A steady economy, low inflation and low interest rates are typically linked to a strong currency. However, a weak currency is more frequently linked to economic unpredictability, high inflation, and high interest rates.
For the countries that use them, the weakening of these currencies may have a variety of unfavorable effects.
Their inability to import products and services may make them more expensive and cause shortages.
They might find it challenging to draw in outside capital, which might hinder economic expansion.
Below are the top 6 weakest world currencies
The rupiah is the official currency of Indonesia. The name was derived from the Sanskrit word for silver, ‘rupyakam’.
The rupiah, which didn’t have international recognition from October 1946 to March 1950 – has been subjected to high inflation for most of its existence.
Although various attempts have been put in place to maintain its value, all were eventually abandoned.
The Asian financial crisis of 1997, 2007-2008 Great Recession and the Covid-19 pandemic hit the currency hard and the rupiah has been weakened although the Indonesian economy has remained relatively stable.
1 pound = 19479.47 ru, USD -15311.30 and 1 Naira =19.94 rupiah.
2. Laotian Kip (LAK)
Laos is one of the poorest countries in Southeast Asia and the Kip has been their currency since 1955. It replaced the French Indochinese piastre.
1 pound is equivalent 24, 552.65 kip, 1 dollar is equivalent to 19260 kip and 1 Naira equals 25.08
3. Sierra Leonean Leone (SLL)
Before experiencing a significant devaluation, the currency, which was created in 1964 and used for a very short time, was worth more than a US dollar in the 1980s.
Although several different versions of the Leone have been launched to stabilize the currency since the civil war in Sierra Leone began, inflation is still on the rise and is currently at 37.8%.
The Leone was more valuable than the US dollar until the 1980s. Although the old Leone denominations are still in use, a new Leone was introduced in July 2022.
4. Paraguayan Guarani (PYG)
For the Paraguayan Guarani, 1 pound equals 9,260, 1 USD equals 7266. 78 and 1 Naira equals 9.46.
5. Vietnamese Dong (VND)
The Vietnamese Dong is the second weakest currency in the world.
Vietnam was reunified in July 1976 and the dong reunified to create a single currency in May 1978 and although the currency was reworked in an attempt to increase the currency’s value.
Miscalculations caused inflation to hit 774% in 1986. The Vietnamese dong has since been stabilised but the economic shocks are still felt.
1 pound is equivalent to 30,483.78 dong, 1 USD equals 23,945 dong and 1 Naira is equivalent to 30.47 Vietnamese dong.
People Also Read: Dollar To Naira Exchange Rate On The Black Market
6. Iranian Rial (IRR)
The Iran-Iraq conflict and political tensions with the United States of America are the primary causes of the Iranian rial’s status as the world’s weakest currency.
Due to the massive amount of capital that left Iran after the Islamic Revolution in 1979, the value of the Iranian rial fell quickly.
An estimated $30–40 billion departed the country during the revolution, according to estimates.
In 2022, the value of the Rial fell by 29% with high speed after the death of Masha Amini – a 22-year-old Iranian woman who died in a hospital after having a heart attack at a police station(for alleged police brutality).
1 pound is currently equivalent to 53,817 rials, 1 USD to 42,250 rials and 1 Naira is equivalent to 53.76.
Impact Of Nigeria’s Rising Inflation Rate On The Economy