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A country’s currency is often a reflection of its stability and economic health, carrying deep insights into the nation’s growth potential. However, some currencies are notably fragile, affecting everything from the cost of imports to inflation rates and the purchasing power of everyday citizens.

In 2024, Forbes unveiled its list of the top 10 weakest currencies globally. These rankings spotlight the interplay of geopolitical tensions, economic upheaval, and domestic challenges that contribute to currency struggles. Curious to know which nations are feeling the heat? Let’s explore this list!

Top 10 weakest currencies in the world

1. Iranian Rial

Current rate: 1 Indian Rupee = 498 IRR

The Iranian Rial is currently the most vulnerable currency globally. The currency’s value has plummeted due to political unrest, and economic issues. In 2024, the Rial continues to face immense pressure, with 1 U.S. dollar valued at over 42,000 rials.

2. Vietnamese Dong

Current Rate: 1 Indian Rupee = 300 VND

Despite Vietnam’s growing economy, the Vietnamese Dong remains the second least valuable currency in the world. Today, 1 U.S. dollar is worth over 24,000 VND in 2024. The dong’s low value can be attributed to restrictions on foreign exports, and the government’s attempts to keep its currency low to boost exports.

3. Sierra Leonean Leone

Current Rate: 1 Indian Rupee = 268 SLL

Sierra Leone, located in West Africa, has encountered numerous challenges, including poverty, civil conflict, political instability, and the devastating impact of the Ebola outbreak. Sierra Leonean Leone has an exchange rate of over 13,000 SLL to 1 U.S. dollar, making it one of the lowest-valued currencies globally. The country’s heavy debt burden and inflation contribute to the currency’s weakness.

4. Laotian Kip

Current Rate: 1 Indian Rupee = 260 LAK

The Laotian or Lao Kip has been continuously losing value over the years due to high inflation, foreign debt and slow economic growth. In 2024, one U.S. dollar equals around 21,800 LAK. The currency is also heavily influenced by Laos’ reliance on Chinese investments, which have not been enough to stabilise the Kip.

5. Indonesian Rupiah

Current Rate: 1 Indian Rupee = 187 IDR

The Indonesian Rupiah has faced a long period of decline, and while it is relatively stable compared to others on this list, it is still weak. One U.S. dollar equals around 15,800 IDR in 2024. A mix of inflationary pressures, and economic uncertainties has hindered the Rupiah’s strength and demand.

6. Uzbekistani Som

Current Rate: 1 Indian Rupee = 151 UZS

Uzbekistan possesses significant oil and gas reserves; however, the Uzbekistani Som has faced ongoing challenges, leading to its depreciation over the years. Currently, the exchange rate is approximately 12,800 UZS for 1 U.S. dollar. This weakness in the currency can be attributed to various political inefficiencies within the country.

7. Guinean Franc

Current Rate: 1 Indian Rupee = 101 GNF

The Guinean Franc has been declining due to conflicts in the 1990s. In 2024, the exchange rate was approximately 8,500 GNF to 1 U.S. dollar. Despite Guinea’s flourishing mineral resources, like bauxite, these have not been sufficient to prop up the value of the Franc, and political instability has further weakened the economy.

8. Paraguayan Guarani

Current Rate: 1 Indian Rupee = 92 GNF

The Paraguayan Guarani has a relatively low value compared to the U.S. dollar, with 1 USD equalling over 7,700 PYG in 2024. The country’s challenges, such as inflation, poverty, and unemployment, have severely impacted the Guarani’s potential for growth.

9. Cambodian Riel

Current Rate: 1 Indian Rupee = 47 KHR

The Cambodian Riel has experienced significant weakness, primarily attributed to the widespread dollarisation within the country. Despite efforts by the National Bank of Cambodia to increase the circulation of the Riel, the preference among the public for using the U.S. dollar has contributed to lowering its value. Currently, the exchange rate stands at approximately 4,000 KHR to 1 U.S. dollar.

10. Ugandan Shilling

Current Rate: 1 Indian Rupee = 43 GNF

At the 10th position is the Ugandan Shilling. After Idi Amin’s rule in the 1970s, the Asian community were forced to migrate. Moreover, the country’s economy is struggling with inflation, high levels of debt, and corruption contributing to the weakness of the Ugandan Shilling. As of 2024, the exchange rate stands at approximately 3,600 UGX to 1 U.S. dollar. The country’s reliance on exports like coffee has kept the Shilling from gaining power.

The takeaway

The value of a currency is affected by many factors. In 2024, countries with weak currencies often face economic problems that limit growth and stability. For people in these countries, a weak currency means they can buy less and face higher import costs. This situation can lead to ongoing poverty and economic struggle. By studying these currencies, we can understand the economic difficulties these nations experience and learn how global economics and national policies are connected.

Note: All currency rates are as of 28 Nov 2024.