Global currency struggles: A look at the world's weakest currencies in 2024
Shafaq News/ The list of the weakest currencies against theUS dollar saw minimal changes over the past year, though the rankings shiftedfor some countries.
Arab currencies also featured prominently among the worstperformers this year, with the Lebanese pound and Egyptian pound making thelist. Zimbabwe’s gold-backed currency, the "ZimDollar," topped theranking with a staggering 954.2% decline.
Lebanese Pound: The Lebanese pound experienced one of itsworst years, with its value against the dollar rising by approximately 500%,reaching 89,560 pounds per dollar on the parallel market. This devaluationaligns with International Monetary Fund (IMF) requirements to address Lebanon’sbanking and economic crises.
In May 2024, the IMF highlighted those policies implementedby the Ministry of Finance and the Central Bank, including phasing out budgetfinancing, scrapping the "Sayrafa" exchange platform, adoptingtighter fiscal policies, and unifying exchange rates, helped stabilize thepound, curb inflation, and contain monetary supply pressures.
Iranian Rial: Once the weakest currency in the world, theIranian rial now ranked third, reflecting the enduring impact of US sanctionsfollowing the collapse of the 2015 nuclear deal.
In 2024, the rial weakened marginally by 0.21% against thedollar, 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 amongthe world’s weakest currencies, largely due to restrictions on foreign exports,which also saw a decline in volume. In response, Vietnam’s central bankdevalued the currency to boost export competitiveness.
Over the past year, the dong weakened 4.46% against thedollar, closing at 25,460 dongs per dollar.
Sierra Leonean Leone: Ranked fifth, Leone is impacted byhigh debt levels, inflation, slow economic growth, and the lasting effects ofhealth 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 weakestcurrency globally, is facing challenges such as high inflation, slow economicgrowth, and mounting external debt.
In 2024, the kip depreciated by 6.44%, with the dollartrading at 21,820 kips.
Indonesian Rupiah: Indonesia’s dependence on imported goods,including crude oil, made it highly vulnerable to global inflation, driving upcosts and exacerbating the country’s trade deficit.
The rupiah came seventh, as weakened by 4.86% against thedollar in 2024, closing at 16,220 rupiahs per dollar.
Syrian Pound: Despite slight improvements in late 2024following the fall of Bashar al-Assad’s regime, the Syrian pound ranked eighth amongthe weakest currencies, trading at 13,000 pounds per dollar. The prolonged14-year conflict has left devastating effects on Syria’s economy.
Uzbekistani Som: Ranked ninth, the Uzbek Som continues toface challenges, including high unemployment, inflation, sluggish economicgrowth, 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, hasstruggled since the political conflicts of the 1990s, weakened by militaryunrest 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 11thrank. It suffers from ongoing inflation, unemployment, corruption, andcounterfeit 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.
