Denomination simply means a change in the nominal value of banknotes, usually after hyperinflation, to stabilize the currency and simplify calculations.
Many people know about the strongest, most stable, and powerful world currencies, for example, British Pound Sterling, Swiss Franc (Swissie), US Dollar, Euro, and others.
These Currencies are the most stable, as well as the countries issuing them.
But what of the least valued world currencies? Who can tell their names and what countries they are issued in…?
While making this list, we discovered it pretty hard to put the least valuable currencies in proper order, since the economic situation is changing rapidly in all these countries.
However, it is possible to identify certain devalued national currencies at the moment. Thus, let’s have a close look at 10 cheapest foreign currencies against the US Dollar.
The exchange rates of the least valued currencies were updated on 01 September 2020.
#1 – Venezuelan Sovereign Bolívar (319,435 VES/USD)
Venezuelan Bolivar is the lowest currency in the world.
Venezuelan Bolivar is the currency with the highest inflation rate.
Currency code – VES (Old VEF).
Venezuelan Sovereign Bolívar rates:
1 USD = 319,435 VES (US dollar to Venezuelan Sovereign Bolívar).
1 EUR = 382,848 VES (Euro to Venezuelan Sovereign Bolívar).
The second cheapest currency in the world is Venezuelan Sovereign Bolívar. It suffered significantly from inflation due to COVID19, so its value became record low in 2020. This currency is also considered the most inflated in the world.
The redenomination of the bolivar was carried out on August 20, 2018. The main reason was the hyperinflation of around 830,000%, which kept increasing day by day.
Before the redenomination, 1 USD was worth ~248,487 VEF.
Old banknotes were replaced with new ones with the rate of 1 new VES to 100,000 old VEF.
A cryptocurrency “Petro” was created by the government to “fight the US dollar”. But this only accelerated the hyperinflation rate, because the government itself determines the dollar exchange rate at their whim.
#2 – Iranian Rial (~244,000 IRR/USD)
The cheapest currency in the world is the Iranian rial.
the most worthless currency in the world is the Iranian rial.
Currency code – IRR.
Iranian rial rates:
1 USD = ~244,000 IRR (US dollar to Iranian rial – black market rate).
1 USD = 41,941 IRR (US dollar to Iranian rial – official rate).
1 EUR = ~292,250 IRR (Euro to Iranian rial – black market rate).
1 EUR = 50,242 IRR (Euro to Iranian rial).
Today, the cheapest currency in the world is Iranian Rial. Its devaluation started in 1979 after the Islamic Revolution when many businesses left the country because of the uncertain situation. Then came the Iran-Iraq War, and the economic sanctions because of the country’s nuclear program. The Iranian government also restricted access to foreign currency for their citizens, which led to the significant black market lift. All of this damaged economics and devalued the currency almost by 400%.
In 2015, the Iranian government agreed to sign the nuclear agreement with the U.S., France, UK, China, Russia, and Germany for the sanctions mitigation. It improved the situation and stabilized the local currency.
However, in 2018 the U.S. claimed that Iran proceeds its nuclear program. The sanctions were sharpened, restricting the country’s access to the world commodity markets. Iran could no longer export its petroleum, which brought about 69% of income annually. It created a critical deficit in its national budget. The sanctions also covered other industries, including petrochemistry and metallurgy.
By May 2020, Iran faced the galloping inflation, and its currency was devalued by 600%. That is why the government decided to change Rial to Toman and slash four zeroes from its face value, i.e., 10,000 old Rials will convert to 1 Toman.
#3 – Vietnamese Dong (23,170 VND/USD)
The third weakest currency in the world is the Vietnamese Dong.
The third weakest currency in the world is the Vietnamese Dong.
Currency code – VND.
Vietnamese Dong rates:
1 USD = 23,170 VND (US dollar to Vietnamese Dong).
1 EUR = 27,774 VND (Euro to Vietnamese Dong).
The Vietnamese Dong is the currency with the third-lowest value in the world.
Vietnam is still on its hard path from a centralized economy to a market one, and consequently, this country’s currency is very devalued today. At the moment, the Dong takes second place in our “poorest currencies” list.
However, experts insist that the Vietnamese government is going the right way and may soon catch up with its closer Asian neighbors.
#4 – Indonesian Rupiah (14,587 IDR/USD)
The fourth cheapest currency in the world is the Indonesian rupee.
