Do you know what are the cheapest currencies in the world in 2017?
With 195 UN recognized countries in the world, there are 164 national currencies according to Countries of The World. Moreover, there are many countries in the European Union that use Euro as the official currency, and there are a lot of them besides the United States that use US dollar, precisely ten of them. Among those 164 currencies the newest one is the South Sudanese pound, whereas the oldest in the world is the British pound, dating back from the 8th century.
Pushish Images/Shutterstock.com
So, how do you know if one currency is weak or strong? Well, in order to realize it, it has to be first contrasted to another currency. Indeed, the exchange rate can be defined as “the ratio at which the principal unit of two currencies may be traded”. The usual parameters for all other currencies are Dollar or Euro, as they are mostly used. Moreover, currencies are often changing their values. Even though its strength is shown mainly through its stability, and currency’s stability is an indicator of a strong economy among others, it doesn’t always have to be the case that the cheap currency is bad for one country’s economy. Let’s see why. One of the reasons is that export could grow as one country’s goods are relatively cheaper compared to the goods of stronger currencies. However, if you are interested in expensive currencies check out the 10 Most Expensive Currencies in The World in 2017.
Currency fluctuations impact many aspects of one country’s economy: import/export, capital flows, economic growth, inflation, interest rate. Furthermore, due to the globalization phenomena, economic and financial interdependence among countries has increased, thus making it possible for strong currencies (such as the US dollar) to have a global impact whenever they change their value. In order to create the list, we looked for low-valued currencies and then checked their exchange rate against the US Dollar on 30th June 2017 and ranked them in that manner. The following list of cheapest currencies in the world in 2017 goes from the least cheap currency in our ranking, to the cheapest one. Here we go:
12. Costa Rican Colon
1 USD = 565.285 CRC
Costa Rican Colon was introduced in 1896, by replacing Costa Rican Peso. The symbol is big letter C with two diagonal strokes. It is named after Christopher Columbus, known as Cristobal Colon in Spanish.
11. Somali Shilling
1USD = 587.351 SOS
The Somali Shilling that ranked 11th on the list of cheapest currencies in the world in 2017 is the official currency of Somalia. It was introduced in 1962, a little bit after Somalia gained independence. It replaced East African Shilling, which was a currency during the British Somaliland Protectorate.
10. Cambodian Riel
1 USD = 4,076.74 KHR
In Cambodia there were two different Riels. First was issued between 1953 and 1975. Then from 1975 until 1980, the country didn’t have a monetary system. After that period, from 1980, the second Riel was introduced, that is currently in use.
9. Paraguayan Guarani
1 USD = 5,575.07 PYG
We are continuing our list of cheapest currencies in the world in 2017 with Paraguayan Guarani that is the national currency of Paraguay. It is divided into 100 Centimos, but because of the inflation, centimos are no longer used. Guarani was first introduced in 1944.
8. Sierra Leonean Leone
1 USD =7,430.47 SLL
Before Leone, in Sierra Leone was used British West African Pound. Then, after gaining independence, Leone was introduced in 1964.
7. Laotian Kip
1 USD = 8,247.04 LAK
Lao or Laotian Kip is on the seventh place of the cheapest currencies in the world in 2017. Laos started using this currency in 1952, replacing the French Indochinese piastre.
6. Guinean Franc
1 USD = 9,018.04 GNF
First Guinean franc was issued in 1959, when it replaced the CFA franc which is short for West African CFA Franc and Central African CFA Franc – two currencies that were used in Africa, but guaranteed by France. Then in 1971, Franc was replaced with Syli, but reintroduced in 1985 and it has been in use until now.
5. Indonesian Rupiah
1 USD = 13,320.60 IDR
Rupiah is the official currency of Indonesia. The name “rupiah” come from a Hindustani word that in translation means silver. In addition, you can hear Indonesians use the word “perak”, which also means silver and it refers to rupiah, but in a more informal sense.
4. Belarussian Ruble
1 USD = 19,349.50 BYR
Belorussian ruble is divided into 100 kopeks. Throughout history, there were two rubles. After the dissolution of the Soviet Union, the first one was used from 1992 until 2000. Then, the new ruble took place in 2000, which is still in use nowadays.
3. Sao Tomean Dobra
1 USD = 21,510.35 STD
On the third place of the cheapest currencies in the world in 2017 is Dobra, the national currency of Sao Tome and Principe, a little country in the Guinea Gulf. It was introduced in 1977, replacing the Escudo. In 2009, this island country signed a contract with Portugal about linking the Dobra with the Euro.
2. Vietnamese Dong
1 USD = 22,729.70 VND
Vietnam was a former French colony, and when it finally got its independence, then it also introduced its currency. It happened in 1978, when the Dong replaced French Indochinese Piastre.
1. Iranian Rial
1USD = 32,500.70 IRR
On the top of our list of the cheapest currencies in the world in 2017, is Iranian Rial. Before Rial, there was “Toman” as a currency, and because Iranians were use to it, nowadays they still name Rial as a Toman. Even though it is widely known that this country is rich in oil, it doesn’t make difference on the international scene, where due to a lots of political and economic sanctions, Iranian Rial is found in the first place on our list.
