In most cases, a state’s currency devalues because of the economic downturn inside a country. Considering its natural gifts like gold, diamonds, and aluminum, this country’s currency should be one of the most valuable. In 2015, Iran’s government reached an agreement on nuclear issues with several countries, including the U.S., France, UK, China, Russia, and Germany.
Meanwhile, the central bank in the country experiencing inflation may raise interest rates to mitigate the effect of rising prices, which could also counteract and strengthen the currency. Inflation is closely related to interest rates, which can influence exchange rates. Countries try to balance the two, but their relationship is complex and often difficult to manage. Low interest rates spur consumer spending and economic growth and generally positively influence currency value.
- He was one of the first traders accepted into the Axi Select program which identifies highly talented traders and assists them with professional development.
- Indonesia is an economically stable and quite developed country in Southeast Asia.
- The country has its vibrant local markets and the historic sites of Freetown to offer in addition to the pristine beaches and wildlife sanctuaries.
- Laos remains one of the poorest countries in Southeast Asia, and off the back of the Covid-19 pandemic, was struck by an economic crisis, which caused the kip to undergo massive inflation.
- The Turkish lira is one of the worst-performing currencies in the region due to high inflation rates and a large current account deficit.
- The Gibraltar pound or GIP is the national currency of Gibraltar and is exchangeable with the British pound sterling at face value.
- An important point here is the exchange rate pass-through, which determines how much consumer prices will go up or down when the relative values of currencies shift.
What are the strongest currencies in the world?
The JPY is considered one of the world’s most stable currencies but a relatively cheap one. The Japanese yen has been under pressure due to the country’s ageing population and slow economic growth. This began in 1979 following the Islamic Revolution, a time when numerous businesses abandoned Iran due to political instability.
Top 10 Lowest Valued World Currencies in 2025
Visit our forex trading page for more details on the 330+ currency pairs you can trade with us. One of the newest currencies, the Euro or EUR is the official currency of 19 countries, which makes it the most widely used ‘official currency’ in the world. Countries where it is used as an official currency include Germany, France and Spain, and it is often known to be the world’s second reserve currency.
Top 10 Lowest Valued Currencies Compared to the Indian Rupee (INR) in 2024
Such knowledge not only informs financial decisions but also fosters a deeper comprehension of global economic interdependencies. With a freely convertible currency, domestic firms will have to compete fiercely with their foreign counterparts. The development of competition among them will affect the implementation effect of currency convertibility. 1 US dollar is transferrable for around 0.71 Jordanian Dinar, earning the currency a rightful place in the top 5 most valuable currencies. The 7th most expensive currency in the world is the Cayman Islands dollar or KYD, which is the national currency for the Cayman Islands.
- Finding the right forex broker before starting your trading journey is the first crucial decision you will have to make.
- You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
- By June 2020, the rial had fallen by more than five times what it was in 2018, which many attribute to the government printing too much money.
- Thanks to this advantageous exchange rate, travelers can afford to take advantage of excellent coffee excursions, discover vibrant districts, and unwind on breathtaking coasts.
- Monetary authorities have varying degrees of autonomy from the governments that create them.
- It was pegged to the US dollar from 1958 to 1972 and was replaced twice in 1972 and 1979 to try and stabilise the currency.
Comorian Franc (KMF)
In recent years, however, the country has shown significant improvements by opening up the country and has made several impactful economic reforms. Entering circulation in 1932, replacing the Indian rupee, the Iraqi dinar was pegged to the British pound until 1959, when this switched to the US dollar. In recent history, the most extreme example of hyperinflation can be seen in Zimbabwe. The inflation rate reached 89.7 sextillion percent (89,700,000,000,000,000,000,000%) and its central bank had to issue a banknote with a denomination of 100 trillion. Eventually, Zimbabwe was forced to abandon its currency and replace it with the US dollar. Uzbekistan’s economic growth has been improving after a series of reforms in the mid-2010s.
Black markets typically emerge when the trust in the local currency and the exchange rate set by the government is diminished. The local currency is traded at different rates than set by the government, and those can vary significantly at times. Rampant inflation, political instability, wars, economic sanctions, lack of foreign investment, high trade deficit, and lack of economic diversification are some of the main reasons. Before diving into the list, it’s essential to understand that currency value is influenced by numerous factors including political stability, inflation rates, and economic policies. A lower currency value doesn’t necessarily indicate a poor economy but often highlights specific economic challenges or strategies.
Information is of a general nature only and does not consider your financial objectives, needs or personal circumstances. Important legal documents in relation to our products and services are available on our website. You should read and understand these documents before applying for any AxiTrader products or services and obtain independent professional advice as necessary. It has been prepared without taking your objectives, financial situation and needs into account. Any references to past performance and forecasts are not reliable indicators of future results. Axi makes no representation and assumes no liability with regard to the accuracy and completeness of the content in this publication.
Congolese Franc (CDF)
When the value of a currency fluctuates, it can lead to either an increase or decrease in the cost of foreign goods for domestic consumers or businesses. The extent of this pass-through depends on market competition, supply chain costs, and the pricing strategies of the companies involved. Australia is a major exporter of commodities such as iron ore, coal, and natural gas, so the AUD is highly sensitive to shifts in commodity prices, inflation, and global demand.
The country’s regulatory authorities are taking all measures to strengthen the national currency, but all their efforts led only to insignificant changes. Due to the economic instability and the weak exchange rate, Sierra Leone has one of the weakest currencies in the world. This drop can be influenced by high inflation, political instability, or low foreign investment. In the end, as was the case in the early 2020s, the fact that exchange rates are relative could mean only small changes in exchange rates might tell you little about inflation. That is because when all currencies rise, their rates will remain stable compared with one another.
As of weakest currency in the world to inr today, the Colombian peso has devalued about 3,000 times since its release. Paraguay exports cotton and soybeans, but this is hardly enough to cover its economic needs. The currency has since stabilised, but the shocks of this economic downturn are still felt. Comoros (three independent islands in Southeastern Africa) has a population of almost 930,000. Despite this, the country is suffering from high population densities, which has been suggested may cause an environmental crisis in the near future. Finding the right forex broker before starting your trading journey is the first crucial decision you will have to make.
The landlocked country of Burundi is kept behind economically due to the fact that it is almost entirely agricultural, with barely any industrialisation. Food production is strong in the country, but civil unrest and overpopulation have contributed in recent years to a contraction of the subsistence economy by 25%. The Somali shilling is a weak currency, but this may be about to change, and in a few years, it may not even be on this list. Exotic forex pairs can provide you with an opportunity to diversify your trading.
