By May 2020, Iran was experiencing rapid inflation, and its currency had lost 600% of its value. To address this, the government chose to replace the Rial with the Toman, removing four zeros from its value. “Lebanon is at a dangerous crossroads, and without rapid reforms will be mired in a never-ending crisis,” the International Monetary Fund noted when the Lebanese pound hit its record low earlier this year. Furthermore, the decline in commodity prices has further contributed to the decrease in the currency’s value. The presence of foreign investors holding a significant portion of Rupiah sovereign bonds also poses a risk to capital flow. “Political instability and a slowing global growth outlook will keep Guinea’s economic activity below potential (albeit still strong by regional standards) in 2023,” says the Economist Intelligence Unit.
Political Instability
A fiat currency, liked the Aussie dollar, is money that isn’t tied to the worth of a physical commodity like gold or silver. Still, the som remains a weak currency, held back by slowing economic growth, steep inflation, high unemployment, extensive corruption and chronic poverty. We’ve identified the 10 weakest currencies in the world, based on their relative value against the U.S. dollar. #When it comes to affordable exchange rates and fees, it’s worth noting that the cost will vary depending on how you choose to fund your transactions.
It is important to check any product information directly with the provider. Contact the product issuer directly for a copy of the PDS, TMD and other documentation. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are weakest currency in the world to inr the author’s alone and have not been provided, approved or otherwise endorsed by our partners. Since 2017, the Central Asian nation of Uzbekistan, a former republic of the Soviet Union, has been rolling out economic reforms. Still, the som remains a weak currency held back by slowing economic growth, steep inflation, high unemployment, extensive corruption and chronic poverty.
Top 10 cheapest currencies in the world in 2024
Next on our list of weakest currencies in the world is the Indonesian Rupiah (IDR). The currency began circulating in the country in 1946, along with other currencies. However, with the independence from the Dutch in 1950, the Indonesian Rupiah became the sole official currency. The country faced high inflation at various stages, leading to economic challenges and currency devaluation. 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.
Interest Rate
Denomination means a change in the nominal value of banknotes, usually after hyperinflation, to stabilize the currency and simplify calculations. It suffered a disastrous economic downturn, combining inflation, corruption, low education quality, an enormous number of poor people, high unemployment, etc. In 2015, Iran’s government reached an agreement on nuclear issues with several countries, including the U.S., France, UK, China, Russia, and Germany. As a result, the situation improved, leading to the stabilization of Iran’s local currency. To the extent any recommendations or statements of opinion or fact made in a story may constitute financial advice, they constitute general information and not personal financial advice in any form. As such, any recommendations or statements do not take into account the financial circumstances, investment objectives, tax implications, or any specific requirements of readers.
However, the metical underwent severe inflation, which resulted in 2005 the metical being the weakest currency in the world at around 24,500 meticals to the dollar. A weak economy will often dictate a weak currency, but often a weak currency is due to the fact that the currency in question is not in demand. Conflict, isolation and high inflation are often what contribute to a currency’s rapid depreciation.
- However, in 2018 the U.S. claimed that Iran proceeds its nuclear program.
- The rapidly changing economic situations in these countries present a challenge.
- Here are today’s 10 weakest international currencies, based on the amount of U.S. dollars that will buy one unit of each currency.
- For example, if one exchanges 500 INR in India, they may get only around USD 6 in return.
After the end of the Amin period in Uganda’s history, the country entered a programme of economic recovery, yet plunged back into trouble in 1984. Despite the country stabilising since then, inflation and currency depreciation has continued. Iraq still relies heavily on oil exports, which due to these being solely in dollars (known as petrodollars), there is little demand for dinars. Entering circulation in 1932, replacing the Indian rupee, the Iraqi dinar was pegged to the British pound until 1959, when this switched to the US dollar.
The Brazilian real has been the central currency since 1994, which it finally settled on after changing currency eight times since 1942. In 1993, the inflation rate hit almost 2,500%, and the real was introduced to stabilise the economy. According to the UN, there are 180 currencies in circulation in the world. Certain currencies are more valuable than others – some significantly more so.
Consider renowned national currencies like the British Pound Sterling, the Swiss Franc, and the US Dollar—these hold a reputation for stability alongside the countries that back them. Yet, when attempting to compile a list of the least valuable currencies in the world, we run into trouble. The rapidly changing economic situations in these countries present a challenge.
Originally, the Riel had a low exchange rate and was not popular among locals who had decided to use foreign currencies. A high inflation rate, progressing poverty, and prospering gangsters devalued the currency of Guinea – the African country with one of the most inflated currencies. The Sierra Leonean leone is the fourth-weakest currency in the world, with 1 leone buying 0, dollar (1 USD equals 17,665 Sierra Leone leones). In comparing various financial products and services, we are unable to compare every provider in the market so our rankings do not constitute a comprehensive review of a particular sector.
Due to offshore financial services and tourism, the per capita income of Bermuda is extremely high, and is currently fourth in the world. The Bermudian dollar is tied to the US dollar, which circulates in Bermuda equally to BMD. After separating from Malaysia in 1967 and forming the Board of Commissioners of Currency, the Singapore dollar was introduced due to the breakdown of monetary union between Singapore, Brunei and Malaysia. Find out what the top 20 strongest currencies are in the world in 2023.
Iraqi Dinar (IQD)
Their foreign revenue is also dependent on remittances from abroad and exports of aluminium and cotton. As the country is susceptible to external shocks, as well as guilty of several human rights violations, this makes the somoni undesirable as a currency. The strongest currencies are often highly sought after, such as the most valuable currency of the Kuwaiti dinar, or rooted in strong, influential economies, such as the US dollar. Government debt or public debt is government-owned debt and a public liability. If one country faces debt, the chances of having more money are slight, with the potential of causing inflation. Foreign investors would be in two minds about investing considering the high inflation, which would depreciate the currency’s value.
A single dam produces an overwhelming majority of the electricity used by Paraguay, but the country’s leadership in hydroelectric power hasn’t led to economic power. High inflation—approaching 10% in 2022—as well as drug smuggling and money laundering have diluted the currency and broader economy of Paraguay, a landlocked country in South America. Despite an abundance of natural resources like gold and diamonds, Guinea—a nation in sub-Saharan Africa and a former French colony—has been plagued by high inflation that’s depressing the Guinean franc. Unrest against the country’s military rulers and a refugee influx from neighboring Liberia and Sierra Leone are contributing to Guinea’s deflated economy and currency.
Food production is strong in the country, but civil unrest and overpopulation have contributed in recent years to a contraction of the subsistence economy by 25%. Stagnation in economic development due to corruption is a problem in the DRC, which severely inhibits foreign investment and interest in the currency. After the civil war which caused the breakdown in the central authority, the value of the Somali shilling plunged, and The Central Bank of Somalia completely shut down. However, in the late 2000s, a recovery was in sight, and alongside the return of many expatriates, Somalia saw an influx of investment. By 2014, the Somali shilling had appreciated by almost 60% against the dollar in just one year and has shown new strengths in recent years. The current economic situation is fragile, as the country is plagued by corruption and economic mismanagement.
Introduced in 1970, it was named the Saidi Rial after the sultanate of Oman, The House of Al Said. However, after the 1970 Omani coup d’état, in 1972 the currency was reintroduced as the Omani Rial, and had an equal exchange rate. It remains one of the strongest and widely used currencies in the world, and its exchange rate against the dollar is known as the cable. The British Pound Sterling is the oldest currency still in use, and has been around since the year circa 800. It is also referred to as sterling, or the pound sterling, which has its etymological origin in Old English.
