What Are the Weakest National Currencies in the World? This List Will Surprise You
The economy plays a major role in every country. You can find out in what condition it is by looking at the exchange rate. If the national currency becomes cheaper, the country is in an economic crisis. The fluctuation of the exchange rate is influenced by unemployment, high inflation, the lack of balance between exports and imports, etc.
The article contains the lowest currencies in the world. With us, you will find out which currency is worth the least.
This is the lowest currency in the world list. Bolivar has been the currency of Venezuela since 1879. Today the cheapest currency to USD is 1 984 946.00 VES / USD.
At first, the currency was calculated in silver, later it switched to gold. Since 2008, there have been paper notes in denominations ranging from 5 to 50,000 bolivars. The economic crisis led to hyperinflation in Venezuela – 830,000%, which made it the most worthless currency. The planned denomination in 2018 was postponed 2 times due to the reconfiguration of payment systems.
President Nicolas Maduro announced that after the change in the denomination of the money, the Petro cryptocurrency, regulated by the Venezuelan government, will be pegged to the national currency. The digital asset was created to “fight against the US dollar,” but in reality, things only got worse. The government independently determines the exchange rate of the American currency, which hastened hyperinflation.
Bolivar is not a freely convertible currency. It is prohibited to buy it for private individuals in Venezuela. In addition to the official price, the country has a thriving black market, where the value of the currency is 10 times higher. In 2014, the price of oil fell, and with it, an economic crisis began in Venezuela. Locals know where the cheapest currency is among dealers. Not everyone is ready to give 5 million bolivars for the dollar exchange rate.
The second one of the weakest currencies in the world is the Iranian rial. The top countries where the currency is cheap did not go without Iran. The cost of 1 dollar for Iranian rials was 42,105 units. On the black market, the price reaches 114,000 riyals. The first drop in the currency began in 2002 when America announced that Iran was a nuclear threat and should be isolated. Ten years later, another recession occurred, which provoked mistrust on the part of residents. Most of them now prefer to keep their money in foreign currency and willingly dispose of rials.
The following factors influenced the depreciation of the local currency:
- Iranian-Iraqi war;
- attacks on Israel;
- threat of nuclear weapons.
For these reasons, most superpowers have imposed sanctions on Iran. Economic and political restrictions impeded the development of the country. Iran did not bring raw materials to the world market, which worsened the state of the economy. Oil, which was the gold mine of the state, was no longer profitable. Iran did not supply it to foreign partners, and there was a budget deficit.
The third place in the list of the most inflated currencies is the Vietnamese dong.
Vietnam is still undergoing a phase of restructuring from a centralized economy to a market economy. The country’s currency is getting cheaper due to these events. 1 US dollar is changed to 22,423 dongs.
Oddly enough, China “took part” in the fall of the Vietnamese currency. The international economic crisis has pushed the Chinese government to weaken the yuan’s position. Vietnam – its direct competitor in exports – took a hit on foreign exchange reserves, making the Vietnamese dong one of the lowest value currencies.
The fourth lowest currency value in the world is the Indonesian rupiah.
Indonesia’s modern currency faced its first major test in 1997-98 when the Asian financial crisis hit. He plunged the rupee against the dollar by 35%. For one dollar, 2000-3000 Indonesian rupiahs were offered.
All banknotes on the obverse depict portraits of politicians, historical and political figures, sultans who went down in the history of Indonesia for their outstanding services to the country.
Each banknote is made in a certain color scheme, but in general, the color of each banknote is sustained in subtle shades of blue, green, and red. Nevertheless, the Indonesian rupee remains one of the cheapest currencies in the world.
Uzbek sum ranks fifth among the least valuable currencies in the world. One dollar is equal to 10 478 UZS.
The economy of the republic, even though there is one of the poorest currencies in the world, is flourishing. 44% of enterprises are engaged in agriculture, 20% – in industry, the rest work in the service sector.
The country produces natural gas, gold, and cotton. The only weak side of Uzbekistan is grain crops. They are dependent on exports because their production is only enough to cover 25% of the demand.
The last place on our list of the smallest money in the world takes the Guinean franc. One dollar is equal to 10,004.64 GNF. Used mainly by African countries, the Guinean franc appeared in early 1959. It replaced the CFA franc but failed miserably. The currency began to lose its quality due to high inflation and progressive poverty in African countries. The government will have to accomplish a feat if they want to overcome the economic crisis and increase the value of their currency.
Now you know what is the most worthless currency and it’s time to find out why currencies are getting cheaper.
The world economy has always been the main topic of concern to the world community. People study it, analyze the economic systems of different countries, keep statistics of the most successful and also the cheapest money in the world. In most cases, rapidly growing inflation and a lack of resources are the main reasons for the depreciation of various national currencies.
This can be felt especially acutely now, during a pandemic, when the economic crisis hit the whole world, and as a result, not all countries were ready for such a turn of events.
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