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Lowest currency in the world. What is the cheapest currency in the world?

These currencies are leading, or rather the countries that issue them.

Surely most of the readers immediately remembered the Belarusian ruble and its disproportionately low exchange rate. However, as it turned out, the ruble of the Republic of Belarus is far from the cheapest currency in the world. In addition, since July 1, 2016, the currency of Belarus went through another redenomination, after which it reduced the three zeros and began to look less deplorable.

The list of the cheapest currencies changes daily and it is quite difficult to establish definitely who is now leading among the cheapest world currencies, since the economic situation in countries, and throughout the world, is changing dramatically.

However, a certain sequence and list of devalued national currencies can be identified, so let’s look at the 10 cheapest currencies in the world in relation to the ruble and dollar.

The rate was fixed at the time of writing 11.01.2019 .

#1 – Iranian Rial (1 USD = ~112,000 IRR)

Currency code – IRR

1 USD = ~112,000 IRR(black market)
1 USD = 41,994 IRR(official rate)
1 RUB = 629 IRR

The Iran-Iraq War, attacks on Israel, and the threat of nuclear weapons to literally the entire world from the Iranian government led to the imposition of a number of restrictive economic and political sanctions on the country by the world's superpowers. These measures, in particular, restricting access to the world commodity market, led to a significant deterioration in the economic situation in the country.

Iran, being an oil country, was no longer able to supply its goods to the world stage, as a result of which it received a significant budget deficit.

For these reasons, the Iranian rial today is cheapest currency in the world.

Since 2016, the US and EU have been alternately lifting some sanctions against Iran, which should lead to an improvement in the economic situation and possibly stabilization of the national currency.

#2 – Vietnamese Dong (Vietnamese Dong) (23,196 VND/USD)

Currency code – VND

1 USD= 23,196 VND
1 RUB= 346 VND

The second weakest currency in the world is the Vietnamese Dong.

Vietnam is going through a difficult stage of restructuring from a centralized economy to a market economy, so at the moment the country's currency is practically worthless.

Experts say the Vietnamese government is on the right track and could soon catch up with its closest Asian neighbors.

#3 – Indonesian Rupiah (14,237 IDR/USD)

Currency code – IDR

1 USD = 14,237 IDR
1 RUB = 208 IDR

Indonesia is an economically stable and developed country in Southeast Asia, however, the country's currency has a very low value. The country's regulatory authorities are taking all measures to strengthen the national currency, but at the moment these attempts are leading to only minor changes.

#4 – Guinean Franc (9,098 GNF/USD)

Currency code – GNF

1 USD = 9,098 GNF
1 RUB = 135 GNF

Due to high inflation, progressive poverty and thriving banditry, the currency of the African country of Guinea has a very low exchange value.

Given the rich natural gifts of gold, diamonds and aluminum, the currency of a given country should have a much higher value.

#5 – Lao or Laotian Kip (8,534 LAK/USD)

Currency code – LAK

1 USD = 8,534 LAK
1 RUB = 127 LAK

The Laotian Kip is the only currency on this list that has not been devalued, but was originally issued with a significantly low value. In addition, since its release in 1952, the currency has even strengthened against the dollar and continues to improve its performance to this day.

#6 – Sierra Leonean Leone (8,458 SLL/USD)

Currency code – SLL

1 USD = 8,458 SLL
1 RUB = 126 SLL

Sierra Leone is a very poor country in Africa that has experienced many serious trials, which has affected the value of the local currency. Recently, there was a war in the state, and recently the deadly Ebola fever dominated the country.

#7 – Uzbek Sum (Uzbek Sym) (8,336 UZS/USD)

Currency code – UZS

1 USD = 8,336 UZS
1 RUB = 125 UZS

By decree of the President of the Republic of Uzbekistan, on July 1, 1994, a modern soum was introduced into circulation with a ratio of 1 soum to 1000 soum coupons.

As a result of the liberalization of monetary policy, from September 5, 2017, the exchange rate of the soum against the US dollar was set at 1 US dollar = 8100 soums with an estimated range of 8000-8150 soums per 1 US dollar.

#8 – Paraguayan Guarani (5,950 PYG/USD)

Currency code – PYG

1 USD = 5,950 PYG
1 RUB = 76 PYG

The second poorest South American country, Paraguay, is in a catastrophic economic situation - inflation, corruption, low education, a huge number of people living below the poverty line, lack of jobs, etc.

