Mostly people are interested in the highest currencies till date. They want to know who is on the top as it is in the nature ofre denominate human to always look above in the ladder of hierarchy. But what about the least valued currencies in the world? We should also pay attention to this subject, as it will increase the learning capability of a person about the good policy making. If we look at the top 10 lowest currency in the world, then we get to know the reasons of the devaluation of the currency of a country. Central Bank and government can make policies to control the currency deficit, but other economic factors can also play a great role. Currency loses its value due to economic downturns as GDP decrease, political instability, increase in inflation rate, falling prices of the products that mainly contribute to the country’s export and many more. So the question arises, which country has the lowest currency in the world? The top 10 lowest currency in the world is:
Venezuelan Sovereign Bolívar:
The lowest currency in the world is Bolivar of Venezuelan sovereign. The devaluation mainly occurred due to COVID-19 and even after that it kept getting worst and finally became the most low valued currency of the world in 2020-2021.Its currency code is VES. As the strongest currencies are USD and EURO so the Venezuelan sovereign bolivar rates are given as:
1USD=4,000,815VES.
1EUR=4,745,513VES.
In March 2021, the Central Bank of Venezuela launched three new banknotes in denominations of 200, 500, and 1 million bolivars in an attempt to stabilize the country’s economy. It’s no surprise that this currency is regarded as the world’s most overvalued. On the 20th of August, 2018, the bolivar was redenominated. The main cause was hyperinflation, which peaked at over 830,000 percent and continued to rise day by day at a rate of one new VES for every 100,000 old VEF, old banknotes were replaced with new ones.
If we look at lowest currency in the world in rupees then we have the rates as following:
1VES=39.1687PKR.
This is the value of lowest currency in the world in rupees.
Iranian Riel:
The second-cheapest currency in the world is the Iranian Riel hence it’s the second least valued. Its currency code is IRR and main conversion with USD and euro is given as: 1 USD = 42,025 IRR
1 EUR = 49,701 IRR
Its depreciation began in 1979, following the Islamic Revolution, when many firms fled the nation due to the unpredictability of the situation. Then there was the Iran-Iraq War, followed by economic restrictions imposed as a result of Iran’s nuclear warfare. The Iranian government also restricted citizens’ access to foreign currency that lifted up black market and by that time the currency face a loss of its value by 400%
In 2015, the Iranian government decided to sign a nuclear agreement with the United States, France, the United Kingdom, China, Russia, and Germany in order to reduce sanctions. It helped to improve the situation and keep the local currency stable.
However, the United States asserted in 2018 claiming Iran’s betrayal. Sanctions have been tightened, limiting the country’s access to global commodity markets. Iran was no longer able to export its petroleum, which accounted for roughly 69 percent of its annual revenue. It incurred a significant national budget deficit. This sanction also handled other fields as metallurgy, etc. Further decrease in its currency value by 600% lead the government to make the decision of replacing Riel by Toman, a much simpler currency where 1 Riel is equal to 10 Tomans.
Vietnamese Dong:
The Vietnamese Dong is the world’s third most undervalued currency. So it is the 3rd lowest currency in the world. Vietnam is currently struggling to transition from a centralized to a market economy, and as a result, the country’s currency has depreciated significantly. The Dong is now ranked third among the world’s poorest currencies.
Experts, on the other hand, believe that the Vietnamese government is on the right track and that the country would soon catch up to its Asian neighbours. Its currency code is VND and rates are given as:
1 USD = 22,764 VND
1 EUR = 26,923 VND
Indonesian Rupiah:
Due to the low value of old-style banknotes, the president issued a presidential decree on September 5, 2016, issuing seven new banknotes in values ranging from one thousand to one hundred thousand rupiahs.
Indonesia is a Southeast Asian country that is economically stable and well-developed. Its currency, on the other hand, has an extremely low exchange rate. The country’s regulatory authorities have tried everything they can to bolster the national currency, but their efforts have had only little results. Currency code is abbreviated as IDR.
Rates of Indonesian Rupiah in USD an EURO are: 1 USD = 14,253 IDR
1 EUR = 16,858 IDR.
Uzbekistan Sum:
The current Sum entered circulation on July 1, 1994, with a ratio of 1 Sum to 1000 Sum-coupons, as decreed by the President of Uzbekistan.
As a result of their monetary policy liberalization, the Sum’s exchange rate against the US dollar was established at 1 USD = 8,100 UZS on September 5, 2017, with a projected range of 8,000-8,150 UZS for 1 US dollar. Currency code is UZS. Uzbek Sum in USD and EURO is given as: 1 USD = 10,667 UZS
1 EUR = 12,611 UZS
Sierra Leonean Leone:
Sierra Leone is an impoverished African country that has undergone numerous critical tests, causing the local currency to depreciate. There has just been a battle there, and the deadly Ebola virus has resurfaced.
The Bank of Sierra Leone decided to redenominate the Sierra Leonean Leone in August 2021. Old banknotes will be replaced with new ones known as the New Leone, with 1 New Leone equaling 1,000 old SLL. SLL is the currency code.
Sierra Leonean Leone rates: 1 USD = 10,430 SLL
1 EUR = 12,338 SLL
Guinean Franc:
If we look at the rate of Guinean Francin world ranking, we get: 1 USD = 9,782 GNF
1 EUR = 11,571 GNF
It is simply represented as GNF.
Guinea’s currency has been depreciated due to high inflation, rising poverty, and prospering criminals. Guinea is the African country with one of the most inflated currencies.This country’s currency should be one of the most valuable, given its natural resources such as gold, diamonds, and aluminium.
Lao or Laotian Kip:
Lao or Laotian Kip rates: 1 USD = 9,574 LAK
1 EUR = 11,325 LAK
The Lao is the only currency on this list that did not devalue but was introduced at an extremely low rate when it was first issued. Furthermore, since its inception in 1952, the currency has risen in value versus the US Dollar and continues to do so.
Paraguayan Guarani:
Paraguayan Guarani has a value of: 1 USD = 6,914 PYG
1 EUR = 8,178 PYG hence, PYG is a common representation.
Paraguay is the poorest country in South America. It experienced a devastating economic downturn, which included inflation, corruption, bad education, numerous poor people, significant unemployment, and so on. Paraguay exports cotton and soybeans, but these are insufficient to meet the country’s economic demands..
Cambodian Riel:
The Cambodian Riel is the world’s tenth-weakest currency. The Cambodian Riel is the currency of this Southeast Asian monarchy. The Indochinese Piaster was replaced by this monetary unit in 1995. The Riel had a low exchange rate at first, and it was unpopular among locals who preferred to use international currencies. Many Cambodians now choose to pay in US dollars, causing the native currency to depreciate even further.
The abbreviated of Cambodian Riel is KHR and its rates are: 1 USD = 4,077 KHR
1 EUR = 4,822 KHR.
Wrapping Up:
Here is the list of top 10 lowest currency in the world. There are many more with the lowest currencies, but here are the top 10 in 2020-2021. We finally succeeded in answering the question we asked earlier that which country has the lowest currency in the world? Lowest currency in the world questions the economic stability, central bank policies and the government’s measures to stabilize it.
Moreover, we get to know that all of these countries has the lowest currency value than Pakistan. So here we can answer another question that can bump in our minds that which country has the lowest currency value than Pakistan.
