The list of the world’s most devalued currencies is a somber reflection of economic struggles and poverty, often caused by poor planning, short-sighted decisions, and rampant corruption. Countries falling into this category often suffer from weak judicial systems, limited social cohesion, and sometimes even outbreaks of violence.
Such conditions hinder investments essential for economic growth. In the absence of growth, these countries often grapple with poverty and a decline in the value of their currencies. Below are the top 100 most devalued currencies in the world:
1. Iranian Rial (IRR)
Exchange Rate: 1 USD = 42,070 IRR
The Iranian Rial is the weakest currency in the world. This is not due to the country’s underdevelopment but rather a political and cultural identity crisis, sparked by the Islamic Revolution in 1979. The implementation of strict Islamic laws and the suppression of previous freedoms led to capital flight and a sharp decline in the Rial’s value, which has never fully recovered. Political tensions with the US and the resulting embargo on Iranian oil have further exacerbated the economic situation.
2. Vietnamese Dong (VND)
Exchange Rate: 1 USD = 24,425 VND
The Vietnamese Dong has also found itself at the bottom of the economic ladder, its value eroded by a series of unfortunate events that have made it one of the world’s most undesirable currencies. The country’s costly war with the United States and its aftermath left infrastructure severely damaged. Despite its role as one of the world’s largest producers of cashew nuts, rice, and coffee, Vietnam struggles with inflation and currency restrictions.
3. Sierra Leonean Leone (SLL)
Exchange Rate: 1 USD = 20,969 SLL
The Sierra Leonean Leone is the currency of Sierra Leone, a West African country ravaged by a bloody civil war in the 1990s. While the war cannot be solely blamed for the collapse of the currency and economy, Sierra Leone had been experiencing a decline for years prior. Political instability has taken its toll on the country, hindering unity and progress. The country faces challenges across all aspects of its social existence, and the Ebola epidemic of 2014-16 exposed the fragility of its healthcare system. Significant foreign assistance is required to address these issues.
4. Laotian Kip (LAK)
Exchange Rate: 1 USD = 20,862 LAK
The Laotian Kip is the currency of Laos, a socialist state closely intertwined with Vietnam in terms of history and culture. The Kip has been in use since 1955, when it replaced the French Indochinese Piastre. Reflecting Laos’ socialist economy, the Kip has faced challenges in positioning itself for economic advantage. Despite good relations with its neighbors, most of them also face varying degrees of economic pressures. Laos faces the ongoing challenge of unemployment, with around 80% of the population engaged in subsistence agriculture without significant income or savings.
5. Indonesian Rupiah (IDR)
Exchange Rate: 1 USD = 15,573 IDR
The Indonesian Rupiah has been suffering from a long-standing depreciation. Recent events, including the Asian financial crisis of 1997 and the Great Recession of 2007-2008, have further weakened the currency. The country has not been able to fully leverage its strategic location in Southeast Asia to form sustainable trade agreements with its neighbors. Despite its large population, Indonesia faces challenges in utilizing its agricultural potential.
6. Uzbekistani Som (UZS)
Exchange Rate: 1 USD = 12,940 UZS
The Uzbekistani Som is another notoriously weak currency. Introduced in 1992 after the breakup of the Soviet Union, Uzbekistan has faced numerous challenges in fostering business activity. The country grapples with corruption, infrastructure deficiencies, and being entirely landlocked. Inflation has been a persistent issue, although it seemed to be brought under control in the late 1990s. However, it appears to have spiraled out of control once again. Without significant demand for the Uzbekistani Som, the currency’s weakness is likely to persist.
7. Guinean Francs (GNF)
Exchange Rate: 1 USD = 8,579 GNF
Guinean Francs are used for commerce in Guinea, a West African country with a rich history but a troubled economy. It has faced political unrest, destabilizing progress and undermining economic growth. The Guinean Franc is one of the worst currencies in the world due to the country’s poor economic condition. Mining of bauxite, gold, and uranium primarily benefits foreign companies and does little to create employment opportunities.
8. Guinea-Bissau
Exchange Rate: 1 USD = 8,595 GNF
Guinea-Bissau, also a coastal West African country, faces similar challenges. The country’s small population lives in dire poverty due to prolonged political instability. The fishing industry provides employment, but most fishermen lack adequate equipment and catch only small amounts of fish. Investment is scarce, leaving large sectors of the economy jobless.
9. Paraguayan Guarani (PYG)
Exchange Rate: 1 USD = 7,271 PYG
The Paraguayan Guarani, used in Paraguay, a landlocked South American country with a population of 6.2 million, has also been struggling. The economy relies heavily on agriculture, but despite reports of economic growth, poverty affects around 28% of the population. Agriculture itself has brought challenges, with heavy pesticide use leading to serious health issues.
10. Burundian Franc (BIF)
Exchange Rate: 1 USD = 2,860 BIF
The Burundian Franc is the currency of Burundi, an East African country with abundant land and water resources. However, poverty remains a significant challenge, affecting 80% or more of the population. The country lacks sufficient foreign exchange, leading to low demand for its currency and its inclusion among the world’s worst.
Additional positions 11-100 are listed in a table, providing the currency, country, exchange rate, and location for each.
Closing:
The lowest-valued currencies in the world are those lacking demand, which typically stems from economic stagnation. Therefore, these currencies reflect the level of economic activity, or lack thereof, within their respective countries. As the world undergoes constant changes, so do the economic dynamics of each country. However, one thing is clear: poverty can only be overcome through proper planning and foresight.