Paraguay exports cotton and soybeans, but this is hardly enough to feed the country.

#9 – Cambodian Riel (4,005 KHR/USD)

Currency code – KHR

1 USD = 4,005 KHR
1 RUB = 59 KHR

The Cambodian riel is the currency of the monarchical state of Cambodia in Southeast Asia. The currency was introduced in 1955 to replace the Indochinese piastre. The riel was initially a low-value currency and was not popular even with local residents who decided to prefer foreign currencies.

Most Cambodians today prefer to use the American dollar as their payment currency, which further worsens the position of the national currency.

10 – Ugandan shilling (3,714 UGX/USD)

Currency code – UGX

1 USD = 3,714 UGX
1 RUB = 56 UGX

In 1966, the Ugandan shilling first appeared and replaced the East African shilling. The latter was the official means of payment in Kenya, Uganda, Tanganyika and Zanzibar.

The following banknotes are in circulation: 1,000, 2,000, 5,000, 10,000, 20,000 and 50,000.

The Ugandan shilling is a relatively stable currency. Over the past few years, its value has decreased by no more than 5%.

Currencies that have undergone denomination

Redenomination is a change in the face value of banknotes, usually after hyperinflation, to stabilize the currency and simplify payments.

During redenomination, old banknotes are exchanged for new ones, which, as a rule, have a lower denomination.

Due to this, some currencies left the above list.

Venezuelan Bolivar

Currency code – VES (old code – VEF)

1 USD = ~248,487 VEF(before denomination)

The Venezuelan Bolivar is the currency with the highest inflation rate.

The denomination took place on August 20, 2018. The main reason for the redenomination was hyperinflation of about 830,000%. Old banknotes were replaced with new ones at a ratio of 1 new VES to 100,000 old VEF.

Sao Tomean Dobra

Currency code – STD

1 USD = 22,691 STD(before denomination)

On January 1, 2018, a denomination was carried out in the country: 1000 old good (STD) were equal to one new (STN).

Two small islands in western Africa - Sant Tome and Principe - are mainly engaged in the supply of cocoa, coffee and coconuts, which is clearly not enough to maintain the country's economy at the proper level.

Oil fields have recently been discovered on the island of Sao Tome, so perhaps Dobra will soon be able to strengthen significantly.

Belarusian Ruble

Currency code – BYR

1 USD = 20,846 BYR(before denomination)

After the denomination on July 1 in Belarus, until the end of 2016, banknotes of the 2000 and 2009 samples were in parallel circulation and were mandatory for acceptance when making all types of payments without restrictions. Since the beginning of 2017, Belarus has completely switched to new banknotes.

In Belarus, the procedure for exchanging old-style banknotes has been determined. Old money can be exchanged for new ones at the National Bank, banks and non-bank financial institutions of the Republic of Belarus from January 1, 2017 to December 31, 2019 inclusive.

From July 1, 2020 to December 31, 2021 inclusive, banknotes will be exchanged only at the National Bank of the Republic of Belarus.

Why are currencies falling in price?

In most cases, government currencies become cheaper due to the difficult economic situation in the country. This leads to increased inflation and balance of payments deficits.

This may be a consequence of various unfavorable situations for the country’s economy, such as: military operations, a decrease in GDP, depreciation of raw materials that served as the basis for exports, a drop in the purchasing power of the population, tightening of credit programs, political instability in the country, etc.

Devaluation (currency depreciation) is often associated with improperly organized monetary policy of the country's leadership and corresponding decisions of regulatory bodies (national banks).

Each country has its own national currency in circulation. The list of currencies of the countries of the world is very wide. However, it can be divided into several main groups. So, for example, there is the currency of European countries, African countries, countries of North and South America, as well as Asian countries, Australia and Oceania. In addition, the list of world currencies can be divided into two categories: the most expensive and the cheapest monetary units.

What affects the value of a currency

One of the most important indicators affecting the value of a currency is the presence of a strong and well-developed economy. It must inspire confidence among partners and investors who will invest in government securities. In addition, the availability of minerals and their export by the country has a great influence.

If you carefully study the rating list of currencies of the countries of the world, you will see that the most powerful and expensive are the banknotes of the Arab Peninsula. But, despite this, this currency is of little interest to other countries. This is due to the fact that it directly depends on oil. And this natural resource may run out at a certain time. Accordingly, the income of the exporting country will also fall.

