Global currency struggles: A look at the world's weakest currencies in 2024
Shafaq News/ The list of the weakest currencies against the US dollar saw minimal changes over the past year, though the rankings shifted for some countries.
Arab currencies also featured prominently among the worst performers this year, with the Lebanese pound and Egyptian pound making the list. Zimbabwe’s gold-backed currency, the "ZimDollar," topped the ranking with a staggering 954.2% decline.
- Lebanese Pound: The Lebanese pound experienced one of its worst years, with its value against the dollar rising by approximately 500%, reaching 89,560 pounds per dollar on the parallel market. This devaluation aligns with International Monetary Fund (IMF) requirements to address Lebanon’s banking and economic crises.
In May 2024, the IMF highlighted those policies implemented by the Ministry of Finance and the Central Bank, including phasing out budget financing, scrapping the "Sayrafa" exchange platform, adopting tighter fiscal policies, and unifying exchange rates, helped stabilize the pound, curb inflation, and contain monetary supply pressures.
- Iranian Rial: Once the weakest currency in the world, the Iranian rial now ranked third, reflecting the enduring impact of US sanctions following the collapse of the 2015 nuclear deal.
In 2024, the rial weakened marginally by 0.21% against the dollar, reaching 42,090 rials per dollar. However, regional tensions, particularly in Syria and the Middle East, pose further risks to the currency.
-Vietnamese Dong: The Vietnamese dong (VND) came fourth among the world’s weakest currencies, largely due to restrictions on foreign exports, which also saw a decline in volume. In response, Vietnam’s central bank devalued the currency to boost export competitiveness.
Over the past year, the dong weakened 4.46% against the dollar, closing at 25,460 dongs per dollar.
- Sierra Leonean Leone: Ranked fifth, Leone is impacted by high debt levels, inflation, slow economic growth, and the lasting effects of health crises like the Ebola outbreak.
The Leone depreciated 1.43% against the dollar in 2024, reaching 22,790 leones per dollar.
- Lao Kip: The Lao Kip (LAK), placed as the sixth weakest currency globally, is facing challenges such as high inflation, slow economic growth, and mounting external debt.
In 2024, the kip depreciated by 6.44%, with the dollar trading at 21,820 kips.
- Indonesian Rupiah: Indonesia’s dependence on imported goods, including crude oil, made it highly vulnerable to global inflation, driving up costs and exacerbating the country’s trade deficit.
The rupiah came seventh, as weakened by 4.86% against the dollar in 2024, closing at 16,220 rupiahs per dollar.
- Syrian Pound: Despite slight improvements in late 2024 following the fall of Bashar al-Assad’s regime, the Syrian pound ranked eighth among the weakest currencies, trading at 13,000 pounds per dollar. The prolonged 14-year conflict has left devastating effects on Syria’s economy.
- Uzbekistani Som: Ranked ninth, the Uzbek Som continues to face challenges, including high unemployment, inflation, sluggish economic growth, and persistent corruption.
The som weakened by 4.59% against the dollar in 2024, reaching 12,900 Soms per dollar.
- Guinean Franc: The Guinean franc, placed tenth, has struggled since the political conflicts of the 1990s, weakened by military unrest and high inflation. However, recent signs of recovery have emerged.
The franc depreciated 1.61% against the dollar in 2024, trading at 8,645 francs per dollar.
- Paraguayan Guarani: Paraguay’s currency came in the 11th rank. It suffers from ongoing inflation, unemployment, corruption, and counterfeit money circulation, keeping it among the world’s weakest currencies.
The Guarani depreciated 7.55% against the dollar in 2024, trading at 7,800 Guaranis per dollar.
