. The Paraguayan Guarani is the official currency of Paraguay comes in at the 9th spot on our list of lowest and weakest currencies in the World. The importance of political stability cannot be overstated. The forex market is influenced by a country’s economic results.
It suffered a disastrous economic downturn, combining inflation, corruption, low education quality, an enormous number of poor people, high unemployment, etc. In August 2021 the Bank of Sierra Leone has made a decision to redenominate the Sierra Leonean Leone. Old banknotes will be replaced with new ones called the New Leone with the rate of 1 New Leone to 1,000 old SLL. Sierra Leone is a very poor African country, which handled out many serious tests that caused the local money to devalue. Recently, a war took place there, and the deadly Ebola virus is recurrent. The Iranian rial is currently the weakest circulating currency in the world in 2023, with one United States dollar equal to 42,024 Iranian rials.
The impact of the economic weakening that occurred under the president is still creating obstacles in the country’s development. However, the last few years has seen improvement in the currency’s value, with no more than 5 percent of devaluation. Its devaluation started in 1979 after the Islamic Revolution when many businesses left the country because of the uncertain situation. Then came the Iran-Iraq War, and the economic sanctions because of the country’s nuclear program. The Iranian government also restricted access to foreign currency for their citizens, which led to the significant black market lift.