There is no doubt that when it comes to strong currencies then the Pound, Euro, and Dollar comes to one’s mind straight away. However, if someone asks you of the weakest currencies then you have no sure shot at it. This is why some of the countries who have weak currencies due to instability issues are included here.
Everyone knows of the Ruble of Belarusian Republic to have a very low exchange rate. However, the update is that the Belarusian currency has undergone some changes in July 2016 to be better stable. Thus, a few zeros have disappeared in comparison now.
While the economic conditions keep changing throughout the world, finding out the weakest ones is quite tough. The reason behind should be known. Currencies normally become devalued when an economic downturn happens. This can be due to payment deficit that remain unbalanced while inflation continues to rise.
The reasons for downturns can be many like war, gross domestic product (GDP), commodity devaluation, tight credits conditions, political instability, law and order anomaly, decreasing purchasing power and many similar others. When the Central Banking System is out of decisions for making fiscal controls, this usually happens.
However, one way, is to compare the currencies against the dollar to set the list. Thus, the list is given below
10. Cambodian Riel
4055 KHRs make up to form 1 USD in the world as the currency is used in the Monarch State in South East Asia. It came into being in 1995 when the Indochinese Piaster was changed. Locals also used foreign currencies as the rate at the time was too low. Even now a great part of Cambodia uses the US dollar for payments, thus the currency is devalued more than ever.
9. Sierra Leonean Leone
4129 SLLs are equivalent to 1 USD while Leone continues to be a very poor country. The recent war was already much and now the Ebola virus deaths spread there has devalued it even more.
8. Paraguayan Guarani
Even though it exports cotton and soybean but it is hardly able to make up for its expenses through them. 5950 PYGs make up 1 USD. It is the second poverty struck country in South African region and is disastrous due to inflation, low education, corruption and of course the high unemployment rate.
7. Guinean Franc
While 7822 GNF are equal to 1 USD this is a place where gangsters live and there is increasing poverty as well as inflation. It has natural commodities like gold, aluminum etc but yet they don’t have a high exchange rate.
6. Laotian Kip
This is a currency that hasn’t devalued but it has low exchange rate from the start. Issued in 1952, they are still improving against the dollar but yet 8144 LAKs make up 1 USD.
5. Indonesian Rupiah
While 13873 IDRs are equivalent to just 1 USD, this country is quite stable and developed. It is unknown why all steps taken by authorities to strengthen it everyday are not bringing its exchange rate high or even changed a bit more.
4. Belarusian Ruble
After the USSR collapsed in 1992, Belarusian Republic has been known. It is still falling in exchange rate due to inflation, corruption, and political conditions. 20,846 BYRs make up 1 USD today.
3. Vietnamese Dong
It is trying to come aboard from a centralized economy to a market type but it is truly the most devaluated today. 2,396 VNDs equal 1 USD even though reports say the government is trying all out efforts for increasing exchange rate.
2. Sao Tomean Dobra
These are two small West African Islands called St Tome and Principe. They export coconuts, cacao, and coffee but it is not enough to make up for the economy. Just recently, oil fields were found on St Tome. This is why the economy is expected to improve soon. However, right now 22,691 STDs make 1 USD.
1. Iranian Rial
With the Iran-Iraq war and Israel attacks, there are even Nuclear War possibilities from the Iran government. The superpowers did impose sanctions but since they are lifted it might be hope for them now. The changes shall soon be visible but right now it is the weakest currency. It makes up for the weakest currency due to past sanctions. Today, 30,184 IRR make up 1 USD.