The Weakest Top Ten Currencies

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Many traders and investors focus on the powerful, stable, and strongest global currencies such as the Euro, the US dollar, the British Pound, and the Swiss Franc. What about the weakest and least valued currencies? The knowledge about weak currencies is also as important as that of the strongest and stable currencies because it can help investors, traders, and foreign currency traders to avoid currencies that can lead to losses. The weak currencies’ list is always changing because of the high volatility of weak currencies, and it is not easy to state the weakest currency with certainty at any one time. However, it is possible to list the weakest of currencies in the globe and detailed below is a list of the current weakest currencies in 2016.

Cambodian Riel
Cambodia’s Riel exchanges at the rate of 4055 Riel for one USD, and it is among some of the weakest Asian currencies. The currency was initiated in 1995 to replace the Indochinese Piaster, and since then the currency has had a very low value and minimal acceptance among locals who have preferred to hold their wealth in foreign currencies. More Cambodians prefer to trade in dollars and this further devalues the currency because it shows low reliability.

Iranian Rial
The possibility of Iran becoming a global nuclear threat and its possibility of attacking neighboring enemies such as Israel compelled most global superpowers and their allied friends to impose political and economic sanctions, which crippled the Iranian economy and its currency. The sanctions restrict access to the world markets and Iran is unable to sell its major income earner – oil. This has led to a significant budget deficit that has made the Iranian Rial very weak. However, there is some glimmer of hope because the EU and the US have lifted some of the sanctions after political negotiations.

Sao Tomean Dobra
The West African islands of Principe and St. Tome export coconuts, coffee, and cacao, but these commodities are not sufficient to support the local economy to the expected level. As a result, the nation has a negative balance in trade in most years and the currency is weak in relative comparison to other major global currencies. However, the islands have recently discovered some oil reserves and it is expected that the economy may improve as well as the value of the Dobra, which currently exchanges at a rate of 22691 Dobra for one USD.

Vietnamese Dong
Vietnam is still working towards a market-based economy after shifting from a centralized economy. The slow advances in this direction coupled with challenges of the past long wars have made the economy weak. As such, the Dong is weak, but experts hold that the nation has the right policies and its working in the right direction. If this expert analysis holds some water, then the nation may soon catch up with its Asian counterparts.

Belarusian Ruble
Belarus is one of the nations that emerged after the collapse of the USSR in 1992. Belarus created its own national currency after breaking away from the USSR, but the Belarusian Ruble has ever been on the decline in terms of value since its initiation. Corruption, political interference, inflation, and high taxes are to blame for the poor economic performance and a low currency value and exchange rate.

Indonesian Rupiah
The Indonesian economy is one of the developed and stable economies of South East Asia, but its currency has a low value and exchange rate. The nation has adopted various fiscal measures to improve the exchange rate and value of the nation’s currency, but there have been very minimal gains.

Sierra Leonean Leone
The Leone exchanges at a rate of 4129 Leones for one USD, and it is among the weakest African currencies. The nation has rich mineral resources such as diamonds, but its economic growth has been crippled by long periods of civil wars that have led to resource theft, corruption, and a politically unstable nation.

The Lao Kip
The Laotian Kip is the only Asian currency that has not devalued significantly, but it still has a very low value because it was initially issued at a very low rate. However, since its issue in 1952, the currency has had some marked improvements in gaining value against the USD.

Guinean Franc
The Guinean Franc is one of Africa’s weakest currencies with an exchange rate of 7822 Guinean Francs to one USD. High rates of poverty, inflation, and a stagnated economy are the major causes of the weakness of Guinea’s currency. However, if political and structural changes occur in the leadership, then the nation’s economy and currency may grow because the nation has rich aluminum and gold deposits as well as other natural minerals.

The Paraguayan Guarani
Paraguay is the second poorest nation in South America, and its poor political leadership, corruption, low academic standards, inflation, and high unemployment have led to its economic downfall. Currently, 5950 Guarani exchange for one USD. The nation exports soybeans and cotton, but these are hardly sufficient to support the nation’s needs.

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The Weakest Top Ten Currencies

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