Why is the price of currency falling?

The currency of Vietnam is the dong. The name of this monetary unit is translated as “copper” or “bronze”. But, despite this name, the banknotes themselves are made of special water-repellent paper. This makes them more wear-resistant.

The dobra should be placed in third place on this list of world currencies. The dobra is the currency used in circulation in the Democratic Republic of Sao Tome and Principe. The economy of this state is based on tourism and the cultivation of coffee and cocoa.

In fourth position is the familiar Belarusian ruble. It is often called a “bunny”.

The fifth position in the list of the cheapest currencies in the world is occupied by the rupiah, which is used in Indonesia. In the local dialect, the currency is called "perak". But its official name was taken from

Freely convertible currencies

Some of the most popular currencies accepted for circulation all over the world are the dollar and the euro. But, despite all its popularity, these monetary units are approximately in the middle of the list of the most expensive banknotes in the world. At the same time, the euro is slightly ahead of its counterpart in terms of conversion.

These currencies are reserve currencies for the whole world, thanks to the most stable and developed economies of their countries.

A complete list of the names of the currencies of the world can be found on the official websites of companies that are engaged in the purchase/sale, as well as currency exchange.

As is known, money is a specific, maximally liquid commodity, which, in turn, acts as a universal equivalent of the cost of other goods and services. Today there are about 180 currencies in the world. These are monetary units with different purchasing powers and different exchange rates.

The question: what is the cheapest currency in the world is of interest to us rather as a statistical indicator. That is, no matter how much this or that paper unit depreciates, in general, in any case, its value will always be within a certain range.

However, if for some reason there is inflation of a currency, then it is very likely that cheaper money will become much more valuable. At the same time, all this does not apply to the cheapest currency in the world, since it itself is at the very end of the ranking.

A little history

It is easy to understand that money is a very changeable commodity, which, in turn, has been constantly changing throughout its existence, and right up to the present day. At the same time, each editing of money concerned both the value and appearance of the currency, and its significance.

Finding out how and when money appeared will be useful to all people working in financial fields. This, in conclusion, will make it possible to understand what the weakest monetary unit in the world is.

1944

From the time people began actively printing paper (and metal, but not precious metals) money until 1944, the “gold standard” was used to value currencies. In 1944, in Bretton Woods (a resort town in the USA), the “gold standard” system resigned and was replaced by a new system that equated the US dollar to gold, which made American money an international means of payment.

In addition, based on the Bretton Woods agreements, international financial institutions were established:

IBRD - International Bank for Reconstruction and Development;
IMF - International Monetary Fund.

These financial enterprises operate successfully today. The only thing that has changed is that these two institutions have become even more important for the global sphere of finance, since in the modern world money solves literally any problem. We can say that it was the Bretton Woods agreements that formed the basis of the global financial market.

1978

In 1978, the second amendment to the Bretton Woods agreements was adopted, which legalized the regime of floating exchange rates. From this moment on, rates are formed exclusively by the market and are not directly linked to gold or any other means of payment.

Of course, when assessing the value of any monetary unit, the gold and foreign exchange reserves of the state are taken into account.

The floating exchange rate regime has somewhat complicated the calculation and, even more so, forecasting of exchange rates.

If you look at the financial state of each individual state, especially the large countries of the world, it becomes clear that due to the domestic currency used, some countries have a smaller budget than others. At the same time, each monetary unit has its own value rate, which increases or decreases in relation to the US dollar due to certain factors.

Today

To date, the situation with exchange rates in the world has not changed radically. In every civilized state, the entire budget has a unique value, corresponding to the dollar.

The only possible change is possible, according to forecasts, in 2017, when a truly large-scale collapse of the dollar occurs. In this regard, the value of other currencies, including the Russian ruble, will significantly increase.

It is extremely difficult to say for sure what the cheapest currency in the world will be at the moment. However, now you can easily find the top 10 cheapest currencies in the whole world on the Internet.

Rating – 10 cheapest

In order to understand what a particular monetary unit is, it is recommended that you familiarize yourself with the top 10 cheapest currencies from around the world. By the way, you should not be surprised that in this top you most likely will not find money that is widely known to you, for example, the ruble or dollar, since these units have an increased value, unlike those presented.

Rial;
Dong;
Dobra Sao Tome and Principe;
Rupee;
Ruble (Belarusian);
Franc;
Guarani;
Tugrik;
Shilling.

