In this article, we will take a look at the 5 weakest currencies in the world in 2024. If you would like to read our discussion on the foreign exchange market, you can go to the 15 Weakest Currencies in The World in 2024.
5. Indonesian Rupiah (IDR)
1 USD = 15,619.25 IDR
Indonesia faced many challenges, including the 1997 Asian financial crisis, the 2007-2008 Great Recession, and the Covid-19 pandemic, all contributing to the weakness of the rupiah. Furthermore, declining foreign exchange reserves worsened the depreciation of the currency. With limited reserves, Indonesia’s central bank, Bank Indonesia, faces difficulties protecting its currency from rising US interest rates.
4. Sierra Leonean Leone (SLL)
1 USD = 19,750.00 SLL
Sierra Leonean Leone (SLL) was introduced as the replacement for the British West African pound in 1964. During the 1980s, there was a short time when the SLL’s value surpassed the US dollar before it began facing depreciation. The civil war in Sierra Leone further increased inflation, resulting in the introduction of many versions of the SLL to stabilize the currency. Both the old and new versions of the SLL are still in use. However, inflation is still rising and is at a rate of 37.8%.
3. Lao Kip (LAK)
1 USD = 20,856.61 LAK
Laos is one of Southeast Asia’s poorest nations that has been facing many economic challenges. The kip has been Laos’ currency since 1955, replacing the French Indochinese piastre at an equal rate. Originally tied to the US dollar from 1958 to 1972, the kip underwent two replacements in 1972 and 1979 in efforts to stabilize its value.
2. Vietnamese Dong (VND)
1 USD = 24,462.50 VND
After the reunification of Vietnam in 1978, the Northern dong and Southern dong were combined into a single currency. However, economic challenges led to adjustments to strengthen the currency. These measures proved counterproductive, leading to a staggering 774% inflation rate by 1986. Despite subsequent efforts to stabilize the currency, the impact of this economic downturn persists, making VND one of the weakest currencies in the world.
1. Iranian Rial (IRR)
1 USD = 42,030.00 IRR
The Iranian rial is one of the world’s least valuable currencies. Many factors have led to its depreciation. Following the Islamic Revolution in 1979, foreign investors withdrew from Iran, contributing to a decline in the currency’s value. Moreover, the Iran-Iraq war increased economic challenges and political unrest in the country. As of 2023, the inflation rate in Iran has risen to approximately 47%.
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