The currencies with the lowest face values in 2024
The Kuwaiti dinar reigns supreme as the “strongest” currency against the mighty US dollar in 2024, with one greenback buying barely a third of a dinar. But at the other end of the scale, a dollar will get you tens of thousands of the least valuable foreign currency units. These currencies are often found in nations grappling with severe economic challenges, but there are some exceptions…
Read on to discover the 12 currencies with the lowest face values in relation to the US dollar and find out why a very low exchange rate doesn’t always mean a currency is worthless.
Exchange rates are via XE.com as of 1 August. All dollar amounts in US dollars unless otherwise stated.
A low face value doesn’t always denote a weak currency
In many cases, a low face value against the US dollar denotes a weak currency. It’s often the most obvious indication of a dismal economy characterised by high inflation, poor growth, and enormous budget deficits. But not always.
Countries often choose to devalue their currency against the US dollar. According to Investopedia, a lower exchange rate can stimulate exports since it makes them more affordable for importers. A cheaper currency can also shrink trade deficits, slash sovereign debt burdens, and serve as a magnet to attract tourists keen to take advantage.
Worst-performing currencies against the US dollar
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With this in mind, we’ve distinguished the countries purposely devaluing their currencies against the US dollar from those that aren’t.
For each currency, we’ve also included the percentage change in value relative to the US dollar over the past 10 years. The worst-performing currencies tend to be the weakest in the true sense of the term, but again, there are exceptions. Let’s start with the 12th least valuable currency in exchange rate terms…
12. Colombian peso: $1 = 4,095 COP
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The second oldest currency in our round-up, the Colombian peso debuted in 1810, replacing the Spanish real. It was pegged to the British pound in the early 20th century and then the US dollar from 1931 to 1949.
The peso has lost 53.8% of its value against the US dollar over the past decade. The rate went into a tailspin in 2014 as the price of oil fell. The Colombian economy is heavily dependent on oil exports, and the peso suffered as a result. The COVID-19 pandemic only served to make the situation worse, and political uncertainty in 2022, coupled with high inflation and a decrease in foreign investment further damaged the currency.
12. Colombian peso: $1 = 4,095 COP
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The low point came in November 2022 when the rate bottomed out at 5,117 pesos to the dollar. The currency has since staged a remarkable comeback.
Buoyed by higher commodity prices and a resurgence of foreign investment, the Colombian peso was the best-performing currency against the US dollar in 2023, gaining 25% in value. So far in 2024, the currency is up 6% as its recovery continues.
11. Cambodian riel: $1 = 4,102 KHR
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Under the brutal rule of the communist Khmer Rouge in the 1970s, which murdered millions of its own citizens and destroyed the country’s economy, Cambodia became the first and only country to abolish money.
The riel was launched in 1980 following the end of the regime but has suffered from a lack of confidence since its introduction. The Khmer Rouge’s abolition of money made Cambodians distrustful of the riel and it was largely rejected in favour of the US dollar. As a result, the underused riel tumbled in value.
11. Cambodian riel: $1 = 4,102 KHR
During the late 1990s, high inflation and the effects of the Asian Financial Crisis hastened the descent of the exchange rate. But it stabilised in the early 2000s and hasn’t changed much since, apart from a wobble in the late 2000s caused by the Global Financial Crisis. In the past decade, the riel has dipped by just 1.2% against the US dollar.
Cambodia has been undergoing a process of dedollarisation since the early 2000s and the riel is in much wider use today. This, along with the country’s strong growth, low inflation, and ample foreign currency reserves has helped strengthen the currency.
10. Malagasy ariary: $1 = 4,556 MGA
The ariary has been Madagascar’s currency since 2005 when it replaced the Malagasy franc, though it was introduced decades ago as a denomination of its predecessor. Interestingly, the ariary is divided into five subunits, which makes it one of only two non-decimal currencies in the world (the other is the Mauritanian ouguiya).
The Malagasy franc became the country’s currency in the early 1960s when it was pegged to the French franc. The currency was devalued in the 1980s following a failed nationalisation drive that plunged the country into serious debt, and floated freely from 1994. Since then, Madagascar has lurched from crisis to crisis. Poverty is rife, with 80% living below the breadline. Productivity and growth are sluggish, corruption is widespread, and inflation is stubbornly high.
10. Malagasy ariary: $1 = 4,556 MGA
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When the currency was introduced in 2005, a US dollar bought around 2,000 ariary. Its value began to fall around 2006 and a more alarming plunge began in 2009, when everything from political instability and natural disasters to the fallout of the global financial crisis upended the nation’s economy.
More recently, high inflation and the hesitancy of foreign investors to invest in the country due to the shaky political situation have led to a marked depreciation of the ariary. All in all, the currency has dipped 44.9% in value against the greenback since 2014 when a US dollar bought 2,509 ariary.
9. Paraguayan guaraní: $1 = 7,580 PYG
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The guaraní was introduced in 1944 to replace the Paraguayan peso in a bid to cool inflation. The changeover failed to achieve the desired effect and the currency has since been at the mercy of inflationary pressures and numerous other headwinds.
