Every day we hear the people comparing the currency of their country with US Dollar and expressing their concern on the weak value of their currency. Let us discuss a number of weakest currencies of the world as compared with US Dollar as a standard currency. The list of weakest currencies in the world is updated in the month of November 2015. We will try to keep it updated on monthly basis. Exchange rates have been taken from Google. However, you may find differences between currency rates. The reason is that these currencies are very volatile. We have also tried to explain the possible reason of weakening of currencies of any particular country. In a previous article we have discussed about the Top 10 Strongest Currencies of the World.
Iran has the weakest currency rate in the world as compared with US Dollar. Iranian Riyal is shortly written as IRR and the highest denomination currency note of Iranian Riyal is 100,000 which is equivalent to 3.34 USD. These days one US Dollar is equal to 29,960 Irani Riyals. People of other countries think that they are having a weak currency rate because one US Dollar equals tens or hundreds of their currency notes but Iranians are top on the list of having weakest currency as US Dollar equals to thousands of their currency notes. In April 2007, Zimbabwe revised their own currency and adopted US dollar as their currency so this title of weakest currency was then shifted to Iran. Iran is one of the West Asian countries. It is 18th largest country on the globe compared by area it has covered. Approximately 75 million is the population of Iran. The sanctions imposed on Iran have damaged its economic condition they are also the major reason of downfall of Irani Currency as well. The banking system of Iran is totally cut off from the global system of banking. This is the result of sanctions imposed by America and the European Union. These sanctions are imposed because of dispute on Iran’s nuclear power project. USA and her allies are of the view that Iran is trying to use the nuclear power to make nuclear weapons. On the other hand Iran has always termed these views merely as baseless allegations and always claims that this nuclear program is solely maintained to produce energy for the country and other advancements in medical science. The sanctions include a ban on trade of Irani oil as well, resultantly Iran is either unable to sell the black gold to other countries or if someone is willing to trade, Iran is not in a position to demand suitable rates for its asset. Situation becomes more critical when those who try to trade and deal with the central bank of Iran have to face threats from USA. These sanctions have damaged the personal lives of Irani citizens at large. For example those who want to study abroad are unable to arrange millions of Irani Riyals because of the higher difference in the currency exchange rates.
São Tomé & Príncipe Dobra
Dobra ranks at number 2 among the weakest currencies of the world. It is the currency of Democratic Republic of São Tomé and Príncipe, shortly written as STD. One US Dollar is equal to 22,400 STD. The economy is based on imports. The highest denomination currency note of Dobra is 100,000 which is equivalent to 4.46 USD.
Dong ranks at number 3 among the weakest currencies of the world. Almost every one of the generation living in their 30’s knows well about the famous war of Vietnam. That war was a defeat for the super powers but it ruined the economy of Vietnam at large. At the moment 1 US Dollar equals 22,335 Dongs. The situation gets much interesting when it is discussed with a resident of Vietnam and instead of being worried about the downfall of currency a rather unique comparison is made. The argument is that a good breakfast costs 30,000 VND on an average and when converted this cost is less than 2 Dollars and again, 2 Dollar is not enough money even to buy a Muffin in USA. The highest denomination currency note of Dong is 500,000 which is equivalent to 22.39 USD.
The Belarusian Ruble is the official currency of Republic of Belarus. The symbol of the currency is BR. The currency of Republic of Belarus before 1992 was Soviet Ruble. The Belarusian Ruble was introduced in the year 2000 and it is still in use. It is a very weak currency as you can exchange 17,445 Belarusian Ruble with 1 USD. The highest denomination currency note of The Republic of Belarus is 5 million Rublei which is equivalent to 286.62 USD.
Rupiah ranks at number 4 among the weakest currencies of the world. The currency of Indonesia is Indonesian rupiah which is denoted as Rp. It is the third weakest currency of world. One unit of US Dollar is equal to 13,799 Rp. State authorities have been trying their best for the stabilization of their currency but various International Financial Crisis played a vital role and the currency is still in the travel of stabilization. The highest denomination currency note of Indonesian Rupiah is 100,000 which is equivalent to 7.25 USD.
Kip ranks at number 5 among the weakest currencies of the world. Kip is the official currency of Laos from 1952. It is also among the less rated currencies on world. Currently8,139 units of this currency are required to replace one unit of US Dollar. Inflation and the Financial Crisis that occurred in Asia in 1997 are the main reasons of the decline of countries economy. The highest denomination currency note of Laotian Kip is 100,000 which is equivalent to 12.29 USD.
Franc ranks at number 6 among the weakest currencies of the world. Currency of the Republic of Guinea cannot be missed while recording the weakest currencies of world. 1 US Dollar equals 7,275 Guinean Francs. Guinea got independence from France in year 1958 and from that day onwards the country is facing political instability and corruption otherwise a country like Guinea that has a lot of valuable minerals shall be a hot target for international investment. If a politically stable government existed in the country the economy will surely rise. The highest denomination currency note of Guinean Franc is 10,000 which is equivalent to 1.37 USD.
Gaurani ranks at number 8 among the weakest currencies of the world. Guarani is the currency of the Republic of Paraguay. 5,635 units of Guarani equal One US Dollar. Inflation, a large and mostly uncontrollable black market, and trade mark of Corruption are the main causes of this much decline of the economy. The highest denomination currency note of Paraguayan Guarani is 100,000 which is equivalent to 17.75 USD.
Sierra Leonean Leone
Leone ranks at number 9 among the weakest currencies of the world. Official currency of Sierra Leone is Leone, one of the weakest currencies. 1$ is equal to 4,495 Leones. The long civil war is the main cause of decline of economy. It is a great loss that cannot be repaired by the money received in exchange of export of diamonds. The highest denomination currency note of Sierra Leonean Leone is 10,000 which is equivalent to 2.22 USD.
Riel ranks at number 10 among the weakest currencies of the world. Kingdom of Cambodia is having its official currency as Riel. It is also a trade mark of weakest currency of present time as well as of past.One US Dollar is equal to 4,061 Riel. Cambodia is one of the countries highly affected by corruption. Corruption has ruined important institutions of state such as Judiciary and Police. Obtaining license for a new business or dealing with violations alleged by police and getting a verdict from court, everything needs under table money or undue influence. These are the root causes who damaged the economy. The highest denomination currency note of Cambodian Riel is 100,000 which is equivalent to 24.62 USD.
The Malagasy Ariary is the official currency of Madagaskar. The Malagasy Ariary was introduced in the year 2005. It is a very weak currency as you can exchange 3,251 Malagasy Ariary with 1 USD. The highest denomination currency note of The Malagasy Ariary is 10,000 The Malagasy Ariary which is equivalent to 3.08 USD.
Shilling ranks at number 11 among the weakest currencies of the world. Currency of the Republic of Uganda is shilling. It is one of the weakest currencies of world. One US Dollar equals 3,553 shillings approximately. Uganda’s economy is mainly based on imports of Coffee and Tea. Despite many obstacles and regional wars Uganda’s economy is a growing economy and the economic situation is getting better. The highest denomination currency note of Ugandan Shilling is 50,000 which is equivalent to 14.07 USD.