Top 10 The Weakest Currencies In The World in 2023 (Updated May)

Explore our comprehensive guide to the top 10 weakest currencies in the world in 2023. Gain unique insights into global economic trends, exchange rates, and factors influencing currency strength. Stay informed and understand the world economy better.

With the world suffering from the COVID-19 pandemic, economic conditions have worsened exponentially. The weakest Currencies in the world have either remained stagnant or fallen even below what they were in previous years.

The world’s weakest currencies belong to the world’s third-world countries, where perhaps the economic crisis has hit the hardest. Let’s get into it.

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1. Iranian Rial 

The Iranian Rial ranks as the weakest currency in the world.

Its economic downfall started as far back as 1979 in the wake of the Islamic Revolution, which led to many businesses leaving the country due to uncertainty.

Since then, Iran has faced a further downfall in the Iran-Iraq war and nuclear sanctions. The sanctions were lifted briefly in 2016 but reinstated more harshly in 2018 and then again in 2022. 

Iranian Rial Currency Code = IRR 

2. Vietnamese Dong 

The Vietnamese Dong ranks as the second weakest currency in the world.

Still recovering from wars and shifting from a centralized to a market economy has taken its toll on the country and its operations. Vietnam is currently amongst the poorest countries in the world.

However, leading economic experts reassure us that Vietnam is on the right path and will catch up to other countries sooner rather than later. 

Vietnamese Dong Currency Code = VND

3. Sierra Leonean Leone Currency

Sierra Leone, located in Africa, is one of the poorest countries and has one of the world’s weakest currencies.

Civil uproars, a recent war, and recurring combats with deadly viruses like Ebola keep the country from focusing on economic prosperity, resulting in one of the weakest economies.

That, coupled with the COVID-19 pandemic, has made matters even worse for the country as its economy devalued even more in the last two years than it had previously. 

Sierra Leonean Leone Currency Code = SLL

4. Indonesian Rupiah 

Indonesia is one of the relatively well-off countries in Southeast Asia. Their economy is stable, and the country is well on the developing side of things and pretty well off. However, their currency rates are meager.

The regulatory bodies have been trying to fix this by issuing new banknotes in denominations of 1 thousand to 100 thousand to replace the older banknotes and other changes to no avail.

The Indonesian Rupiah remains one of the weakest currencies in the world and hopes to advance soon. 

Indonesian Rupiah Currency Code = IDR

5. Laotian Kip Currency

The Laotian Kip, belonging to Laos in Southeast Asia, is rare. This is because it is the only currency on our list that has not been devalued.

At its independence, the Laotian Kip was already issued at very low rates to the people back in 1953.

In fact, the Laotian Kip has actually strengthened and grown against global currencies like the USD and will probably keep doing so shortly. 

Laotian Kip Currency Code = LAK

6. Uzbekistani Som Currency

Central-Asian country, Uzbekistan, is also on the list of the weakest currencies in the world. Part of the third world, Uzbekistan, has not been very well off.

In 2018, however, many regulatory measures were taken to elevate the Uzbekistani Som in the global economy.

While they have been mildly successful in helping the economy grow, Uzbekistan still has a long way to go to compete on an equal footing in the global market. 

Uzbekistani Som Currency Code = UZS

7. Guinean Franc Currency

Africa is chock-full of immensely valuable minerals, especially in Guinea. However, the country remains one of the world’s weakest currencies.

The country remains among the world’s poorest, with high poverty rates, gang issues, and inflation. Its economy is one of the most inflated worldwide.

However, it has improved in the last few months, with the currency growing by about a few hundred Franc. 

Guinean Franc Currency Code = GNF

8. Paraguayan Guarani Currency

Paraguay is the second poorest South-American country and the eighth weakest currency globally.

Due to a combination of economic failure, poverty rates, high corruption, and a small service sector, Paraguay has not been able to advance economically in recent years.

It is a frequent exporter of soybeans and cotton. However, this has not been enough to combat the country’s growing poverty and economic disruption. 

Paraguayan Guarani Currency Code = PYG

9. Cambodian Riel

Cambodia is a monarch state in Southeast Asia and the ninth on our list of the weakest currencies in the world. The Cambodian Riel began its life in 1995 in an effort to replace the Indochinese Piaster.

It was issued meager rates and was not popular among the locals, making it unable to progress in the global market.

Even now, the Cambodian Riel remains one of the more unpopular currencies in the area.

The locals prefer to make payments using U.S. dollars and other, stronger currencies, leading the currency to devalue even more so. 

Cambodian Riel Currency Code = KHR

10. Ugandan Shilling

Despite the devastating effects of COVID-19 on economies, some currencies remained as weakest as they were in 2022. Ugandan Shilling(UGX) is one of them. 

The currency Uganda uses is known as the Shilling. Its banknotes have the following face values:

• 1000 shillings
• 2000 shillings
• 5000 shillings
• 10000 shillings
• 20000 shillings
• 50000 shillings

Ugandan Shilling Currency Code = UGX

The value of UGX over time has been stable. It even improved in the past few years.

However, regardless of this currency’s stability, 1 U.S. Dollar still equals 3,733.39 UGX. Therefore, it proves how relatively weak UGX is to other currencies. 

Conclusion

Investing in a weaker currency may be pretty rewarding, but an opportunity that is laden with risk. Before you decide to invest in a currency weaker than yours, you must thoroughly research why it is so.

Understanding the reasons behind its weakness and assessing whether or not an investment is worth the risk.

Study the latest trends in the world economy, political stability, development, and investment opportunities so you can profit from low-value or weaker currencies. 

Good luck with your hunt!

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