The cheapest currency in the world (16 photos). What is the cheapest currency in the world? What is the cheapest currency now?

As you know, money is a specific, maximally liquid commodity, which, in turn, acts as a universal equivalent of the cost of other goods and services. Today there are about 180 currencies in the world. These are monetary units with different purchasing powers and different exchange rates.

The question: what is the cheapest currency in the world is of interest to us rather as a statistical indicator. That is, no matter how much this or that paper unit depreciates, in general, in any case, its value will always be within a certain range.

However, if for some reason there is inflation of a currency, then it is very likely that cheaper money will become much more valuable. At the same time, all this does not apply to the cheapest currency in the world, since it itself is at the very end of the ranking.

A little history

It is easy to understand that money is a very changeable commodity, which, in turn, has been constantly changing throughout its existence, and right up to the present day. At the same time, each editing of money concerned both the value and appearance of the currency, and its significance.

Finding out how and when money appeared will be useful to all people working in financial fields. This, in conclusion, will make it possible to understand what the weakest monetary unit in the world is.

1944

From the time people began actively printing paper (and metal, but not precious metals) money until 1944, the “gold standard” was used to value currencies. In 1944, in Bretton Woods (a resort town in the USA), the “gold standard” system resigned and was replaced by a new system that equated the US dollar to gold, which made American money an international means of payment.

In addition, based on the Bretton Woods agreements, international financial institutions were established:

• IBRD - International Bank for Reconstruction and Development;
• IMF - International Monetary Fund.

These financial enterprises operate successfully today. The only thing that has changed is that these two institutions have become even more important for the global sphere of finance, since in the modern world money solves literally any problem. We can say that it was the Bretton Woods agreements that formed the basis of the global financial market.

1978

In 1978, the second amendment to the Bretton Woods agreements was adopted, which legalized the regime of floating exchange rates. From this moment on, rates are formed exclusively by the market and are not directly linked to gold or any other means of payment.

Of course, when assessing the value of any monetary unit, the gold and foreign exchange reserves of the state are taken into account.

The floating exchange rate regime has somewhat complicated the calculation and, even more so, forecasting of exchange rates.

If you look at the financial state of each individual state, especially the large countries of the world, it becomes clear that due to the domestic currency used, some countries have a smaller budget than others. At the same time, each monetary unit has its own value rate, which increases or decreases in relation to the US dollar due to certain factors.

Today

To date, the situation with exchange rates in the world has not changed radically. In every civilized state, the entire budget has a unique value, corresponding to the dollar.

The only possible change is possible, according to forecasts, in 2017, when a truly large-scale collapse of the dollar occurs. In this regard, the value of other currencies, including the Russian ruble, will significantly increase.

It is extremely difficult to say for sure what the cheapest currency in the world will be at the moment. However, now you can easily find the top 10 cheapest currencies in the whole world on the Internet.

Rating – 10 cheapest

In order to understand what a particular monetary unit is, it is recommended that you familiarize yourself with the top 10 cheapest currencies from around the world. By the way, you should not be surprised that in this top you most likely will not find money that is widely known to you, for example, the ruble or dollar, since these units have an increased value, unlike those presented.

• Rial;
• Dong;
• Dobra Sao Tome and Principe;
• Rupee;
• Ruble (Belarusian);
• Franc;
• Guarani;
• Tugrik;
• Shilling.

Each currency is tied to a specific country and has unique features, regardless of cost.

When getting acquainted with this top, do not forget that the cost of each named currency unit is extremely relative. That is, at the time you read the article, the value of a particular hard currency may change beyond recognition. And although it is almost impossible to increase the value of any money from this top, this should not be translated into an absolute.

Iranian rial (IRR)

It is strange to see a Middle Eastern currency on the list of the cheapest money in the world. Its neighbors are the monetary units of such states as:

• Kuwait;
• Bahrain.

These hard currency currency are at the top of the world list of expensive money. Iranian rial is the cheapest money. This is one of the most ancient monetary units on the planet.

Issued into circulation in 1798 as the national currency of Persia, since 1932 - the main money of Iran. The main reason for such cheapness of the national hard currency is the fact that Iran makes all payments for exported oil in US dollars.

1 Russian ruble costs 752 rials.

Vietnamese dong (VND)

The name itself means “Copper”. It was put into circulation in 1978, after the unification of South and North Vietnam.

Today 1 dong costs 0.0016 Russian rubles. One ruble can buy 625 dong.

