TOP 10 The Weakest World Currencies in 2018
Most people know about the strongest, most stable and powerful world currencies, for example, British Pound, Swiss Franc (Swissie), US Dollar, Euro and others (TOP 10 the strongest currencies).
These Сurrencies are the most stable as well as countries issuing them.
However, what's about the cheapest world currencies? Who knows their titles and what countries they are issued in…?
While making this List we found that it's definitely hard to set the proper order of least valueble currencies, due to the fact that the economic situation is changing rapidly in all countries.
However, it is possible to define the certain devalued national currencies at he moment. Thus lets look at 10 cheapest foreign currencies against US Dollar.
The exchange rate was updated on the following date: Mar 05 2018.
No.1 – Iranian Rial
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Currency code – IRR
1 USD = 42025 IRR (official rate)
1 USD = ~67000 IRR (black market rate)
Iranian Rial – is the lowest currency in the world.
Iran-Iraq War, Israel attacking, as well as the possibility of a Nuclear Weapon threatening the world from Iran government caused world superpowers to force economic and political sanctions. These measures included restricting access to the world commodity market and led to significant downturn in their economy. Being an oil exporter, Iran could no longer export its oil, which created a critical deficit in their budget.
All this caused Iranian Rial to become the “worst" world currency. From 2016, USA and EU have lifted some sanctions alternately, which should improve economic situation and stabilize the local money.
No.2 – Vietnamese Dong
Currency code – VND
1 USD= 22770 VND
Vietnam is still on its hard path from the centralized economy type to the market one, and consequently this country currency almost devalued today. At the moment Dong takes the second place in our “poorest currencies list".
However, experts insist that Vietnamese Government is going the right way and soon it can catch up with its closer Asian neighbors.
No.3 – Indonesian Rupiah
Currency code – IDR
1 USD = 13765 IDR
Indonesia is economically stable and developed country in South East Asia. However, its money has very low exchange rate. The regulatory authorities of the country are taking all measures to strengthen national currency, but all their efforts lead only to insignificant changes today.
No.4 – Guinean Franc
Currency code – GNF
1 USD = 9055 GNF
Regarding high inflation rate, progressing poverty and gangsters prosperity the currency of Guinea – African country is the most inflated currency.
Considering wealthy natural gifts: gold, adamants and aluminum the currency of this country must be more expensive (value).
No.5 – Lao or Laotian Kip
Currency code – LAK
1 USD = 8288 LAK
LAO is the only currency from this list, which did not devalue, but originally was issued with such low rate. Besides, from its issue date in 1952, the currency did strengthen against US Dollar and continue to improve its value.
No.6 – Uzbek Som
Currency code – UZS
1 USD = 8169 UZS
The modern som was put into circulation with the ratio of 1 som equal to 1000 som-coupons since July 1, 1994 by the Decree of the President of Uzbekistan.
As a result of the liberalization of the monetary policy, from September 5, 2017, the exchange rate of the Sjm against the US dollar is set at 1 USD = 8100 UZS, with an estimated range of 8000-8150 UZS for 1 US dollar.
No.7 – Sierra Leonean Leone
Currency code – SLL
1 USD = 7680 SLL
Sierra Leone is a very poor African country, which handled out many serious tests and this caused the local money to devalue. Recently, a war took place and now Ebola death virus prevails.
No.8 – Paraguayan Guarani
Currency code – PYG
1 USD = 5521 PYG
Paraguay is the second poverty South American country. It is a disastrous economic downturn, which means inflation, corruption, low education quality, enormous number of poor people, high unemployment rate, etc.
Paraguay exports cotton and soybean, but this is hardly enough to cover expenses.
No.9 – Cambodian Riel
Currency code – KHR
1 USD = 3985 KHR
Cambodian Riel is the currency of Monarch State in South East Asia. This monetary unit was implemented in 1995 to change Indochinese Piaster. Originally, Riel had a low exchange rate and was not popular among locals who had decided to use foreign currencies.
A larger part of Cambodian prefer to use US dollar for payments now, what cause the local currency to devalue more.
No.10 – Burmese Kyat
Currency code – MMK
1 USD = 1340 MMK
The monetary unit of the State of Myanmar (Burma) is the Myanmar (Burmese) kyat. One Burmese qyat is equal to 100 pyas.
In circulation there are denominations of 1, 5, 10, 20, 50, 100, 200, 500, 1000, 5000 and 10000 kyat, as well as coins with denominations of 100, 50, 10, 5 and 1 kyat.
In the State of Myanmar, free import and export of the national currency is prohibited. Certain restrictions also applied to foreign currency, as it may not be more than six months on the territory of the state.
Out of TOP 10 (denominated)
Denomination is a change in the nominal value of banknotes, usually after hyperinflation in order to stabilize the currency and simplify the calculations.
During the denomination, there is an exchange of old banknotes to new ones, which, as a rule, have a smaller denomination.
Due to this fact some of the currencies has left the above list.
Sao Tomean Dobra
Currency code – STD
1 USD = 22691 STD (before denomination)
The denomination was held on the 1st of January 2018. 1 new dobra equal to 1,000 of the previous dobras
Two small islands in West Africa called St. Tome and Principe are exporting cacao, coffee and coconuts and this is not enough for the local economy support at appropriate level.
Recently, oil fields were found on the St. Tome Island and that is why Dobra can improve its economy soon.
Currency code – BYR
1 USD = 20846 BYR (before denomination)
The denomination was held on the 1st of July 2016. 1 new (BYN) = 10,000 old (BYR)
Belarusian republic is the emigrant country after USSR collapse in 1992. It created its own national currency – Belarusian Ruble that is still falling as per its exchange rate. High taxes, inflation, corruption and political restrictions led to significantly low price for this currency inside the global market.
Why do currencies devalue?
In most cases, state currencies devalue because of economic downturn inside a country. This cause balance of payments deficit and the inflation rate to grow.
This can be a sequence of different economic downturns such as war actions, GDP decreasing, commodities devaluation serving as exports basics, purchasing power falling, credit conditions tightening, political instability inside a country and etc.
Devaluation (currency devaluation) is often tied with incorrectly organized monetary policy and relating decisions of fiscal controls (Central Banking System).