There are many countries in the world whose currency is very weak against the US dollar. Most of the world’s currency has always been weaker than the US dollar. However, the US dollar has also weakened against the British pound. But there are many countries in the world whose currency is very weak. In this article, we will know Which is the cheapest currency in the world in 2022 and how much is their price against the dollar.
Which is the Cheapest Currency in the World
1. Iranian Rial (IRR) – The Iranian Rial is currently listed as the cheapest currency in the world. The decline in currency value can be explained by several factors. To begin with, there was a withdrawal of foreign investors from the country after the end of the Islamic Revolution in 1979. This led to the devaluation of the currency. The Iran–Iraq War, as well as the country’s nuclear power programs, incur huge financial expenses.
The government’s decision to restrict foreign exchange in the country pushed the black market to a critical level. The withdrawal of the nuclear deal with Iran by the US government in 2018 severely affected Iran’s export market, resulting in the currency’s current devaluation of 600 percent. This is the reason why the cheapest currency in the world is the Iranian Rial.
Price – 1 USD = 42350 IRR
2 Vietnamese Dong (VND) – The second cheapest currency in the world is the Vietnamese dong. Vietnam is still on its difficult path from a centralized economy to a market, and as a result, this country’s currency is greatly devalued today. At the moment, the dong ranks third on our list of the poorest currencies. However, experts say the Vietnamese government is on the right track and may soon catch up with its close Asian neighbours.
Price – 1 USD= 22901 VND
3. Indonesian Rupiah (IDR) – It is another underperforming currency in the world. There has been no improvement in the currency in the last 7 years. Its devaluation is attributed to several factors, including its depleting foreign exchange reserves due to the failure of the central bank to protect the currency. Indonesia depends heavily on its export market for commodities. And with the fall in commodity prices, the currency has seen a further decline in value.
Foreign investors hold 35-40 per cent of Rupiah sovereign bonds, which has weakened capital inflows. To strengthen the country’s economy, the government has taken several measures such as reducing taxes, promoting tourism and relaxing the rules applicable to foreign workers.
Price – 1 USD = 14366 IDR
4. Sierra Leonean Leone (SSL) – Sierra Leone is a very poor African country, which has handled several severe trials that led to the devaluation of local wealth. It is an African country that is severely affected by poverty. The exchange rate of 1 USD for Sierra Leonean Leone or SLL is 12354. The country has a history of corruption and scams. It has also seen a heinous civil war along with several other conflicts in West African countries.
All these have led to a decline in the value of the country’s economy and currency. Limiting the country’s export market to diamonds does not leave much room for improvement in the economy. In addition to these, Ebola virus is an infection that continues to affect the population, making financial support further dwindling.
Price – 1 USD = 12354 SLL
5. Lao or Laotian Kip (LAK) – The Lao is the only currency on this list that was not devalued, but was originally issued with a much lower rate. Furthermore, since its release in 1952, the currency has strengthened against the US dollar and continues to improve in value.
Interestingly, the Lao is not actually a currency that has been devalued, but a currency that has been following a low rate since its introduction in 1952. It takes approximately 11,988 Laotian Kip or LAK to buy 1 USD. On the bright side, the currency’s value has improved over the years.
A $7 billion railway plan to connect Beijing with Laos is expected to attract a pool of investors to the small country. Thus, the country’s currency appears to be a promising one, although it is currently listed among the least valuable currencies.
Price – 1 USD = 11988 LAK
Also Read –