The average Russian pensioner is a Vietnamese millionaire. This value of the currency is explained, first of all, by the weakness of the Vietnamese economy, which only stabilized and began to develop in the last decade.

Dobra Sao Tome and Principe (STD)

This Central African country is a leading supplier of coconuts and coffee. The national currency was put into circulation in 1977.

Good rate = 0.00189 rubles, i.e. 1 ruble=529 STD

Indonesian Rupiah (IDR)

Indonesia is the largest Muslim country. The island of Bali has long been a favorite holiday destination for tourists from all over the world. Such a rapid development of the tourism business in Indonesia is, not least, explained by the weakness of the national currency.

1 ruble = 340 rupees.

Laotian kip (LAK)

It was introduced into circulation in 1955.

1 ruble = 238 Kip.

Belarusian ruble (BYR)

It was introduced into circulation after the collapse of the Soviet Union and today is the cheapest currency of the republics of the former USSR. The Belarusian monetary unit is highly dependent on its “big brother” the Russian ruble.

1 Russian ruble is equal to 300 Belarusian rubles.

Guinean franc (GNF).

Another “misunderstanding” is this list. Diamonds and gold are mined in the country, and money is one of the cheapest in the world. As in the case of the Iranian currency, this is explained by the fact that the national hard currency is practically not used in international payments.

Today, 1 Russian ruble costs 204 Guinean francs.

Paraguayan Guarani (PIG)

Paraguayan money is naturally on the list of the cheapest currencies in the world. Paraguay's economy has been in a state of depression for a long time. It has one of the highest rates of unemployment and poverty in the world.

1 Russian ruble costs 125 guarani.

Mongolian Tugrik (MNT)

Translated as “circle” or “coin”. In circulation since 1925.

Today the Russian ruble is worth 53 tugriks

Somali Shilling (SOS)

It is symbolic that even the abbreviation of the Somali currency is associated with a maritime disaster. Long gone are the times when privateering significantly strengthened the economy of a pirate state.

The Somalis were several centuries late and therefore today their currency is cheap and extremely unstable.

The Russian ruble is worth up to 15 Somali shillings.

Conclusion

A cheap currency is typical for economies that do not demonstrate dynamic growth and, moreover, have one distinct specialization. Eg:

• Iran is an oil-producing (not even oil-refining) industry;
• Indonesia - tourism.

Also, the low value of a currency often indicates that this monetary unit is in little demand on the world market. This means that the external economic activity of such a country is served by the hard currency of another state. Most often this is the US dollar, which until recently was the only currency used to pay for oil and petroleum products.

It is difficult to unambiguously answer the question of what a monetary unit should be - expensive or cheap. Even tracing a clear relationship between the value of a currency and the state of the economy is not easy. For example, the most dynamically and systematically developing economies are based on hard currency in the middle price segment (i.e., not the most expensive and not the cheapest). At the same time, the currencies of the two leaders in global oil exports are at opposite poles of the rating:

• The Iranian rial is the cheapest currency;
• The Kuwaiti dinar is the most expensive hard currency against the dollar.

Obviously, the value of money is not directly related to its reliability. And in order for the economy to develop dynamically and in a multi-vector manner, thereby insuring itself from crises, the currency must be stable and the state’s financial policy flexible.

Notes

Do not forget to get acquainted with modern exchange rates yourself, using special services on the Internet.

Don’t forget that there has always been and will be the cheapest money in the world. However, the global financial situation is constantly changing, because of which, already in 2017, the rates of all currencies in the world may change radically, since according to the forecast, the dollar should collapse soon.

Although the cheapest currencies in the world are profitable in relation to the ruble, you will be able to make a lot of money from this. In any case, everything comes down to dollars, in comparison with which, today, even the ruble is inexpensive.

Video

These currencies are leading, or rather the countries that issue them.

Surely most of the readers immediately remembered the Belarusian ruble and its disproportionately low exchange rate. However, as it turned out, the ruble of the Republic of Belarus is far from the cheapest currency in the world. In addition, since July 1, 2016, the currency of Belarus went through another redenomination, after which it reduced the three zeros and began to look less deplorable.

The list of the cheapest currencies changes daily and it is quite difficult to establish definitely who is now leading among the cheapest world currencies, since the economic situation in countries, and throughout the world, is changing dramatically.

However, a certain sequence and list of devalued national currencies can be identified, so let’s look at the 10 cheapest currencies in the world in relation to the ruble and dollar.

