Currency means a system of money in used for common purpose in a country. It’s a medium for exchange of goods and services. A currency becomes weak when the country’s economy slows down. This occurs due to inflation, falling prices of commodities, monetary tightening and political instability. Here is the list of weakest currency around the world against dollar:
Iranian rial is the least valued currency against dollar.
1USD = 42,105 IRR
The currency has lost four times of the real value in almost 15 months due to withdrawal of nuclear agreement and imposing of sanctions again. Its financial structure and corruption pulls down the currency to weaker zone.
Vietnamese Dong is the second weakest currency against dollar.
1USD = 23,208 VND
The country’s currency is undervalued subsequently till date. The Vietnam government is pushing hard to value their currency in to global market. The government is moving in a right direction to compete their currency along with their neighbours and expecting to hit soon like other Asian currencies.
Indonesian Rupiah is the third undervalued currency against dollar.
1USD = 13,980 IDR
Due to the low value of old-style banknotes, by presidential decree of September 5, 2016, 7 new banknotes were issued in denominations from 1 thousand to 100 thousand rupiahs.
Indonesia is an economically stable and quite developed country in Southeast Asia. However, its money has a very low exchange rate. The financial regulatory authorities are trying their best to build their currency to a valuable currency but all their efforts end in failure.
Next Guinean franc adds the list by number four weakest currency versus dollar
1USD = 9,183 GNF
This currency became weak due to the biggest concern of inflation and poverty. The people who are living in the country considers their currency as a precious gift like gold, diamond.
Further added in the list is Laotian Kip which secures the fifth place.
1USD = 8759 LAK
The Lao is the only currency on this list which did not devalue but was originally issued with very low rate. Besides, since its issue in 1952, the currency did strengthen against US Dollar and continues to improve its value.
Sierra Leonean Leon(SLL):
Sierra Leonean Leon ranks sixth worst valued currency against dollar.
1USD = 9,125 SLL
Sierra Leone is a very poor African country, which applied many strategies to value the local money but ended in vain. Recently, a war took place and the periodic deadly Ebola virus.
Here comes Uzbekistan Sum entering seventh place for poor currency against dollar.
1USD = 8,620 UZS
The modern Sum was put into circulation with a ratio of 1 Sum equal to 1000 Sum-coupons from July 1, 1994 by Decree of the President of Uzbekistan.
As a result of the liberalization of their monetary policy from September 5, 2017, the exchange rate of the Sum against the US dollar is set at 1 USD = 8,100 UZS
This currency settles at eighth place in the race of weakest currency versus dollar.
1USD = 6,012 PYG
Paraguay is the second poorest country in South America. The country faces weak economy with high inflation, having low literacy rate and high unemployment and corruption plays a major role to obstruct the currency growth.
Cambodian Riel ensures ninth place in the least currency countered with dollar.
1USD = 4,083 KHR
This currency was amended in 1995 to replace Indochinese Piaster. But the monetary value was not a hit in their country because the people preferred dollar for their transactions. This made the currency weaker.
The Ugandan Shilling captures the title for poor currency at number ten towards dollar.
1USD = 3694 UGX
In 1966, the Uganda Shilling first appeared, replacing the East African Shilling. The latter was the official means of payment in Kenya, Uganda, Tanganyika and Zanzibar.
The Uganda Shilling is a relatively stable currency. Over the past few years, its value hasn’t lost more than 5%.