Most of the currency mentioned in the list has been depreciation for a few years and show no sign of improvement in the near future. Although, a couple of currencies are showing a promising future, primarily because of the government’s efforts. Most of the country with low currency value are either corrupt, involved in war or are victims of epidemics and frequent natural disasters.
Top 15 Cheapest Currencies in the World
In this blog, we are going to list out the top 15 cheapest currency in the world. The lowest currency in the world as of January 2019 is Venezuelan Bolivar or VEF; 1 USD is equal to 248487.64 VEF as of January 10th, 2019.
Here are the top 15 list of the cheapest currencies (on 10th Jan 2019) in the world
- Venezuelan Bolivar (1 USD = 248487.64 VEF)
- Iranian Rial (1 USD = 42741.81 IRR)
- Vietnamese Dong (1 USD = 23029.98 VND)
- Sao Tomean Dobra (1 USD = 21050.60 STD)
- Indonesian Rupiah (1 USD = 14043 IDR)
- Guinean Franc (1 USD = 9121.11 GNF)
- Lao Kip (1 USD = 8485.09 LAK)
- Sierra Leonean Leone (1 USD = 8390 SLL)
- Uzbekistan Sum (1 USD = 8339.83 UZS)
- Paraguayan Guarani (1 USD = 6002.21 PYG)
- Cambodian Riel (1 USD = 3978.99 KHR)
- Uganda Shilling (1 USD = 3731.29 UGX)
- Malagasy Ariary (1 USD = 3544.30 MGA)
- Colombian Peso (1 USD = 3128.29 COP)
- Mongolian Tugrik (1 USD = 2453.75 MNT)
01. Venezuelan Bolivar (1 USD = 248487.64 VEF)
Once the currency drew its value from silver with 1 Bolivar equating 4.5 grams or 0.1575 ounces of silver. The currency moved to get its value from gold and eventually it became fixed to US dollar; in the 1930s 1 USD valued to 3.914 Bolivar. Till the 70s the currency remained stable and then the value eroded due to hyperinflation. Today the currency is pretty much worthless, even more than the value of the paper. High inflation has increased demand for US dollars in the country with black-market exchange rate is valued at 225000 VEF per 1 USD. To get a perspective, if you have to get a roll of toilet paper, you will have to pay a backpack full of VEF bank notes.
02. Iranian Rial (1 USD = 42741.81 IRR)
Iranian RIal could be 2nd on this list, but many would consider IRR to be the cheapest as many don’t consider VEF into currency for its high volatility. IRR is also another highly volatile currency that in late 2018 dropped to a record low of 170000 IRR per 1 USD on the unofficial market. Although the country has the 4th largest oil and gas reserve in the world with over 150 billion barrels, its constant war with Iraq, USA and hyperinflation have caused the currency to drop significantly. In 2018 along the currency dropped over 95%. That said, it has improved marginally since the past few months and is relatively “stable” as of now.
03. Vietnamese Dong (1 USD = 23029.98 VND)
VND or Vietnamese Dong is one of the cheapest currencies but is an emerging market. The country moved from a central planning economy to a market economy since 1986. Its transition did help grow its economy marginally by over 6% in 2016. However, a civil war between the North and South Vietnam start its devaluation. Moreover, its high inflation and unstable economy forced the country to use only State Bank Statement Checks for an industrial transaction. That said, the experts believe that government is making significant progress and will soon meet its neighboring countries.
04. Sao Tomean Dobra (1 USD = 21050.60 STD)
The Db is made up of 100 cêntimos, but inflation has rendered it useless. In the late 70s many of the Db coins became obsolete for inflation; even with the new denomination, the currency is struggling. The country’s economy primarily depends on its cocoa bean exports, which has also dropped because of draught. The country is currently working on working on its tourism sector and increase production of cocoa beans and palm oil. The country also has a small oil sector and are creating oil fields to get foreign investment. Today, the country relies heavily on imports for food, fuel, and other products; which has resulted in a high fluctuation of domestic currency value. However, oil prices have remained fixed.
05. Indonesian Rupiah (1 USD = 14043 IDR)
Although Indonesia has a stable economy and is a developed country in South East Asia; its currency exchange is significantly low. Government is taking all measures to improve its currency value but up to no avail till now. However, the value is much better than 2018 when it hit 15000 against USD value. The government had managed to bring down the country’s inflation to below 5% in 2016 with a target to bring it down to 2.5% in 2019.
06. Guinean Franc (1 USD = 9121.11 GNF)
West Africa is one of the world’s mineral-rich country with world’s largest reserve of bauxite and high-grade iron ore. The country also possesses a high reserve of gold, adamants, and aluminum. However, poor government policies, high inflation, and growing gangsters have worsened its currency value. Compared to its natural reserves, it should be one of the wealthiest countries in the world. The outbreak of Ebola virus in Southern Guinea also contributed to its toppling economy.
