Weakest Currencies Around the World
Tuesday, June 9, 2020, 6:00 AM | Leave Comment
Currency is the per-unit value of one denomination. It is cardinal to know about the weakest currencies in the world, especially before someone needs to travel somewhere or to undergo any transaction.
Most of the depreciated currencies are from Africa and Asia. This is caused by the putrid policies and deep-seated economic issues.
Also, in the upcoming years, it can be said or predicted that the peso or the som would instead attain gold standard status if the very Fiat currency survives that way.
There are certain weakest currencies in the world that aren’t as stable as they should be. As per lowestcurrency.com the Venezuelan Sovereign Bolivar holds the first place among the most devalued currencies in the world. Let us look at some of the weakest currencies around the world.
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Venezuelan Bolivar
Rate:
1 USD = 182,932 VEF.
1 EUR = 199,764 VEF.This currency is the most inflated in the world. It has majorly suffered inflation due to the COVID 19 impact and recorded the lowest currency value of the year.
VEF is the currency code anBs is the symbol of this currency.
Problems of rampant corruption, high rate of unemployment, authoritarian regime, high dependence of the country on oil reserves, gross human rights violation, inflation to the tune of one million percent a year, and numerous other problems have caused the low value of the Venezuelan Bolivar.
Over the last 180 days, i.e., 5/12/2019 to 31/05/2020 if we note the exchange rate history of the VEF the variations are as under:
Highest: 2,48,953 VEF on 22nd March 2020.
Lowest: 99,875 VEF on 01st May 2020.
Average: 2,44,352 VEF over this period.On 20th August 2018, the government devalued the VEF by 95% and pegged it to the government’s oil-linked crypto currency, Petro.
Petro was also introduced by the government to fight the US Dollar. However, it was not effective, and it only hyper-inflated the rate.
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Iranian Rial
Rate:
1 USD = 177,500 IRR (Black market rate).
1 USD = 41,924 IRR (Official rate).
1 EUR = 45,794 IRRIRR is the second cheapest currency in the world.
The main reason responsible for the high devaluation of this currency is stated to be the start of the Islamic Revolution of 1979, which forced numerous businesses to leave the country.
The situation was aggravated by the Iran – Iraq war and the heavy sanctions imposed on it by the other countries of the world because of its nuclear program.
The government even restricted the very access to any foreign currency for its citizens. It led to the devaluation of currency up to 400%.
Iran signed a nuclear agreement in 2015 with the U.S., France, UK, China, Russia, and Germany for the mitigation of sanctions. It improved the situation, and the currency was stabilized for the time being.
However, in the year 2018, restrictions were imposed on the country and its access to the world commodity market thereof. This void in connectivity brought up a critical deficit in the national budget. Eventually, by the year 2020, Iran faced major inflation and currency devaluation for up to 600%.
Over the last 180 days, i.e., 5/12/2019 to 31/05/2020 if we note the exchange rate history of the IRR the variations are as under:
Highest: 42,265 IRR on 02nd May 2020.
Lowest: 42,030 IRR on 25th March 2020.
Average: 42,110 IRR over this period. -
Vietnamese Dong
Rate:
1 USD = 23,260 VND.
1 EUR = 25,403 VND.Vietnamese Dong is the third-lowest currency in the world.
The history of the major war that this country suffered, poverty, and destabilization have caused a low value of its currency.
However, this country is on the path to improvement. It has turned its economy from a centralized economy to a market economy and is one of America’s greatest allies.
Vietnamese currency might revive and gain in the near future.
Over the last 180 days, i.e., 5/12/2019 to 31/05/2020 if we note the exchange rate history of the VND the variations are as under:
Highest: 23,763.20 IRR on 24March 2020.
Lowest: 23,072.43 VND on 11 Dec 2020.
Average: 23,284.94 VND over this period. -
Indonesian Rupiah
Rate:
1 USD = 14,786 IDR.
1 EUR = 16,149 IDR.In fourth place, we have the Indonesian Rupiah.
There was a new issuance of denominations from 1000 to 100 thousand rupiahs in September 2015.
Indonesia is said to be an economically stable and quite developed country in the Southeast Asian region. However, the IDR has a very low exchange rate.
Over the last 180 days, i.e., 5/12/2019 to 31/05/2020 if we note the exchange rate history of the IDR the variations are as under:
Highest: 16,975 IDR on 23rd March 2020.
Lowest: 13,218 IDR on 27th January 2020.
Average: 14,539 IDR over this period. -
Uzbek Sum
Rate:
1 USD = 10,134 UZS.
1 EUR = 11,068 UZS.The Uzbek Sum holds fifth place in terms of the weakest currency.
It is said to be put in circulation by Decree of the President of Uzbekistan. The modifications in the very monetary policy led to the rate of the Sum against USD varying. And thus, it impacted the very value of denominations. Even liberalization impacted the country and the economic policies related to it and eventually led to the loss of denominations value to it.
Over the last 180 days, i.e., 5/12/2019 to 31/05/2020 if we note the exchange rate history of the UZS the variations are as under:
Highest: 10,196.68 UZS on 1May 2020.
Lowest: 9,396.09 UZS on 27th March 2020.
Average: 9,693.76 UZS over this period. -
Sierra Leone
The nation named Sierra Leone holds the 6th place at a value of 9,779 SLL per 1USD. It is an impoverished country of Africa and has a devalued monetary policy. A war broke out there, and the Ebola virus outbreak is also recurrent, affecting the nation’s very policies. These factors affected the value of the country’s currency and, thus, impacted the very monetary value to it.
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Guinean Franc
At rank 7, we have Guinean Franc with a monetary denomination value of 9414 GNF per USD. The devalued currency as a result of high inflation rates, progressing poverty in the nation, and prosperity of gangsters or other illegal activities. Even though this nation has the most natural gifts, yet the currency isn’t most valuable.
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Lao
Rank 8 is held by Lao or Laotian Kip that has a value of 9001 LAK per USD. This currency didn’t devalue, but the rates of it being issued were very less altogether. This currency has the chance of being progressive and strengthening against USD since it showcased the same progress in 1952.
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Paraguayan Guarani and Cambodian Riel
At 9th and 10th positions of the most devalued currencies are Paraguayan Guarani and Cambodian Riel, respectively. The values of these currencies being 6583PYG per USD and 4103KHR per USD, respectively. The reasons for value fallout being a disastrous economic downturn, inflation combined, levels of corruption, lack of educational facilities, high poor population, and increased unemployment. The countries have a low exchange rate, and even the unpopularity of currencies among the foreigners has resulted in the lower value of currency thereto.
With this, we can contemplate major reasons of how monetary value diminished or lowered in the respective countries mentioned thereof. And the major reasons being invasions, corruption, policy failures, and other related factors. The currencies discussed here are as per the rates calculated most recently and the responsible factors thereof.
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