In 1960, the guaraní was pegged to the greenback at a rate of 126 to the dollar, but the Paraguayan currency’s value continued to crumble on the black market and tumbled further when the US dollar peg was abandoned in 1985.
9. Paraguayan guaraní: $1 = 7,580 PYG
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An increasingly bulging deficit and high debt repayments did the rate no favours, and it began to nosedive in the late 1990s.
Persistent issues with inflation, unemployment, and corruption have further undermined the guaraní, as has Paraguay’s slowing economic growth. Over the past decade, the currency has lost 44% of its value against the US dollar, about the same in percentage terms as Madagascar’s troubled ariary.
8. Guinean franc: $1 = 8,601 GNF
The West African nation of Guinea gained independence from France in 1958 and promptly ditched the French franc-linked CFA franc for its own currency. In 1971, the Guinean franc was replaced with the Guinean syli, but the franc made a comeback in 1985.
Amid political uncertainty and an underperforming economy, the currency depreciated against the US dollar and in the late 1980s, a desperate Guinea attempted to rejoin the French franc zone. The 1990s were marked by conflict and the value of the currency continued to decline.
8. Guinean franc: $1 = 8,601 GNF
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Government overspending, particularly on defence, resulted in a growing deficit and high inflation during the 2000s. The Guinean franc dropped sharply against the US dollar and apart from modest recoveries in 2006 and 2012, the currency fell markedly until 2016. The depreciation has since been much slower, and the rate has stabilised at certain points. Since 2014, the currency has lost 18.3% of its value, the second smallest drop in our round-up.
The currency’s new-found stability is courtesy of Guinea’s stronger economy, which recently propelled the country from low to lower-middle-income status. According to the African Development Bank, Guinea’s economy has become “one of the most resilient in Africa”, mainly thanks to impressive growth, which climbed to an estimated 5.7% last year, and lower inflation.
7. Uzbekistani som: $1 = 12,520 UZS
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Introduced in 1994 following Uzbekistan’s independence from the Soviet Union, the Uzbekistani som replaced the Soviet rouble.
Artificially pegged to the US dollar, the currency was set at an official rate that bore little resemblance to actual market conditions. Rampant inflation undermined the som’s true value, and a thriving black market developed. During the 2000s, the disparity between the two rates became huge, but the government refused to issue higher denomination banknotes as the currency lost its real value. Up to 2013, the highest-value banknote was the 1,000 som, worth just eight US cents today. Until it was withdrawn in 2020, the currency’s smallest denomination coin, the 1 tiyin, was the most worthless coin in the world, with a value of just $0.0000009.
7. Uzbekistani som: $1 = 12,520 UZS
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Uzbeks had to carry around huge wads of cash in large holdalls and plastic bags to pay for day to day shopping, with wheelbarrow-sized loads required for bigger purchases. A sea change came in 2017, a year after the death of the country’s autocratic leader Islam Karimov, when the new government finally abandoned the US dollar peg and floated the currency on the open market as part of a wave of economic reforms. The som instantly lost half its value (it’s now 81.4% less valuable than it was a decade ago).
However, the long overdue devaluation has been a boon for Uzbekistan’s economy, stamping out the black market, opening up the country to more foreign investment, and helping to dampen inflation. The days of carting around wads of cash are long gone, and the highest-denomination banknote is now the 200,000 som, worth around $16 (£12).
6. Syrian pound: $1 = 13,002 SYP
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Prior to the outbreak of the Syrian Civil War in 2011, the Syrian pound, the nation’s currency since 1919, was relatively stable. As the country descended into conflict, Syria’s economy started to unravel, with the imposition of international sanctions further exacerbating the crisis.
Cut off from the global financial system, Syria, led by President Bashar al-Assad (pictured), struggled to access essential goods and services. This, coupled with the collapse of the country’s infrastructure, led to hyperinflation and a dramatic erosion of the Syrian pound’s value.
6. Syrian pound: $1 = 13,002 SYP
The currency’s performance worsened in 2019 with the financial collapse of neighbouring Lebanon. Syria had been relying on Lebanon for access to US dollars, a lifeline that was severed as the Lebanese economy went into meltdown. This dependency on the Lebanese Pound, which was undergoing rapid devaluation itself, has amplified the Syrian pound’s decline.
The combined impact of these factors has been catastrophic. The Syrian pound has lost a staggering 98.9% of its value against the US Dollar over the past decade alone, the economy is on its knees, and millions of Syrians have been pushed into poverty.
5. Indonesian rupiah: $1 = 16,259 IDR
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The rupiah was introduced in 1946, a year after Indonesia became an independent country. The currency has long been at the mercy of high inflation, but it was relatively stable before the late 1990s.
Previously tied to the US dollar and other currencies, the rupiah was free-floated as a consequence of the Asian Financial Crisis of 1997 and 1998. It swiftly shed much of its value. It fluctuated against the US dollar until 2011 when the currency began to trend down alarmingly.
