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.
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.
Also, a railway is planned to connect Beijing to Laos, which might draw investors to this small country. Although it is the cheapest currency, it is a promising one for improving its value. Considering its natural gifts like gold, diamonds, and aluminum, this country’s currency should be one of the most valuable. However, in 2018 the U.S. claimed that Iran proceeds its nuclear program. The sanctions were sharpened, restricting the country’s access to the world commodity markets.
It created its national currency, the Belarusian Ruble, which exchange rate remained stable since 2016. High taxes, inflation, corruption, and political restrictions had led to a very low price for this currency on the global market. When inflation is low, the price of goods and services will gradually rise steadily.
Top 10 cheapest currencies in the world in 2024
In March 2023, the International Monetary Fund cautioned that a global economic contraction could put renewed pressure on the rupiah. The value of this currency has since achieved its top spot due to its rich oil reserves (contributing to 80% of the country’s GDP), zero tax, and relatively low unemployment. Kuwait also has a high number of expatriates, accounting for over 60% of the population. Further down the Persian Gulf, is Bahrain, holding the second strongest currency, the Bahraini Dinar. Much like Kuwait, Bahrain has achieved its high amount of wealth due to the oil reserves in the kingdom, contributing to over 85% of the GDP.
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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.
Inflation Rate
The Sierra Leonean Leone (SLL) is the official currency of a Western African nation, Sierra Leone. It is considered among the weakest currencies due to slow economic growth, civil war impact, and poor governance. Recession affects the country’s economic growth, and the foreign exchange market is no exception. During the recession, interest rates will fall, devaluing foreign capital.
- As of 2023, here is a list of the top 20 strongest currencies in the world.
- Due to offshore financial services and tourism, the per capita income of Bermuda is extremely high, and is currently fourth in the world.
- So, for example, you swap—more accurately, buy—US dollars with Australian dollars.
- We start with the currency with the lowest value relative to the dollar.
- Dollars are more common in urban areas and tourist hotspots, so the riel is more often used in rural areas.
The central currency of Madagascar, the Malagasy ariary replaced the franc in 2005. The exchange rate affects the pricing of goods and services in a foreign currency. For instance, if the Indonesian rupiah weakens against the rupee, a holiday in India would cost more in rupiah terms.
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Kuwaiti Dinar – KWD
The lack of stability in the government will harm the country’s economic performance, and investors will not profit from it. The investment might increase the domestic currency value and boost foreign capital. Guinea faces corruption and political instability, which leads to a weakened currency. But, can you imagine a country where your INR 2,000 can make you a millionaire, or INR 500 can be worth somewhere in a lakh? Let’s get into the details of the cheapest currencies compared to Indian rupees that can make you feel rich. In March 2021 the Central Bank of Venezuela introduced three new banknotes with the denominations of 200 thousand, 500 thousand and 1 million bolívars in their attempt to somehow stabilize the national economy.
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 weakest currency in the world to inr 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.
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.
Iran could no longer export its petroleum, which brought about 69% of income annually. The sanctions also covered other industries, including petrochemistry and metallurgy. But while making this list, we found it pretty hard to put the least valuable currencies in proper order, since the economic situation is changing rapidly in all these countries.