Today, the world is witnessing numerous changes both economically and socially, which are directly impacting the currencies of the world. The term weakest currency in the world has been among the top searches of the last few days with the references to war between Ukraine and Russia, changes in the oil prices, new health threats rising with different COVID-19 variants, and Sri Lanka facing the worst economic problem.
The above mention events and other factors deeply impact the value of the currency. A value of a currency is considered as weak when its value falls as compared to currencies of the other countries. A country is considered as weak when its economy is weak or it has a poor economy whereas a strong country has a healthy economy.
Four factors of the most important economic indicators
- Interest Rates
- Economic growth
- Current Account Balance
We have gathered the list of the top 10 weakest currency in the world. Below is the list
Ugandan Shilling (UGX) (1 USD = 3,521 UGX)
Ugandan Shilling came into existence in 1966 and currently is the second weakest currency in the world. It is said that after the tragedy of Idi Amin’s eight-year presidency, the country has never been able to recover fully. He was one of the main culprits to destroy the East African country. The country has been suffering from major issues like corruption, scandals, and theft for decades now.
Cambodian Riel (KHR) (1 USD = 4,045.5 KHR)
Cambodian Riel isn’t one of the most popular currencies in the world. Since 2020, the value of the currency hasn’t changed much. It is because the USD has been the most used currency in Cambodia for the majority of transactions.
Paraguayan Guarani (PYG) (1 USD = 6,861.70 PYG)
The currency has stayed in the same position for a long time. Although it was gradually making progress before the unfortunate events of the COVID-19 pandemic. Paraguayan Guarani improvements can be negligible and have ranked itself among the 10 weakest currencies of the world.
Guinean Franc (GNF) (1 USD = 8900.00 GNF)
In the last two years, the Guinean Franc has gained marginal progress but yet is listed amongst the weakest currencies globally. The analysts are anticipating that Guinea’s rich natural resources can contribute to making significant improvements in the future. However, there can be only gains if the ongoing Ebola outbreaks are managed and the country achieves political stability.
Uzbekistani Som (UZS) (1 USD = 10,812.5 UZS)
Since 2020, the value of Uzbekistani Som has reduced. Uzbekistani Som stands sixth on our list of weakest currency in the world. The country has had several attempts to reform its economy. In 2022, it availed a series of reforms from the federal government to push the Uzbekistan economy. However, it will take some time to overcome the current and previous challenges the country is facing.
Sierra Leonean Leone (SLL) (1 USD = 11,330 SLL)
In 2020, the currency was worth 16% less than the USD. Sierra Leone has been engulfed in scandal and corruption for years. In addition to war-torn parts of the West African nation, thanks to a bloody civil war, the economy has never really gone anywhere. Exporting primarily diamonds, Sierra Leone does not have a diversified economic state, which means prosperity is an alien concept for much of the country.
Laotian Kip (LAK) (1 USD = 11, 890 LAK)
Since 2020, Laotian Kip is not only the lowest valued currency in the world but also the position of the currency has gone worst. In 2021, it has reached its lowest point in the last 15 years. This is due to the high inflation rate and depreciation against foreign currencies.
Indonesian Rupiah (IDR) (1 USD = 14,378.95 IDR)
The Indonesian rupiah ranks third on the list of the weakest currency in the world. In the last two years, the currency has made very few improvements which result in the weakening the currency. However, the government is putting efforts to improve the value of the currency despite its continuous depreciating value.
Vietnamese Dong (VND) (1 USD = 22,901.50 VND)
It would shock you that Vietnam is one of the best performing economies in Asia and yet has the weakest currency among the Asian countries. Yes, it is true. The country is pushing hard to bring back its robust economy and give it a further boost. Since 2020, there is a single improvement as the country is still struggling to shift from a centralized to a market economy. Also, the country has a very small economy as compared to other countries, several investors are still skeptical about investing a huge amount of capital in the country. As a result, Vietnam’s currency is getting effecting.
Iranian Rial (IRR) (1 USD = 42, 250 IRR)
Iran has one of the biggest crude oil market shares in the world. However, it still ranks first place in the weakest currency in the world. There are various reasons for its weak currency such as domestic turmoil, oil prices, United States-led sanctions, and other factors. Also, due to factors such as political instability in the country.
What affects the value of the currency?
As of 2022, the Iranian Rial (IRR) is the weakest currency. The political problems have contributed to making it the weakest currency. Globally, several firms and outlets rarely accept any kind of trade-in IRR currency. Meanwhile, the African countries have overtaken numerous countries overseas in financial stability.
We hope you did find out the answer to your questions in our list of the top 10 weakest currency in the world. There can many reasons which affect the currency of the country. Also, they keep interchanging their position in the list of weakest currency in the world.