5. Indonesian rupiah: $1 = 16,259 IDR
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The decline has occurred as inflation has spiked in the country, and current account deficits have mushroomed. In contrast, US inflation has been lower, and its monetary policy much tighter, strengthening the dollar against the rupiah. Political instability and the COVID-19 pandemic also contributed to the decline of the rupiah, which has lost 27.7% of its value since 2014.
But it’s not all doom and gloom. Indonesia is a major exporter of commodities such as coal and palm oil. A weak rupiah makes its exports cheaper and therefore more appealing. The exchange rate is also a tourism-booster. According to analyst Adityo Hutomo Sitepu, a weak rupiah can add up to $10 billion (£7.7bn) in export revenue and swell tourist numbers by as much as 15%.
4. Laotian kip: $1 = 22,198 LAK
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The Laotian kip has undergone a complex evolution since the country gained independence from France in 1952. Initially adopting the Royal kip, Laos transitioned to the Pathet Lao kip following the communist takeover in 1975. This was swiftly replaced by the Lao PDR kip just three years later, reflecting the nation’s turbulent political history.
Up until the Asian Financial Crisis of 1997 and 1998, the kip maintained relative stability. However, according to the BBC, the crisis ended up decimating the currency. It experienced a recovery in 2005 as economic conditions improved but started to slip again in the late 2010s. The kip has plummeted in value since 2021.
4. Laotian kip: $1 = 22,198 LAK
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During the 2010s, the Laotian government embarked on the mother of all borrowing sprees to fund ambitious infrastructure megaprojects as part of China’s Belt and Road Initiative. The country is now up to its eyeballs in debt. The huge amount owed to the People’s Republic has led to severe budget cuts and soaring inflation, ultimately crashing the kip.
Since 2014, Laos’s currency has depreciated by 63.8% against the US dollar, with the lion’s share of the decline coming in the past three years.
3. Vietnamese dong: $1 = 25,054 VND
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The Vietnamese dong was born in 1978, two years after Vietnam unified. It replaced the South and North Vietnamese dongs, which were combined to create the new currency.
In 1980, the dong was trading at 2.05 to the US dollar. During the latter part of the decade and early 1990s, runaway inflation chipped away at its value against the greenback. However, in more recent years the dong’s decline has been largely intentional.
3. Vietnamese dong: $1 = 25,054 VND
In 2015 for instance, Vietnam’s Central Bank devalued the currency three times. The effort to dampen the dong’s exchange rate against the US dollar was all about boosting exports as Vietnam emerged as a leading alternative to China on the global manufacturing stage. In fact, the 2015 devaluation was triggered by China’s devaluation of the yuan, which made Vietnamese exports more expensive in comparison.
The Vietnamese economy is in good shape, but the dong has fallen to record lows, having lost 15.1% of its value over the past decade. Though the decline is minor compared to some of the currencies in this round-up, the central bank is reportedly ready to reverse course and intervene to support the ailing currency.
2. Iranian rial: $1 = 41,935 IRR
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The most venerable currency in our round-up, the Iranian rial dates all the way back to 1798. Previously pegged to the US dollar, the currency has crashed in value since the 1979 revolution when there were 70 rials to the dollar.
Capital flight, high levels of corruption, and price controls have battered the currency, but it’s Iran’s foreign policy that’s had the biggest impact on the rial. Robust Western sanctions imposed to impede Iran’s nuclear weapons programme and prevent its sponsorship of terror groups have done the most damage.
2. Iranian rial: $1 = 41,935 IRR
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After the Trump administration pulled out of the 2015 US-Iran nuclear deal and reimposed tough sanctions, the rial went into freefall, dropping from around 27,000 to the dollar in 2015 to an all-time low of 44,135 in 2018.
The rate has since stabilised around the 42,000 mark and the decline of 37.2% over the past decade was concentrated during the period up to 2018. However, the currency has been under renewed pressure of late as tensions flare in the Middle East.
1. Lebanese pound: $1 = 90,007 LBP
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Introduced in the 1930s, the Lebanese pound was a relatively strong and stable currency until the advent of the country’s civil war in 1975. As the conflict raged, inflation shot up, and the Lebanese economy tanked. In 1984 when the situation had yet to reach crisis point, a dollar bought 4.5 pounds.
In the aftermath of the war, which ended in 1990, the rate of inflation jumped to over 100% from 6.6% in 1983. In 1992, the exchange rate had fallen to 1,838 Lebanese pounds per US dollar.
1. Lebanese pound: $1 = 90,007 LBP
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In 1997, the exchange rate was fixed at 1,507.50 Lebanese pounds per US dollar and stayed that way until early 2023 when it was reset to 15,000 pounds per dollar. However, due to the country’s ongoing economic collapse, which started in 2019, the official rate has been hard to come by, and a parallel rate has developed. The actual rate has surpassed 90,000 pounds to the dollar. The Lebanese pound was the world’s most devalued currency in 2023, and it’s slipped 98.3% against the greenback over the past 10 years.
With Lebanon’s financial nightmare showing no signs of ending and a war with Israel a distinct possibility, prospects for the beleaguered currency aren’t looking great.
Now discover the world’s strongest currencies in 2024
