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Most people are aware of the strongest, most stable and powerful currencies in the world: dollars, euros, pounds and Swiss francs. These currencies are the most stable, as are the countries that issue them. However, what about the world’s least valuable currencies? Who knows their names and in which countries they are produced?
A low exchange rate can be the result of various economic downturns, such as military action, a decline in GDP, falling prices for goods that make up the majority of exports, a fall in purchasing power, tight credit conditions, instability of domestic politics, etc.
Currency depreciation is often associated with poorly organized monetary policy and tax control decisions (Central banking system).
In compiling this list, we found that it is definitely difficult to tidy up the least valuable currencies due to the fact that in all these countries the economic situation is changing rapidly. As this post further clarifies to you the value of your country’s currency, we’re sure you’ve now realized that what appears to be a phantom in one country can be rubble (or any useless object you might mention) in another country.
However, at the moment it is possible to identify some depreciated national currencies. So, let’s look at the 10 cheapest foreign currencies (the cost is indicated in relation to the ruble).
10 She, 0,05 r
Won is the official currency used in North Korea. The North Korean won is made up of 100 subunits known as chon. The won was introduced in 1947 and replaced the Korean yen.
The won is exclusively used by locals with foreign visitors. Years of foreign sanctions and poor leadership have led to high inflation in the economy, which has eroded the value of the gain, forcing the Central Bank of the Democratic People’s Republic of Korea to issue banknotes up to 5000 won.
9. Kyat, 0,04 p
Myanmar is located in mainland Southeast Asia. In 1989, the ruling military government changed the name of the country to Myanmar instead of Burma. However, the adjective description is still Burmese, not Myanmarese.
Kyat is the official currency of Myanmar. It consists of 100 coins, which are quite limited in use throughout the country. The first kyat was issued in the form of gold and silver coins before 1889. But the Indian rupee was established as the national currency when the British conquered the country in 1942.
The kyat currency was reintroduced to replace the rupee in 1943, but the rupee returned to circulation again until 1952, when the current Myanmar kyat was introduced into the Burmese economy.
8. Cambodian riel, 0,016 r
Cambodian riel is the currency of a monarch state in Southeast Asia. The popular belief is that the name of the currency comes from the fish of the Mekong River, riel (“small fish” in Khmer). It is more likely that the name comes from the Mexican high-silver coins used by Malay, Indian and Chinese merchants in mid-19th century Cambodia.
KHR has a low exchange rate and is very unpopular, which is why much of Cambodia prefers the dollar.
7. Uzbek sum, 0,01 r
In the Soviet Union, Kazakh, Kyrgyz, and Uzbek speakers called the ruble the som, and the name appeared on the back of banknotes, among the texts for determining the value of the bill in all 15 official languages of the Union.
The country created its own national currency – Uzbek sum, which is still falling in price. High taxes, inflation, corruption and political restrictions have led to a significant reduction in the price of this currency on the world market.
6. Guarani, 0,01 p
Paraguay is the second poorest country in South America. It is characterized by what can be called a catastrophic economic downturn. The country has been the victim of terrible economic failures, catastrophic inflation, rampant corruption, poor education, and high unemployment.
Due to the low level of economic development that prevails in this country, the value of the Paraguayan guarani suffers greatly. The country is an exporter of soybeans and cotton. However, the income generated from these exports is barely sufficient to cover the high cost of its imports. As a result, the Paraguayan Guarani is one of the cheapest currencies in the world.
5. Laotian kip, 0,008 rub
The only currency on the list of the cheapest currency in the world that has not depreciated is Laotian kip. As the only currency that was originally introduced at a very low rate, this currency has suffered from a very low exchange rate for many years.
Since 1952, the year of its issue, the Laotian kip has failed to appreciate against the value of the dollar. Despite this fact, the value of this currency continues to gradually improve.
4. Guinean franc, 0,007 r
Guinea, an African country with high inflation, growing poverty and a prevalence of gangsters, has long suffered from the devaluation of the national currency.
The most amazing aspects of this state are the natural treasures such as precious metals and diamonds that are found in abundance here. With all these resources Guinean franc must be very valuable. Unfortunately, this is not the case.
3. Rupee, 0,005 p
Due to the low cost of old-style banknotes, by presidential decree of September 5, 2016, 7 new banknotes were issued in denominations from 1 to 100 thousand Rs.
Indonesia is an economically stable and fairly developed country in Southeast Asia. However, her money has an extremely low exchange rate. The country’s authorities are making efforts to strengthen the national currency, but all their efforts have led to only minor changes.
2. Vietnamese dong, 0,003 rub
The second most depreciated world currency – Vietnamese dong. Vietnam is still on its way to complete transition from a centralized economic system to a market economy. As a result, the Vietnamese Dong is the currency that is worth the least.
Extremely devalued relative to other world currencies, it has one of the lowest exchange rates in any country except Iran. However, currency experts assure that Vietnam’s economic policy is on the right path to growth and will soon catch up with its neighbors. Soon, the Vietnamese dong may not even be in the ranking of the cheapest currency in the world.
1. Iranian rial, 0,0016 r
Iranian rial officially the least valuable currency in the world. To simplify calculations, citizens often use the term Toman, which means 10 rials. If you are asked to pay 200 tomans, it means that your bill is 2000 rials.
The Iran-Iraq war, threats to Israel, and the possibility that nuclear missiles threaten the world from the Iranian government have led the world’s superpowers to impose economic and political sanctions. These measures included restricting Iran’s access to the global commodity market and led to a significant downturn in their economy.
As an oil exporter, Iran could no longer export its oil, which created a critical deficit in their national budget. All this has led to the fact that the Iranian rial has become the “worst” world currency.
In 2016, the US and EU lifted a number of sanctions, improving the economic situation and stabilizing local money, but in 2018 the US reintroduced and tightened its sanctions.