Today, most people know or at least have an idea about the strongest and highest currencies in the world, for example; Euro, US Dollar, Pounds Sterling and some others (see top 5 highest currencies).
These currencies need no announcement.
They are the strongest and most stable currencies, as well as their host countries.
How about the world’s weakest currencies? Do people know them? Do people know their host countries?
This article presents the top five weakest currencies in the world as at today, let us find out if they ring a bell.
1. Venezuelan Sovereign Bolívar
The weakest currency in the world is the Venezuelan Sovereign Bolívar. It suffered a disastrous downfall from inflation due to Covid 19 in 2020 and since then the currency has been struggling. This currency is considered the most inflated in the world.
Due to hyperinflation, the Venezuelan Sovereign Bolívar experienced a re-denomination on August 20, 2018. Old banknotes were replaced with new ones at the rate of 1 new VES to 100,000 old VEF.
Despite this, the currency was not saved from declining.
The Venezuelan Government went on to introduce a cryptocurrency known as ‘Petro’ to fight the US Dollar. Unfortunately, this only increased the hyperinflation rate, because the Government was in charge of determining the dollar exchange rate.
Current Venezuelan Sovereign Bolívar rates to a dollar is around 1USD to 1,552,540 VES.
2. Iranian Rial
Currency code- IRR
The second weakest currency in the world is the Iranian Rial. This currency’s devaluation started as far back as 1979, several things have been responsible for this such as the religious revolution that caused many businesses to leave the country because of the uncertain events, war and economic situation.
The Iranian government later restricted access to foreign currencies for their citizens, which led to a black market influx. All of these drained the economy and devalued the Iranian Rial currency almost by 400%.
After suffering sanctions from the US due to nuclear-related programs, the Iranian Rial further declined as the country could no longer access world commodity markets. Iran could no longer export its oil, a sector that brought in about 69% of the country’s annual income. This created a critical deficit in its national budgets.
By May 2020, Iran faced galloping inflation and the currency was devalued by 600%.
The Iranian government is still actively working to improve the status of its currency despite the several roadblocks previously experienced.
Current Iranian Rial rates to a dollar is about 1 USD to 229,500 IRR.
3. Vietnamese Dong
Currency code- VND
The Vietnamese Dong is the currency with the third weakest value in the world.
The Vietnamese economy is still on a hard path and consequently, their currency is hugely devalued today. At the moment, the Dong takes the third position in our list of weakest world currencies.
Moreover, financial experts have projected that the Vietnamese government is on the right path with matters of their economy and will soon catch up with its Asian neighbours.
Current Vietnamese Dong rates to a dollar is around 1 USD to 23,002 VND.
4. Indonesian Rupiah
Currency code- IDR
Indonesia is a country in Southeast Asia with a stable economy and reasonable development. Unfortunately, its official money has a very low exchange rate.
Like any other country with a devalued currency, the Indonesian government and necessary regulatory authorities have been making efforts to save their currency but despite their efforts they still find their currency struggling.
“Due to the low value of old-style banknotes, by presidential decree of September 5, 2016, 7 new banknotes were issued in denominations from 1 thousand to 100 thousand rupiahs” according to Fxssi.com
Current Indonesian Rupiah rate to a dollar is around 1 USD to 14,032 IDR.
5. Uzbek Sum
Currency code- UZS
The last currency on our list is the Uzbek Sum.
According to ‘fxssi.com’ the Uzbek sum was put into circulation with a ratio of one Uzbek sum equal to one thousand Uzbek sum coupons from July 1, 1994, by decree of the president of Uzbekistan.
Due to the liberation of the Uzbekistan monetary policy from September 5, 2017, the exchange rate of the Uzbek sum against the dollar gained a little bit of strength but it was still not enough to take them out of the weakest currencies in the world in 2021.
Current Uzbek Sum rate to a dollar is around 1 USD to 10,483 UZS.