07. Lao Kip (1 USD = 8485.09 LAK)
Lao Kip is the only currency in the list that has improved since its depreciation; in fact, Laos is the fastest growing economy in the world with nearly 8% GDP growth every year. Since 1986 the currency has improved because of decentralized government control and increase in private sectors. Even with its improving economy, it is one of the poorest countries in Southeast Asia. You can gauge its inflation rate from its largest banknote denomination i.e. 100000 Lao Kip.
08. Sierra Leonean Leone (1 USD = 8390 SLL)
Sierra Leone is considered the least developed country by UN. In the 90s a devastating civil war broke which killed nearly a third of the population; but, since then its economy has been gradually growing. Most of its economic growth is dependent on its gem-quality diamond, yet the country remains one of the poorest in the world. On top of that, the Ebola epidemic broke in 2014 killing over 4000 people and the country wasn’t declared Ebola-free until 2016.
09. Uzbekistan Sum (1 USD = 8339.83 UZS)
Located in Central Asia, the country introduced the Sum at 1 USD = 7 Sum after it got independence from the Soviet Union. After 2015, the inflation rate was at 8.5% and since then it has been rapidly growing. After the death of President Islam Karimov in 2016, the currency value plummeted even more. In 2017, the currency lost almost half of its value in just one day due to the government crackdown on the black market. Today, unemployment is one of the biggest problems in the country and most of them are working abroad in Russia for income.
10. Paraguayan Guarani (1 USD = 6002.21 PYG)
The Republic of Paraguay economy depends largely on agriculture. Although the economy has increased recently by 4.4% per year due to its agricultural goods export, primarily soybeans; the currency is still one of the cheapest in the world. Its major currency depreciation is the reason for the country’s bank shutdown in 1995. In the late 80s the exchange rate was 126 PYG per USD; since then it has declined and has reached 6000 per USD. According to the world bank, the country experiences a GDP growth of 0.8% with an inflation deflator of 5.5% annually.
11. Cambodian Riel (1 USD = 3978.99 KHR)
Corruption, civil war, and Vietnamese invasion lead to severe inflation which is the cause of its economic chaos and its low value. Due to its low currency exchange, a large of the population today prefers US dollar for payments, causing significant devaluing of the currency. Over 90 percent of the economy now accepts USD; even Cambodian Visas must be paid in USD.
12. Uganda Shilling (1 USD = 3731.29 UGX)
Since 2017, the currency has consistently lost ground against USD. In 2008 1 USD was equal to 1600 UGX and today it has depreciated down to 3731. In just over a year, the currency lost by over 100%. The primary reason is its low export sector and high import sector. The trade deficit was $2.5 billion in 2018.
13. Malagasy Ariary (1 USD = 3544.30 MGA)
MGA is the currency of Madagascar, whose economy is mostly unregulated and has many unexplored natural resources. Its low currency value is the reason for government corruption, poor law enforcement, the weak judicial system, and absence of capital markets. The country faces challenges on multiple grounds including education, and healthcare. Its primary source of economy is agriculture, fishing, and forestry which accounts for one-fourth of the country’s GDP and over 70% of employment.
14. Colombian Peso (1 USD = 3128.29 COP)
The Peso is the official currency of Colombia since the 19th century and since then it has been pegged to French Franc, Pound, US dollar, and the Gold Standard, for which it is today a free-floating currency in FOREX. During the early 20th century, the peso was pegged at nearly $106 COP to $100 USD; however, the ratio is now broken for its high inflation. For a perspective, today a $400 USD would be $1.15 million in COP.
15. Mongolian Tugrik (1 USD = 2453.75 MNT)
Mongolia’s economy has been developing consistently for the last few years. Although it is one of the cheapest currencies in the world, the experts say its economy has been increasing at a rate of 6% as of 2018, which is commendable. Mongolia’s currency is not as weak as others in the list as it shows promising growth in the future.
Bonus
16. EarthCoin (Cheapest Cryptocurrency) (1 USD = 2867.99 EAC)
Don’t be fooled by the term cryptocurrency as most see EarthCoin be a scam. Although it has a market cap of $900000+ and has a surplus supply of 9,000,000,000+ EAC. The coin has its superblocks which are premiered and even insta-mined which is typically employed for pump and dump schemes.
Conclusion
Venezuelan Bolivar, the cheapest currency in the list is considered literally ‘worthless’ by many economists. A recent article by BBC News shows that for a 2.4kg of chicken you will have to pay 14,600,000 Bolivars which is just $2.3 and you have to pay a heap of banknotes. The economy is devastatingly poor and some say the value of the banknote paper and its printing cost is more than its denomination. According to IMF, the inflation will hit 1000000% in 2019.