The Worst Currencies In The World

2024-09-23

Here are some of the worst-performing currencies in the world (as of 2023), typically measured by their low exchange rates against major currencies like the U.S. dollar and their high inflation rates:

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1. Iranian Rial (IRR)

Exchange rate: 1 USD ≈ 42,000 IRR (official rate; black market rates vary)

Reason: Economic sanctions, mismanagement, and inflation have caused the Iranian rial to devalue significantly.

2. Venezuelan Bolívar (VES)

Exchange rate: 1 USD ≈ 32 VES (after several redenominations)

Reason: Venezuela has faced years of hyperinflation and economic collapse, severely devaluing its currency.

3. Vietnamese Dong (VND)

Exchange rate: 1 USD ≈ 24,000 VND

Reason: Vietnam’s currency has historically been weak due to the country’s war-torn history, but its economy is gradually stabilizing.

4. Sierra Leonean Leone (SLL)

Exchange rate: 1 USD ≈ 21,500 SLL

Reason: The Leone suffers from poor economic conditions, inflation, and political instability, making it one of the weakest currencies globally.

5. Lao Kip (LAK)

Exchange rate: 1 USD ≈ 20,000 LAK

Reason: Laos faces significant economic challenges, including reliance on agriculture, leading to a weak currency.

6. Indonesian Rupiah (IDR)

Exchange rate: 1 USD ≈ 15,300 IDR

Reason: Indonesia has a large and growing economy, but its currency has historically been weak due to inflation and a reliance on exports.

7. Guinean Franc (GNF)

Exchange rate: 1 USD ≈ 8,600 GNF

Reason: Guinea’s economy is underdeveloped, with heavy reliance on agriculture and mining, contributing to a weak currency.

8. Paraguayan Guarani (PYG)

Exchange rate: 1 USD ≈ 7,300 PYG

Reason: Paraguay's economy is relatively small, and the Guarani has historically been weak due to inflation and limited diversification.

9. Uzbekistani Som (UZS)

Exchange rate: 1 USD ≈ 12,100 UZS

Reason: The Som has suffered due to inflation, economic reforms, and a reliance on agriculture and natural resources.

10. Congolese Franc (CDF)

Exchange rate: 1 USD ≈ 2,500 CDF

Reason: The Democratic Republic of the Congo (DRC) has a troubled economy due to ongoing conflict, corruption, and poor governance, leading to a weak currency.

11. Burundian Franc (BIF)

Exchange rate: 1 USD ≈ 2,830 BIF

Reason: Burundi's political instability, poor infrastructure, and reliance on agriculture contribute to the weakness of the currency.

12. Ugandan Shilling (UGX)

Exchange rate: 1 USD ≈ 3,700 UGX

Reason: Uganda’s currency has suffered from inflation and a dependence on agriculture, despite some economic growth in recent years.

13. Tanzanian Shilling (TZS)

Exchange rate: 1 USD ≈ 2,500 TZS

Reason: Tanzania’s reliance on agriculture and mining, coupled with inflation, keeps its currency weak.

14. Zambian Kwacha (ZMW)

Exchange rate: 1 USD ≈ 20 ZMW

Reason: Zambia has faced significant economic challenges, including high inflation, debt, and reliance on copper exports.

15. Malagasy Ariary (MGA)

Exchange rate: 1 USD ≈ 4,400 MGA

Reason: Madagascar is one of the poorest countries in the world, with a fragile economy that is highly dependent on agriculture.

These currencies are among the weakest globally due to a combination of factors such as political instability, inflation, economic sanctions, reliance on agriculture or natural resources, and mismanagement of the economy.