The fourth cheapest currency in the world is the Indonesian rupee.
Currency code – IDR.
Indonesian Rupiah rates:
1 USD = 14,587 IDR (US dollar to Indonesian Rupiah).
1 EUR = 17,493 IDR (Euro to Indonesian Rupiah).
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.
Indonesia is an economically stable and quite developed country in Southeast Asia. However, its money has a very low exchange rate. The country’s regulatory authorities are taking all measures to strengthen the national currency, but all their efforts led only to insignificant changes.
#5 – Uzbek Sum (10,266 UZS/USD)
Uzbek sum
Uzbek sum
Currency code – UZS.
Uzbek Sum rates:
1 USD = 10,266 UZS (US dollar to Uzbek Sum).
1 EUR = 12,311 UZS (Euro to Uzbek Sum).
The modern Sum was put into circulation with a ratio of 1 Sum equal to 1000 Sum-coupons from July 1, 1994, by Decree of the President of Uzbekistan.
As a result of the liberalization of their monetary policy from September 5, 2017, the exchange rate of the Sum against the US dollar was set at 1 USD = 8,100 UZS, with an estimated range of 8,000-8,150 UZS for 1 US dollar.
#6 – Sierra Leonean Leone (9,889 SLL/USD)
Sierra Leone Leone – Top 5 Cheap Currencies.
Sierra Leone Leone – Top 5 Cheap Currencies.
Currency code – SLL.
Sierra Leonean Leone rates:
1 USD = 9,889 SLL (US dollar to Sierra Leonean Leone).
1 EUR = 11,854 SLL (Euro to Sierra Leonean Leone).
Sierra Leone is a very poor African country, which handled out many serious tests that caused the local money to devalue. Recently, a war took place there, and the deadly Ebola virus is recurrent.
#7 – Guinean Franc (9,661 GNF/USD)
Franc of the Republic of Guinea.
Franc of the Republic of Guinea.
Currency code – GNF.
Guinean Franc rates:
1 USD = 9,661 GNF (US dollar to Guinean Franc).
1 EUR = 11,575 GNF (Euro to Guinean Franc).
A high inflation rate, progressing poverty, and prospering gangsters devalued the currency of Guinea – the African country with one of the most inflated currencies.
Considering its natural gifts like gold, diamonds, and aluminum, this country’s currency should be one of the most valuable.
#8 – Lao or Laotian Kip (9,113 LAK/USD)
Lao kip.
Lao kip.
Currency code – LAK.
Lao or Laotian Kip rates:
1 USD = 9,113 LAK (US dollar to Lao or Laotian Kip).
1 EUR = 10,920 LAK (Euro to Lao or Laotian Kip).
The Lao is the only currency on this list, which did not devalue but was originally issued with a very low rate. Besides, since its issue in 1952, the currency did strengthen against the US Dollar and continues to improve its value.
#9 – Paraguayan Guarani (6,965 PYG/USD)
Paraguayan Guarani.
Paraguayan Guarani.
Currency code – PYG.
Paraguayan Guarani rates:
1 USD = 6,965 PYG (US dollar to Paraguayan Guarani).
1 EUR = 8,345 PYG (Euro to Paraguayan Guarani).
Paraguay is the second poorest South American country. It suffered a disastrous economic downturn, combining inflation, corruption, low education quality, an enormous number of poor people, high unemployment, etc.
Paraguay exports cotton and soybeans, but this is hardly enough to cover its economic needs.
#10 – Cambodian Riel (4,098 KHR/USD)
Cambodian riel is the top 10 cheapest currencies.
Cambodian riel is the top 10 cheapest currencies.
Currency code – KHR.
Cambodian Riel rates:
1 USD = 4,098 KHR (US dollar to Cambodian Riel).
1 EUR = 4,910 KHR (Euro to Cambodian Riel).
In tenth place the weakest currency in the world is Cambodian Riel. The Cambodian Riel is the currency of this Monarch State in Southeast Asia.
This monetary unit was issued in 1995 to replace the Indochinese Piaster. Originally, the Riel had a low exchange rate and was not popular among locals who had decided to use foreign currencies.
Many Cambodians prefer to use the US dollar for payments now, which causes the local currency to devalue even more.
Ghanaian are thankful for the President and his Vice that our currency is stable for the economy to grow well.
Source; opera news
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