I know you are akin to the highest currencies in the world, but how about the Weakest Currency in the World 2021? In other to educate you on this topic, we took to the task to compile and discuss the Top 10 Weakest Currencies in the World Today in this informative piece. If you are still interested and willing to find out the currencies that made the list, journey with us and read from beginning to the end.
Top 10 Weakest Currencies in the World Today
Currency refers to money in simple terms and it can be in any form as long as it is recognized and acceptable. Every country has its currencies used to trade and pay for services. However, not every currency is worth having as the worth of some is demeaning.
Haven discussed the Strongest Currency in Africa, today we have compiled the highlight of the Top 10 Weakest Currencies in the World Today below.
1. Venezuelan Sovereign Bolívar
1 USD = 1,552,540 VES
1 EUR = 1,878,793 VES
The number one Weakest Currency in the World is the Venezuelan Sovereign Bolivar. More so, it is considered to be the cheapest currency in the world. this is not the first time that the Venezuelan Sovereign Bolivar will be listed at the top spot. Also, the currency suffered significantly from inflation due to COVID-19, which further saw the currency devalued.
2. Iranian Rial
1 USD = 41,908 IRR
1 EUR = 50,718 IRR
The Iranian Rial is considered to be the second Lowest Currency in the World. the currency of this currency began to suffer after the Islamic Revolution in 1979. At that time, many businesses have relocated out of the country because of the crisis. To further worsen the case, the country was involved in a neighboring war with Iraq, as well the country was sanctioned because of its’s nuclear program.
All of these contributed to the depreciation of the Iranian Rial making it come second on our list.
3. Vietnamese Dong
1 USD = 23,002 VND
1 EUR = 27,860 VND
Taking us further as we move to the third position on the Top 10 Weakest Currencies in the World Today is the Vietnamese Dong. The currency continued to be on its hard path despite migrating from a centralized economy to a market economy. The impact of this action has consequently affected the national currency and it is very devalued today.
4. Indonesian Rupiah
1 USD = 14,032 IDR
1 EUR = 16,978 IDR
The Indonesian Rupiah is the fourth Weakest Currency in the World despite being an economically stable country. The currency yet continues to depreciate despite the government’s effort to strengthen its national currency by increasing interest rates as well as buying sovereign bonds. Another reason is that the currency has an extremely low exchange rate.
5. Uzbek Sum
1 USD = 10,483 UZS
1 EUR = 12,687 UZS
Uzbek Sum is the national currency of Uzbekistan and it has an extremely low exchange rate as well. The reason could be attributed to the liberalization of their monetary policy in 2017. More so, the government devalued its national currency by almost half intending to end decades of market isolation and tempt investors towards the commodity-rich country. Read Also: Top 10 Most Stable Currencies in the World
6. Guinean Franc
1 USD = 10,234 GNF
1 EUR = 12,384 GNF
Guinea is the first African country to have its national currency make the list of Top 10 Weakest Currencies in the World Today. It is sad despite the country being rich in diverse mineral resources, its economy has been hindered because of political instability and Ebola outbreaks. In addition, the high inflation rate, rising poverty rate, and growing gangsters are additional reasons why the Guinean Franc is devalued.
7. Sierra Leonean Leone
1 USD = 10,213 SLL
1 EUR = 12,360 SLL
Sierra Leone has the seventh Weakest Currency in the World following its African counterpart, Guinea. There is no doubt that Sierra Leone is a poor country and has experienced its fair share of war and crisis. Not forgetting also, the impact of the deadly Ebola virus that is recurrent in the country played on its economy.
8. Lao or Laotian Kip
1 USD = 9,322 LAK
1 EUR = 11,281 LAK
The Laotian Kip is ranked as the eighth Lowest Currency in the World. The reason for its weakness and low value is unlike that of any other national currency enlisted before now or after. The currency was not forced to devalue, rather it was issued originally with a very low exchange rate against the USD back in 1952.
9. Paraguayan Guarani
1 USD = 6,874 PYG
1 EUR = 8,322 PYG
The Paraguayan Guarani comes in as the ninth Weakest Currency in the World 2021 for many reasons. Despite being a high exporter of exports cotton and soybeans, the national currency is grossly affected by factors such as the ever-rising inflation rate, economic recession, high level of corruption, low education quality, and high unemployment.
10. Cambodian Riel
1 USD = 4,055 KHR
1 EUR = 4,908 KHR
The tenth Lowest Currency in the World is the Cambodian Riel probably because it is not a popular currency even among citizens of the country who preferred the US dollar to their national currency.
To date, the US dollar is used for 90% of transactions in Cambodia thereby affecting the Cambodian riel and causing it to be less popular and correspondingly lower value. Cambodia is also among the least developed countries in the world.
We have come to the end of our discussion I bet you had fun reading through the Top 10 Weakest Currencies in the World Today. There are many reasons why currency loses value, but most importantly the weakness and low value of these currencies reflect the bad organized monetary policy as well as the poor decisions of fiscal controls of the central banking systems of these countries.