The top 10 cheapest currencies in the world in 2024

Top 10 cheapest currencies in the world

#Rank, Currency	1 INR Value	1 USD Value	Country
#1 Iranian Rial (IRR)	501.79	42105.00	Iran
#2 Vietnamese Dong (VND)	292.52	24,545.00	Vietnam
#3 Sierra Leonean Leone (SLL)	269.28	22,594.85	Sierra Leone
#4 Lao/Laotian Kip (LAK)	262.14	21,996.25	Lao People's Democratic Republic
#5 Indonesian Rupiah (IDR)	183.31	15,382.40	Indonesia
#6 Uzbekistani Som (UZS)	150.63	12,640.02	Uzbekistan
#7 Guinean Franc (GNF)	102.39	8,591.50	Guinea
#8 Paraguayan Guarani (PYG)	91.72	7,696.92	Paraguay
#9 Cambodian Riel (KHR)	48.10	4,036.00	Cambodia
#10 Ugandan Shilling (UGX)	44.07	3,697.76	Uganda

Further elaborating, the top ten cheapest currencies would be ranked this way in descending order:

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Iranian Rial (IRR)

Presently, 1 Indian Rupee equals 501.79 IRR, making the Iranian Rial the world's least valuable currency. This depreciation can be attributed to factors such as political unrest in the country, the Iran-Iraq war, and the nuclear programme.

Vietnamese Dong (VND)

Vietnam has historically operated under a centralised economy, and while efforts have been made to establish a market economy, there is still a long way to go. Currently, the Vietnamese Dong is experiencing a considerable devaluation.

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Lao/Laotian Kip (LAK)

Since its establishment in 1952, the value of the Lao currency has remained relatively low. On the positive side, the currency has gradually increased in value over time.

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Sierra Leonean Leone (SLL)

Sierra Leone, an African nation, faces severe poverty. The country has a history of scandals, corruption, and wars in Western Africa, including a devastating civil war. As a result, both the currency's value and the country's economy have declined.

Indonesian Rupiah (IDR)

The Indonesian Rupiah has not shown any improvement over the past seven years. Its depreciation can be attributed to various factors, including declining foreign exchange reserves, the central bank's failure to safeguard the currency, and the country's heavy reliance on commodity exports.

Furthermore, the decline in commodity prices has further contributed to the decrease in the currency's value. The presence of foreign investors holding a significant portion of Rupiah sovereign bonds also poses a risk to capital flow.

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Uzbekistani Som (UZS)

Uzbekistan's economy is among the weakest, resulting in a weak currency. While the epidemic has impacted the nation's economy, indications suggest that internal operations will resume in the third quarter of 2022. However, the decline in industrial output has created uncertainty regarding the future of the currency.

Guinean Franc (GNF)

The Guinean Franc serves as the official currency of Guinea. The nation suffers from widespread corruption and political unrest, which have weakened its currency. Year after year, the value of the nation's currency continues to decrease.

Paraguayan Guarani (PYG)

The country experienced a devastating economic collapse resulting in high inflation, corruption, high unemployment, and increased poverty. Each of these factors has had a detrimental effect on the currency.

Cambodian Riel (KHR)-

The primary reason behind the weak Cambodian Riel is the Country's high dollarisation. In the late 80s and early 90s, due to political disabilities, the public confidence in Riel was led by foreign investment in the Country. In the 90s, the US dollar became convenient for people. At its highest, the US dollar accounted for 90 percent of the money in circulation in the Country. In the past two decades, the National Bank of Cambodia has taken several measures, which led to an increase in the circulation of Riel by 80 percent. However, it still highly depends upon the US dollar.

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Ugandan Shilling (UGX)

In 1966, the Ugandan Shilling replaced the East African Shilling. Presently, the Ugandan Shilling is one of the least valuable currencies. Under Idi Amin's rule, Uganda suffered a significant setback due to measures such as immigration laws that negatively impacted the nation's economy. The effects of the president's economic deterioration continue to hinder the country's progress. However, the currency's value has increased in recent years, with devaluations at most 5 percent.

Wrapping up

In conclusion, this list of the top 10 weakest currencies in the world reveals the many challenges these economies face. Factors such as political instability, transition to a market economy, inflation, and external shocks like the Covid-19 pandemic have contributed to the depreciation of these currencies.

While some national currencies have shown marginal improvements, others have struggled to recover their former value. But there is hope for positive change, as countries with rich natural resources and efforts toward political stability have the potential to make progress and improve the value of their currencies in the future.

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Frequently Asked Questions

1. Why is the Iranian Rial considered the world's cheapest currency?

The Iranian Rial is considered the world's lowest currency due to factors such as economic sanctions limiting Iran's petroleum exports, which has resulted in political instability and depreciation of the currency.

2. Which currency holds the title of the highest valuation globally?

The Kuwaiti Dinar is the currency with the highest valuation in the world.

3. What factors contribute to the low value of the Vietnamese Dong?

The Vietnamese Dong struggles with the transition from a centralised to a market economy, and investor caution regarding capital investment in the country keeps the value of the dong low.