The rate is fixed at 12.12.2019 .

#1 – Iranian Rial (~114,000 IRR/USD)

Currency code - IRR.

Iranian rial exchange rate:
1 USD = ~114,000 IRR(Dollar to Iranian rial – black market).
1 USD = 42,090.05 IRR(Dollar to Iranian rial - official exchange rate).
1 RUB = 669.17 IRR(Ruble to Iranian rial).

The Iran-Iraq War, attacks on Israel, and the threat of nuclear weapons to literally the entire world from the Iranian government led to the imposition of a number of restrictive economic and political sanctions on the country by the world's superpowers. These measures, in particular, restricting access to the world commodity market, led to a significant deterioration in the economic situation in the country.

Iran, being an oil country, was no longer able to supply its goods to the world stage, as a result of which it received a significant budget deficit.

For these reasons, cheapest currency in the world– Iranian rial.

Since 2016, the US and EU have been alternately lifting some sanctions on Iran, which should lead to an improvement in the economic situation and possibly stabilization of the national currency.

#2 – Venezuelan Bolívar (44,000 VES/USD)

Currency code - VES(old code – VEF).

Venezuelan bolivar exchange rate:
1 USD = 44,498.65 VES(Dollar to Venezuelan Bolivar).
1 RUB = 707.70 VES(Ruble to Venezuelan Bolivar).

The Venezuelan bolivar is the currency with the highest inflation rate.

The denomination took place on August 20, 2018. The main reason for the redenomination was hyperinflation of about 830,000%.

Before the redenomination, $1 was worth ~248,487 VEF. Old banknotes were replaced with new ones at a ratio of 1 new VES to 100,000 old VEF.

The “Petro” cryptocurrency was created by the government to “fight the US dollar”, but this only accelerated the level of hyperinflation because the government itself determines the value of the dollar at its own whim.

#3 – Vietnamese Dong (Vietnamese Dong) (23,187 VND/USD)

Currency code - VND.

Vietnamese dong exchange rate:
1 USD= 23,187 VND(Dollar to Vietnamese dong).
1 RUB= 368.42 VND(Ruble to Vietnamese Dong).

The third weakest currency in the world is the Vietnamese Dong.

Vietnam is going through a difficult stage of restructuring from a centralized economy to a market economy, so at the moment the country's currency is practically worthless.

Experts say the Vietnamese government is on the right track and could soon catch up with its closest Asian neighbors.

#4 – Indonesian Rupiah (13,995.73 IDR/USD)

Currency code - IDR.

Indonesian Rupiah exchange rate:
1 USD = 13,995.73 IDR(Dollar to Indonesian Rupiah).
1 RUB = 222.51 IDR(Ruble to Indonesian Rupiah).

Indonesia is an economically stable and developed country in Southeast Asia, however, the country's currency has a very low value. The country's regulatory authorities are taking all measures to strengthen the national currency, but at the moment these attempts are leading to only minor changes.

#5 – Sierra Leonean Leone (9,711.13 SLL/USD)

Currency code - SLL.

Sierra Leonean exchange rate:
1 USD = 9,711.13 SLL(Dollar to Sierra Leonean Leone).
1 RUB = 154.38 SLL(Ruble to Sierra Leonean Leone).

Sierra Leone is a very poor country in Africa that has experienced many serious trials, which has affected the value of the local currency. Recently, there was a war in the state, and recently the deadly Ebola fever dominated the country.

#6 – Uzbek Sum (Uzbek Sym) (9,536.16 UZS/USD)

Currency code - UZS.

Uzbek som exchange rate:
1 USD = 9,536.16 UZS(Dollar to Uzbek sum).
1 RUB = 151.59 UZS(Ruble to Uzbek sum).

By decree of the President of the Republic of Uzbekistan, on July 1, 1994, the modern Uzbek soum was introduced into circulation with a ratio of 1 soum to 1000 soum coupons.

As a result of the liberalization of monetary policy, from September 5, 2017, the exchange rate of the soum against the US dollar was set at 1 US dollar = 8100 soums with an estimated range of 8000-8150 soums per 1 US dollar.

#7 – Guinean Franc (9,515.39 GNF/USD)

Currency code - GNF.

Republic of Guinea Franc exchange rate:
1 USD = 9,515.39 GNF(Dollar to Franc of the Republic of Guinea).
1 RUB = 150.88 GNF(Ruble to Franc of the Republic of Guinea).

