In the global financial landscape dominated by currencies like the US dollar and euro, lesser-known currencies are grappling with profound devaluation. These currencies, often labeled as the world’s “weakest” or “least valued,” are predominantly from nations burdened by severe economic difficulties.
Several factors contribute to the devaluation of a currency. Key reasons include high inflation rates, limited economic diversification and foreign investment, political instability, ongoing conflicts, and international sanctions.
According to a Forbes report, the Lebanese pound is the weakest currency in the world.
Here’s a look at the top 10 weakest currencies in the world, ranked by their exchange rates relative to the US dollar.
Lebanese pound (LBP)
The Lebanese pound currently ranks as the world’s weakest currency, with $1 equaling approximately 89,578 Lebanese pounds.
The sharp depreciation of the Lebanese pound reflects Lebanon’s deeply troubled economy, characterized by rampant unemployment, a severe banking crisis, political turmoil, and inflation rates soaring above 200%. The country’s economic troubles can be traced to the 2019 financial crisis, worsened by the impact of the COVID-19 pandemic and the devastating Beirut port explosion in 2020.
Iranian rial (IRR)
One Iranian rial is presently valued at $0.000024, resulting in $1 being equivalent to 42,087 Iranian rial.
The Iranian rial is widely recognized as the world’s least valuable currency, currently exchanging approximately 42,225 IRR for 1 US dollar on the black market, a decline that began following the 1979 Islamic Revolution amid political instability and economic sanctions.
Vietnamese dong (VND)
The Vietnamese dong takes the third spot, with each unit of the currency able to purchase $0.000039, equating to $1 being worth approximately 25,442 Vietnamese dong.
A number of variables, such as interest rates, inflation rates, economic growth, and export-import activity, affect the value of the Vietnamese dong.
Laotian kip (LAK)
The Laotian, or Lao, kip, introduced in the 1950s, ranks as the fourth weakest currency, with 1 kip valued at $0.000046, making $1 equivalent to 21,705 kip.
Laos, one of Southeast Asia’s least developed economies, has lagged behind its neighbors due to heavy dependence on agriculture and natural resource exports, coupled with limited foreign investment in its industrial and service sectors.
Sierra Leonean leone (SLL)
Introduced in 1964, one unit of the Sierra Leonean national currency buys $0.000048, translating to $1 being equivalent to 20,969 leones.
Sierra Leone’s economy faces numerous challenges, including high inflation, widespread poverty, and limited economic diversification, primarily relying on commodities like diamonds and agriculture, which makes its currency vulnerable to global market price fluctuations.
Indonesian rupiah (IDR)
Despite being the world’s fourth-most populous nation and experiencing significant economic growth over the last two decades, Indonesia’s currency continues to display weakness, with one rupiah currently valued at $0.000061, meaning $1 could purchase approximately 16,301 rupiah.
The country’s economic growth has also been hampered by political instability and the impact of the COVID-19 pandemic.
Uzbekistan som (UZS)
Introduced in 1993, Uzbekistan’s national currency, the som, is currently valued at $0.000079 per unit, meaning $1 is equivalent to 12,640 som.
Uzbekistan has seen economic growth pick up following reforms in the mid-2010s; however, the nation still heavily depends on natural resource exports, faces persistent high inflation, and struggles with limited economic diversification.
Guinean franc (GNF)
The Guinean franc, introduced in 1959, is currently valued at $0.000116, making $1 equivalent to 8,614 Guinean francs.
Guinea has grappled with persistent political instability and economic turmoil, which have severely impacted the Guinean franc. The economy is largely dependent on natural resource exports, with weak infrastructure and minimal foreign investment exacerbating its challenges.
Paraguayan guarani (PYG)
Introduced in 1952, the Paraguayan guarani is currently valued at $0.000133, making $1 equivalent to 7,528 guarani.
Paraguay’s economy has faced numerous challenges, such as high inflation, corruption, inadequate education quality, and high unemployment, all of which have contributed to the devaluation of the guarani over time, positioning it as one of the world’s least valuable currencies.
Malagasy ariary (MGA)
Launched in 1961, the Malagasy ariary is Madagascar’s official currency, having fully replaced the franc in 2005. Presently valued at $0.000225 per unit, this translates to $1 being worth 4,454 ariary.
Madagascar, an island nation off the southeastern coast of Africa, relies primarily on agriculture—particularly raffia cultivation—mining, fishing, and forestry as key components of its economy. Its top exports include vanilla, nickel metal, and cloves.
