The 10 cheapest currencies in the world - Explained by Digimagg in 2024

Many individuals commonly associate the strongest currencies with the U.S. dollar, given its widespread use and exchange worldwide. However, contrary to popular belief, the Kuwaiti Dinar (KWD) holds the title of the strongest currency.

However, consider the scenario in a country where an amount as modest as INR 2,000 could transform an individual into a millionaire, or where INR 500 could equate to a value in the tens of thousands. Furthermore, envision destinations where vacationing is not constrained by financial concerns.

How Overseas Currencies Are Valued?

Foreign currencies are consistently traded in pairs. For instance, one might exchange Indian rupees for Vietnamese dong or Indian rupees for Iraqi dinar. Consequently, currencies are always valued relative to another currency, known as the exchange rate.

Some currencies are floating, meaning their values fluctuate based on supply and demand, while others are pegged, maintaining a stable value at an agreed-upon rate.

The exchange rate directly impacts the pricing of goods and services in foreign currencies. For example, if the Indonesian rupiah weakens against the rupee, the cost of a holiday in India would increase when calculated in rupiah.

Top 10 least valuable currencies worldwide as of march 2024

Iranian Rial (IRR) 1$ = 42035,00 IRR

The Iranian Rial (IRR) holds the distinction of being the least valuable currency globally. Its depreciation is attributable to several factors. Following the Islamic Revolution in 1979, foreign investors withdrew from Iran, initiating a decline in the currency's value. Additionally, the country's nuclear program and the Iran-Iraq war further exacerbated financial instability, compounded by ongoing political unrest within Iran.

Vietnamese Dong (VND) 1$ = 24,826.218015 VND

Vietnam's centralized economy transitioned toward a market economy, but the dong remains significantly devalued. However, prospects for currency improvement are plausible with economic advancements.

Sierra Leonean Leone (SLL) 1$ = 19750,00 SLL

Poverty and a history of financial scandals, corruption, and conflicts, including civil war and the Ebola outbreak, have severely impacted the Sierra Leonean economy, resulting in a depreciated currency.

Lao or Laotian Kip (LAK) 1$ = 21107,50 LAK

Introduced in 1952, the Lao Kip has maintained a low valuation. Nevertheless, ongoing infrastructure developments, such as plans for a railway linking Beijing to Laos, suggest potential for currency value improvement.

Indonesian Rupiah (IDR) 1$ = 15918,30 IDR

Over the past seven years, the Indonesian Rupiah (IDR) has shown no signs of improvement. Factors contributing to its devaluation include dwindling foreign exchange reserves and Indonesia's heavy reliance on exports, which have been affected by falling commodity prices.

Uzbekistani Som (UZS) 1$ = 12655,00 UZS

Despite various economic reform measures implemented by the Uzbekistani government, the economy has yet to see significant improvement. The impact of recent reforms on currency value remains uncertain, compounded by the repercussions of the Covid-19 pandemic, which have disrupted industrial output and added to the currency's unpredictability.

Guinean Franc (GNF) 1$ = 8595,00 GNF

Guinea's currency, the Guinean Franc (GNF), is undermined by corruption and political instability, leading to its continuous devaluation over the years.

Paraguayan Guarani (PYG) 1$ = 7390,83 PYG

Paraguay's economy is experiencing severe downturns marked by high inflation, unemployment, poverty, and corruption, all contributing to the depreciation of the Paraguayan Guarani (PYG).

Ugandan Shilling (USH) 1$ = 3886,30 UGX

Despite recent improvements, Uganda's economy still grapples with the aftermath of policies implemented during Idi Amin's regime, which adversely affected economic development. While there have been minor advancements in currency value, the overall devaluation persists.

Iraqi Dinar (IQD) 1$ = 1310,00 IQD

Iraq's currency, the Iraqi Dinar (IQD), has faced significant inflation since 1990, rendering its subdivision, the fils, nearly worthless. Political instability in the past decade has further compounded economic challenges, contributing to the dinar's devaluation.