Last updated on: 07 Jan 2021
Imagine exchanging your ₹500 note and getting 2,50,000 worth of the local currency of some other country. Isn’t it a novel feeling? Your new ₹2000 note will make you a millionaire. The question is, “Where would you be a millionaire by exchanging a single banknote?” Which are these least valuable currencies in the world compared to the India Rupee?
BookMyForex has compared the list of World’s 10 least valuable currencies in 2021.
Looking for the weakest currency in the world? Here’s a list of the top 10 cheapest currencies in the world updated till now.
No.10 – Iraqi Dinar (IQD)
Currency Code: IQD
1 INR = 19.98 IQD
The Iraqi Dinar is Iraq’s currency. It is issued by the Iraqi Central Bank and is subdivided into 1,000 fils, but since 1990, inflation has made the fils redundant. There’s been a lot of political instability in the country in the past decade. As of today, 1 INR equals to 19.98 IQD whereas 1 USD is equal to 1468.89 IQD.
No.9 –Paraguayan Guarani (PYG)
Currency code – PYG
1 INR = 89.27 PYG
PYG is the national currency unit of Paraguay. A disastrous economic downturn resulted in high inflation, corruption, high unemployment rate, and an increase in poverty. All these factors have had a negative influence on the currency.
The Guaraní is currently the least valuable currency unit in the Americas.
No.8 – Uzbekistani Som (UZS)
Currency code – UZS
1 INR = 132.81 UZS
It takes around 8,000 UZS to buy a USD. This country has one of the weakest economies and, consequently, a weak currency. The Uzbekistan government has employed several means to improve the country’s economy. But none has proved fruitful till date. The latest reformatory measure has been taken by the Government in the beginning of this year. The changes that these measures will bring to the currency’s value is yet to be explored. Like many other countries, the pandemic has taken a toll on the country’s economy, though data suggests that the country has resumed its internal activities in the third quarter of this year. The Industrial output, however, has deteriorated in the Q3, paving way for more uncertainties regarding the fate of the currency.
No. 7 – Sierra Leonean Leone (SLL)
Currency code – SLL
1 INR = 132.68 SLL
This is an African country that is heavily affected by poverty. The exchange rate of 1 USD to Sierra Leonean Leone or SLL is 8,000. The country has a history of corruption and scandals. It has also witnessed a heinous civil war along with several other conflicts in the Western African countries. All these have led to the fall of the country’s economy and the currency’s value. The limitation of the country’s export market to diamonds does not bring much scope to the improvement of the economy. In addition to these, the Ebola virus is an infection that constantly affects the population, further depleting financial aids.
No. 6 – Lao or Laotian Kip (LAK)
Currency Code– LAK
1 INR = 117.67 LAK
Interestingly, the Lao is not really a currency that has devalued but is rather a currency that has been following a low rate since its introduction in 1952. It takes around 9,000 Laotian Kip or LSK to purchase 1 USD. On the brighter side, the value of the currency has improved over the years. A $7 billion railway is planned to connect Beijing to Laos, which is anticipated to draw a pool of investors to this small country. The country’s currency, thus, appears to be a promising one, though it is currently listed among the least valuable currencies.
No.5 – Ugandan Shilling(USH)
Currency code – USH
1 INR = 50.27 USH
The Uganda Shilling was introduced in 1966 after it replaced the East African Shilling. The currency falls among the least valuable currencies of the world today. A country of East Africa, Uganda has witnessed a severe setback under the governance of Idi Amin. The president developed policies that negatively contributed to the country’s economy, including immigration policies. The impact of the economic weakening that occurred under the president is still creating obstacles in the country’s development. However, the last few years has seen improvement in the currency’s value, with no more than 5 percent of devaluation.
No.4 – Guinean Franc (GNF)
Currency code – GNF
1 INR = 136.49 INR
It is the official currency of Guinea. There’s a lot of corruption and political instability in the country which has led to their currency becoming weak. As things stand, 1 Guinean Franc equals to 10,029 Guinean Franc. The country is getting its value depreciated year by year.
No. 3 – Indonesian Rupiah (IDR)
Currency code – IDR
1 INR = 205.27 IDR
This is another low performing currency of the world. The currency has shown no improvement in the last 7 years. A number of factors are attributed to its devaluation, which includes its decreasing foreign-exchange reserves due to the central bank’s failure in protecting the currency. Indonesia heavily depends on its export market for commodities. And with the fall of the commodity prices, the value of the currency has seen a further downfall. 35 to 40 percent of the Rupiah sovereign bonds are held by the overseas investors, making the capital flow vulnerable. To strengthen the country’s economy, the government has undertaken several measures such as reducing taxes, promoting tourism, and loosening the rules applied to foreign workers.
No.2 – Vietnamese Dong (VND)
Currency code – VND
1 INR= 326.91 VND
It takes around 23,000 VND to buy 1 USD, making the currency one of the bottom three. The country has long followed a centralised economy. Although the country has embarked on a journey of forming a market economy, it still has a long way to go. The Vietnamese Dong is currently devalued at a high level. But analysts believe that the value of the currency would improve over time due to the improving economy of the country.
No. 1– Iranian Rial (IRR)
Currency code – IRR
1 INR = 591.82 IRR
Iranian Rial is currently listed as the world’s cheapest currency. The downfall of the currency value can be explained by several factors. To begin with, the end of the Islamic Revolution in 1979 was followed by the withdrawal of foreign investors from the country. This led to the currency’s devaluation. The nuclear power programs of the country, along with the Iran-Iraq war, caused huge financial expenses. The government’s decision to restrict foreign currency in the nation lifted the black market to a significant level. The withdrawal of the nuclear agreement with Iran by the US government in 2018 severely affected Iran’s export market, eventually resulting in the currency’s current devaluation of 600 percent.
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