Each currency is tied to a specific country and has unique features, regardless of cost.

When getting acquainted with this top, do not forget that the cost of each named currency unit is extremely relative. That is, at the time you read the article, the value of a particular hard currency may change beyond recognition. And although it is almost impossible to increase the value of any money from this top, this should not be translated into an absolute.

Iranian rial (IRR)

It is strange to see a Middle Eastern currency on the list of the cheapest money in the world. Its neighbors are the monetary units of such states as:

Kuwait;
Bahrain.

These hard currency currency are at the top of the world list of expensive money. Iranian rial is the cheapest money. This is one of the most ancient monetary units on the planet.

Issued into circulation in 1798 as the national currency of Persia, since 1932 - the main money of Iran. The main reason for such cheapness of the national hard currency is the fact that Iran makes all payments for exported oil in US dollars.

1 Russian ruble costs 752 rials.

Vietnamese dong (VND)

The name itself means “Copper”. It was put into circulation in 1978, after the unification of South and North Vietnam.

Today 1 dong costs 0.0016 Russian rubles. One ruble can buy 625 dong.

The average Russian pensioner is a Vietnamese millionaire. This value of the currency is explained, first of all, by the weakness of the Vietnamese economy, which only stabilized and began to develop in the last decade.

Dobra Sao Tome and Principe (STD)

This Central African country is a leading supplier of coconuts and coffee. The national currency was put into circulation in 1977.

Good rate = 0.00189 rubles, i.e. 1 ruble=529 STD

Indonesian Rupiah (IDR)

Indonesia is the largest Muslim country. The island of Bali has long been a favorite holiday destination for tourists from all over the world. Such a rapid development of the tourism business in Indonesia is, not least, explained by the weakness of the national currency.

1 ruble = 340 rupees.

Laotian kip (LAK)

It was introduced into circulation in 1955.

1 ruble = 238 Kip.

Belarusian ruble (BYR)

It was introduced into circulation after the collapse of the Soviet Union and today is the cheapest currency of the republics of the former USSR. The Belarusian monetary unit is highly dependent on its “big brother” the Russian ruble.

1 Russian ruble is equal to 300 Belarusian rubles.

Guinean franc (GNF).

Another “misunderstanding” is this list. Diamonds and gold are mined in the country, and money is one of the cheapest in the world. As in the case of the Iranian currency, this is explained by the fact that the national hard currency is practically not used in international payments.

Today, 1 Russian ruble costs 204 Guinean francs.

Paraguayan Guarani (PIG)

Paraguayan money is naturally on the list of the cheapest currencies in the world. Paraguay's economy has been in a state of depression for a long time. It has one of the highest rates of unemployment and poverty in the world.

1 Russian ruble costs 125 guarani.

Mongolian Tugrik (MNT)

Translated as “circle” or “coin”. In circulation since 1925.

Today the Russian ruble is worth 53 tugriks

Somali Shilling (SOS)

It is symbolic that even the abbreviation of the Somali currency is associated with a maritime disaster. Long gone are the times when privateering significantly strengthened the economy of a pirate state.

The Somalis were several centuries late and therefore today their currency is cheap and extremely unstable.

The Russian ruble is worth up to 15 Somali shillings.

Conclusion

A cheap currency is typical for economies that do not demonstrate dynamic growth and, moreover, have one distinct specialization. Eg:

Iran is an oil-producing (not even oil-refining) industry;
Indonesia - tourism.

Also, the low value of a currency often indicates that this monetary unit is in little demand on the world market. This means that the external economic activity of such a country is served by the hard currency of another state. Most often this is the US dollar, which until recently was the only currency used to pay for oil and petroleum products.

It is difficult to unambiguously answer the question of what a monetary unit should be - expensive or cheap. Even tracing a clear relationship between the value of a currency and the state of the economy is not easy. For example, the most dynamically and systematically developing economies are based on hard currency in the middle price segment (i.e., not the most expensive and not the cheapest). At the same time, the currencies of the two leaders in global oil exports are at opposite poles of the rating:

The Iranian rial is the cheapest currency;
The Kuwaiti dinar is the most expensive hard currency against the dollar.

Obviously, the value of money is not directly related to its reliability. And in order for the economy to develop dynamically and in a multi-vector manner, thereby insuring itself from crises, the currency must be stable and the state’s financial policy flexible.

