The world is changing every day. Stock markets rise and fall as well as currency exchange rates. A lot of individuals are familiar with the strong, stable, and most valuable currencies in the world like the Pound, Dollar, Euro, Franc, Yen, etc.
But what about the least valuable currencies? Here is a recently formulated list of the top 5 least valuable currencies in 2020.
1. Iranian Rial(IRR)
The IRR currently has the highest devalued currency in the world.
1 USD = 220,200 IRR
The reason for its devaluation was the result of the Islamic revolution in 1979 which led to the departure of many businesses from the country. Also, the country’s war against Iraq. In 2018, Iran was sanctioned by the United States as a result of its Nuclear weapons. This sanction made Iran lose the avenue to sell their major export product, petroleum. This led to inflation and the devaluation of their currency.
2. Vietnamese Dong(VND)
1 USD = 23,260 VND
Third on the list is the Vietnamese Dong. Apparently, a dollar can get you 2 coffees, a plate of pho no, a crate of quail eggs, and a couple more stuff. However, experts say that Vietnam is on its way to better days. The government is full of corrupt officials and thus, there is little or no breakthrough as regards the economical progress of the country.
3. Indonesian Rupiah (IDR)
1 USD = 14,786 IDR
Indonesia is an averagely developed Asian country but its currency currently suffers from having a slow exchange rate. The Indonesian currency crisis as well as the drought effects in the country have combined to cause the high inflation in the country. The government is presently taking steps to improve the exchange rate and strengthen the currency.
4. Uzbek Sum (UZS)
1 USD = 10, 134 UZS
When the monetary policy was liberalized in September 2017, the exchange rate became 1 USD to 8,100 UZS. The currency has been suffering devaluation since then. The country has a poor, as well as inefficient chemical and petroleum sector.
Corruption is also the major cause of poverty and underdevelopment in the country.
5. Laoatian Kip (LAK)
1 USD = 9, 097 LAK
Last on the list of the top 5 least valuable currencies in 2020 is the Kip. The main reason for the devaluation of the Kip is the constant rise of the US dollar. This devaluation has led to rising in inflation in the country. The present COVID-19 pandemic and global economic recession have also led to job loss and a rise in the country’s public debt.
Conclusion
Currency gets devalued when the country’s monetary policy is disorganized or there is a downturn in the economy- in the form of a decrease in GDP, war/crisis, fall in the prices of major exported products, political issues, etc. This leads to rise in the inflation rate and the balance of payment deficit.
It is quite difficult to find the correct order of the least valued currencies as exchange rates change every day due to the rise and fall of economies. Nevertheless, the hard work of looking has been done for you as above is a current list of the top 5 least valuable currencies in 2020.
