The American “Forbes” magazine has listed the top 10 weakest currencies in the world. The Iranian riyal and Lebanese pound are among them. On the other hand, the Kuwaiti dinar is the strongest currency, even against the US dollar, which is among the strongest currencies in the world.
The American report, translated by Shafaq News Agency, states that although the US dollar is widely traded and considered strong, it is not actually the world’s strongest currency. The Kuwaiti dinar holds that title.
I recently read a report that explained how foreign currencies are priced. It stated that foreign currencies are traded in pairs, such as the US dollar and the pound sterling. The purchase price of the US dollar is always relative to the pound sterling, and this is what is known as the “exchange rate”. It was interesting to learn about how currencies are priced in relation to each other.
The report stated that most currencies are “floating”, meaning their value fluctuates according to supply and demand. However, some currencies are “pegged” to another currency, such as the US dollar, and have a fixed value.
I learned from a report that exchange rates have an impact on foreign currency expenses. It was pointed out that a rise in the pound sterling against the dollar would reduce vacation costs in the US when paid in pounds. This means that exchange rates can affect the cost of goods and services in a foreign currency. For instance, if the pound sterling were to increase against the dollar, it would make vacation expenses in the United States less expensive in terms of the pound sterling.
Investors seeking to profit from foreign currency trading can take advantage of exchange rate movements.
I read a report that analyzed the top ten weakest currencies of the year. The assessment was based on the exchange rates of these currencies with the US dollar, and it identified the ten most vulnerable currencies. The report determined this ranking by calculating the number of foreign currency units that can be obtained for one US dollar.
The Iranian riyal is the weakest currency in the world, with one riyal equating to 0.000024 US dollars. It was first introduced in the late 18th century and has been linked to the pound sterling and then the US dollar.
Although the currency now floats, it has remained steady at around 42,000 riyals to the dollar over the past few years. Despite Iran’s leadership in oil and gas, economic sanctions, political unrest, and high inflation have all contributed to the decline of the Iranian currency.
The report stated that the Vietnamese dong is considered the second weakest currency in the world. One dong buys 0.000042 US dollars, or one dollar equals 23,711 Vietnamese dong. This process began trading in 1978.
Services represent the largest proportion of the gross domestic product, followed by industries such as electronics, energy, and textiles. However, the currency has been affected by restrictions on foreign investment and the recent slowdown in exports, along with high-interest rates in the United States.
The Laotian kip is the third weakest currency, with $1 buying 19,072 kip. The currency, introduced in the 1950s, is floating. Laos heavily relies on exports, such as copper, gold, and timber, but the economy has been hit by slowing growth, high external debt, and inflation, putting pressure on the national currency.
Sierra Leonean leone is the fourth weakest currency in the world. One leone buys 0.000057 dollars, or one dollar equals 17665 Sierra Leonean leone. It was introduced in 1964 and is fully floating.
Sierra Leone’s main exports are timber and minerals, including diamonds, gold, and industrial minerals. The leone currency has declined due to high inflation, large debts, slow economic growth, and the Ebola virus outbreak.
The Indonesian rupiah, introduced in 1946, is considered the world’s fifth weakest currency. At present, 1 US dollar buys 14,993 Indonesian rupiahs.
Lebanon’s currency, the lira, is the sixth weakest in the world, with one US dollar worth 0.000067 Lebanese pounds, due to economic recession, high inflation, unemployment, banking crisis, and political unrest.
The lira has been linked to the US dollar since its introduction in the 1930s. Lebanon’s economy is largely based on services, but it also exports precious stones, minerals, chemical products, food, and beverages.
The report stated that the Uzbekistani som is the seventh weakest currency in the world. One som buys 0.000087 dollars, and 1 dollar equals 11.516 Uzbekistani som. The currency was introduced in 1993 and is fully floating.
Uzbekistan exports cotton and has large reserves of minerals, oil, and gas. Despite implementing economic reforms, the country still suffers from low economic growth, high inflation, unemployment, and corruption.
Guinea’s currency, the Guinean franc, ranks as the eighth weakest, with one franc equaling 0.000116 dollars. Despite the country’s rich reserves of natural resources, including gold and diamonds, Guinea has seen rising inflation rates, military turmoil, and an influx of refugees from neighboring Liberia and Sierra Leone.
Paraguay’s currency is the guarani, with one guarani equaling 0.000138 dollars. Introduced in 1952, it is fully floating. Despite being a major producer of soybeans, stevia, and beef and exporting corn and sugarcane, Paraguay faces inflation, corruption, and counterfeiting.
The Ugandan shilling, introduced in 1966, is the tenth weakest currency globally. Despite being rich in commodities such as oil, gold, and coffee, the country’s economy is plagued by unstable growth, high debt, and political turmoil. Currently, one dollar buys 0.000273 Ugandan shillings as the currency is floating freely.