Notes

Do not forget to get acquainted with modern exchange rates yourself, using special services on the Internet.

Don’t forget that there has always been and will be the cheapest money in the world. However, the global financial situation is constantly changing, because of which, already in 2017, the rates of all currencies in the world may change radically, since according to the forecast, the dollar should collapse soon.

Although the cheapest currencies in the world are profitable in relation to the ruble, you will be able to make a lot of money from this. In any case, everything comes down to dollars, in comparison with which, today, even the ruble is inexpensive.

Video

The world economy is the main topic that most often worries the world community. People study it, analyze the economic systems of various countries, and keep statistics on the most successful, as well as the cheapest currencies in the world. Increasing inflation and lack of resources for some countries is the main reason why their currencies become cheaper and become unclaimed. The economic crisis hit the world again and currencies began to rapidly lose ground. This collection contains the 10 cheapest currencies in the world. They are so cheap that even one dollar can become a fortune for local residents.

Zambian Kwacha (1 USD= 5249.9 ZMK)

This currency of Zimbabwe appeared in 1986. Initially, its cost was quite high, and 1.2 kwacha was equal to 1 US dollar. But the country began to lose its economic status, and Kwacha's performance began to deteriorate. Due to this decline, the Zimbabwean government changed the ISO code of the currency from ZMK to ZMW. Many efforts have been made to prevent the collapse of Zimbabwe's national currency, but the government still has a long way to go.

North Korean Won (1 USD= 6,300 KPW)

Issued in 1947, the North Korean won replaced the Korean yen in the country. The currency was issued only to local North Korean citizens, and other currencies were used for those visiting the country. The government reissued the Won several times, but all attempts were in vain, and it remains one of the least valuable currencies in the world.

Guinean Franc (1 USD= 6,692.6 GNF)

Used mainly by African countries, the Guinean franc was introduced in early 1959. It replaced the CFA franc, but was a major failure. The currency began to lose its quality due to high inflation and progressive poverty in African countries. The government has a real challenge ahead of them if they want to overcome the economic crisis and increase the value of their currency.

Lao Kip (1 USD= 7,966.0 LAK)

It is the only currency that was initially issued at a low value and has shown growth in the future. The currency was first issued in 1952. Back then, one US dollar was equal to 8,556.56 lao kip, but now the exchange rate is 7,996. According to economists, the country's currency will improve further over the next twenty years.

Belarusian ruble (1 USD= 10,700 BYR)

This currency appeared in 1992, and since then has been losing its position every year. The government made many efforts to stabilize and increase the value of this currency, but all efforts were in vain. The main reason for this decline is the high level of inflation and the poverty of the economy. There is quite little chance that the currency will show growth in the coming years.

Indonesian Rupiah (1 USD= 9.593 IDR)

When Indonesia became independent in 1949, the Indonesian rupiah was introduced. At first, the currency was in demand on the market, but soon it began to fall dramatically. Indonesia is an economically stable country in Southeast Asia, and many are surprised that its currency has such a low value. The Indonesian government is making efforts to strengthen the rupiah, and by the end of 2014 the currency has strengthened, having lost a few zeros.

Dobra Sao Tome (1 USD= 18,770 STD)

It is unlikely that you have heard the name of this currency before, as well as the name of this country. Dobra Sao Tome belongs to a small island located in western Africa. The country's economy has been stable in past years, based on cocoa production. But the recent discovery of oil fields will also help the island's economic growth, and will likely strengthen the local currency.

Vietnamese dong (1 USD= 20,837 VND)

Economists have predicted a good future for Vietnam. Although the current economic situation is not yet very impressive, the country is trying to improve its economic stability. The dong was introduced into the country in 1978 and quickly depreciated. However, the economy is now developing, and according to forecasts, over the next thirty to forty years it will experience a strong leap.

Somali Shilling (1 USD= 22,000 SOS)

The original currency of Somalia appeared in 1962. The country's economic status was stable at the time, but economic disruption followed shortly after the outbreak of the civil war. This also led to the depreciation of the currency. Since then, Somalia has tried hard to regain its lost economic strength, but has failed every time.

Iranian rial (1 USD= 24.576 IRR)

The Islamic Revolution is one of the important events in the history of the world. Many changes have occurred around the world since then, among them the birth of a new currency, the Iranian Rial in 1979. According to most opinions, the main reason for the collapse of the Iranian Rial is competition between the US and Iran.