Top 10 Weakest Currencies In The World In 2024 (2024)

Many people think of the strongest currencies in the world, and the U.S. dollar is the most popular currency that pops into their minds. Well, it should, too, as it is one of the most exchanged currencies in the world. But to everyone’s surprise, the U.S. dollar isn’t the strongest currency; instead, it is the Kuwaiti Dinar (KWD).

But, can you imagine a country where your INR 2,000 can make you a millionaire or INR 500 can be worth somewhere in lakh? Or about countries where vacationing won’t be a money matter.

Let’s get into the details of the cheapest currencies compared to Indian rupees in the world that can make you feel rich.

Top 10 Cheapest Currencies In The World As Of May 2024

10 Lowest Currency In The World

1. Iranian Rial (IRR) 1 INR = 504.04 IRR

The Iranian rial is the cheapest currency in the world. The fall in its value can be explained by various factors. First, the termination of the Islamic Revolution in 1979 was followed by foreign investors’ withdrawal from the country. The nuclear program and the Iran-Iraq war also played a huge part, causing financial distress and other political unrest in Iran.

2. Vietnamese Dong (VND) 1 INR = 301 VND

The country has long followed a centralized economy. Although the country embarked on a path of forming a market economy, it still has a long road to walk. The currency is highly devalued currently but the chances are high of the currency improving considering the improvement in the economy.

3. Sierra Leonean Leone (SLL) 1 INR = 277 SLL

Sierra Leonean Leone is an African currency that is highly affected by poverty. Africa has had a history of financial scandals, corruption and conflicts including a heinous civil war in the western African region. All these led to a downfall of the country’s economy and the value of its currency. The Ebola infection added to Sierra Leonean’s woes, and is a constant factor that affects the country’s population that further consumes financial aid.

4. Lao or Laotian Kip (LAK) 1 INR = 256 LAK

The Lao or Laotian Kip is not a devalued currency but one that has had a low rate since its introduction in 1952. Over the years, the value of the currency has improved. Also, a railway is planned that will connect Beijing to Laos, which might draw investors to this small country. Although it is the cheapest currency, it is a promising one for improving its value.

In the last seven years, the currency has not improved even more. The factors that have contributed to its devaluation include its decreasing foreign exchange reserves. Indonesia is heavily dependent on the export market, and with the fall in the cost of commodities, the currency value has further devalued.

Read more: 11 Cheapest European Country To Visit From India 2024

5. Indonesian Rupiah (IDR) 1 INR = 191.96 IDR

In the last seven years, the currency has not improved even more. The factors that have contributed to its devaluation include its decreasing foreign exchange reserves. Indonesia is heavily dependent on the export market, and with the fall in the cost of commodities, the currency value has further devalued.

6. Uzbekistani Som (UZS) 1 INR = 152.45 UZS

The government of Uzbekistan has employed many means to improve the country’s economy, but none of them have proved successful. The most recent one is the reformatory measure, so the changes that these measures will bring in terms of currency value have yet to be explored.

The Covid-19 pandemic had an impact on the country’s economy, though the data suggests that Uzbekistan resumed its internal operations in the third quarter of 2022. However, the decrease in industrial output has increased the currency’s future unpredictability.

7. Guinean Franc (GNF) 1 INR = 102 GNF

Guinea faces corruption and political instability, which leads to a weakened currency. The country’s currency value is devaluing by the passing years.

8. Paraguayan Guarani (PYG) 1 INR = 89 PYG

The Paraguayan economy is experiencing a terrible economic downturn due to high inflation, a high unemployment rate, an increase in poverty, and corruption. These factors have a negative impact on the currency’s value.

9. Cambodian Riel (KHR) 1 INR = 48.64 KHR

Tourism and agriculture are Cambodia’s most significant income streams. The country has a dual-currency system, with US dollars also valid as legal tender. Dollars are standard in urban areas and tourist hotspots, so the Cambodian riel is frequently used in remote areas.

To stop this, the National Bank of Cambodia stated in 2020 that it would eliminate the extensive distribution of one, two, and five-dollar notes in an attempt to cut back, but primarily to increase the demand for the riel, which has suffered from depreciation.

10. Ugandan Shilling (USH) 1 INR = 45 UGX

Uganda faced several setbacks under Idi Amin’s governance. The president’s policies have negatively impacted the country’s economy, including immigration policies. These impacts still affect the country’s development. However, the last few years witnessed improvement in its value but not more than a 5% devaluation.

How are Overseas Currencies Priced?

Foreign or overseas currency is always traded in pairs. For instance, Indian rupees can be bought with Vietnamese dong or Indian rupees with Iraqi dinar. As a result, currencies are always priced relative to another currency, known as the exchange rate.

There are floating currencies, which means some values of the currencies vary depending on their demand and supply and some currencies are pegged which means that their value is stable at an agreed rate.

The exchange rate affects the pricing of goods and services in a foreign currency. For instance, if the Indonesian rupiah weakens against the rupee, a holiday in India would cost more in rupiah terms.

Factors That Can Affect The Exchange Rates Of Weakest Currencies

The foreign exchange rate is an essential thing to determine a country’s economic health. The value of the currency depends on it. Let us see the important factors that impact the value of the currencies.

Inflation Rate

Market inflation may impact currency exchange rates. The price of goods and services will gradually rise steadily when inflation is low. When the inflation rate declines steadily, the currency value increases and vice versa.

Recession

Recession affects the country’s economic growth then the foreign exchange market makes no exception to it. During the recession, the interest rates will fall. Foreign capital would be devalued as a result of this. The value of the currency drops when foreign capital is scant and the interest rates are low.

Interest Rate

The higher the interest rate means the value of the currency will go down. It is again an important factor that can affect the exchange rate.

Government Debt

Government debt or public debt is government-owned debt and is a public liability. If one country is facing debt, the chances of having more money are slight with the potential of causing inflation. The foreign investors would be in two minds about investing considering the high inflation which in return would depreciate the value of the currency.

Political Instability

The lack of stability in the government will harm the country’s economic performance as a result the investors will not profit from it. A stable administration attracts many foreign investors. The domestic currency value might be increased by the investment in addition to boosting foreign capital.

Let us see the table below to understand the currency values as per Indian rupees as of March 2024.