Due to high inflation, progressive poverty and thriving banditry, the currency of the African country of Guinea has a very low exchange value.

Given the rich natural gifts of gold, diamonds and aluminum, the currency of a given country should have a much higher value.

#8 – Lao or Laotian Kip (8,849.12 LAK/USD)

Currency code - LAK.

Laotian kip rate:
1 USD = 8,849.12 LAK(Dollar to Lao Kip).
1 RUB = 140.75 LAK(Ruble to Lao Kip).

The Laotian Kip is the only currency on this list that has not been devalued, but was originally issued with a significantly low value. In addition, since its release in 1952, the currency has even strengthened against the dollar and continues to improve its performance to this day.

#9 – Paraguayan Guarani (6,428.58 PYG/USD)

Currency code - P.Y.G..

Paraguayan Guarani rate:
1 USD = 6,428.58 PYG(Dollar to Paraguayan Guarani).
1 RUB = 102.24 PYG(Ruble to Paraguayan Guarani).

The second poorest South American country, Paraguay, is in a catastrophic economic situation - inflation, corruption, low education, a huge number of people living below the poverty line, lack of jobs, etc.

Paraguay exports cotton and soybeans, but this is hardly enough to feed the country.

#10 – Cambodian Riel (4,042.79 KHR/USD)

Currency code - KHR.

Cambodian riel exchange rate:
1 USD = 4,042.79 KHR(Dollar to Cambodian riel).
1 RUB = 64.29 KHR(Ruble to Cambodian Riel).

The Cambodian riel is the currency of the monarchical state of Cambodia in Southeast Asia.

The currency was introduced in 1955 to replace the Indochinese piastre. The riel was initially a low-value currency and was not popular even with local residents who decided to prefer foreign currencies.

Most Cambodians today prefer to use the American dollar as their payment currency, which further worsens the position of the national currency.

Currencies that have undergone denomination or left the TOP 10

Redenomination is a change in the face value of banknotes, usually after hyperinflation, to stabilize the currency and simplify payments.

During redenomination, old banknotes are exchanged for new ones, which, as a rule, have a lower denomination.

Due to this, some currencies left the above list.

Sao Tomean Dobra

Currency code - STD.

Course of Good Sao Tome:
1 USD = 22,691 STD(Dollar to Dobra Sao Tome before denomination).

On January 1, 2018, a denomination was carried out in the country: 1000 old good (STD) were equal to one new (STN).

Two small islands in western Africa - Sant Tome and Principe - are mainly engaged in the supply of cocoa, coffee and coconuts, which is clearly not enough to maintain the country's economy at the proper level.

Oil fields have recently been discovered on the island of Sao Tome, so perhaps Dobra will soon be able to strengthen significantly.

Belarusian Ruble

Currency code - BYR.

Belarusian ruble exchange rate:
1 USD = 20,846 BYR(Dollar to Belarusian ruble before denomination).

After the denomination on July 1 in Belarus, until the end of 2016, banknotes of the 2000 and 2009 samples were in parallel circulation and were mandatory for acceptance when making all types of payments without restrictions. Since the beginning of 2017, Belarus has completely switched to new banknotes.

In Belarus, the procedure for exchanging old-style banknotes has been determined. Old money can be exchanged for new ones at the National Bank, banks and non-bank financial institutions of the Republic of Belarus from January 1, 2017 to December 31, 2019 inclusive.

From July 1, 2020 to December 31, 2021 inclusive, banknotes will be exchanged only at the National Bank of the Republic of Belarus.

Ugandan shilling (3,673.02 UGX/USD)

Currency code - UGX.

Ugandan shilling exchange rate:
1 USD = 3,673.02 UGX(Dollar to Ugandan shilling).
1 RUB = 58.41 UGX(Ruble to Ugandan Shilling).

In 1966, the Ugandan shilling first appeared and replaced the East African shilling. The latter was the official means of payment in Kenya, Uganda, Tanganyika and Zanzibar.

The following banknotes are in circulation: 1,000, 2,000, 5,000, 10,000, 20,000 and 50,000.

The Ugandan shilling is a relatively stable currency. Over the past few years, its value has decreased by no more than 5%.

Why are currencies getting cheaper?

In most cases, government currencies become cheaper due to the difficult economic situation in the country. This leads to increased inflation and balance of payments deficits.

This may be a consequence of various unfavorable situations for the country’s economy, such as: military operations, a decrease in GDP, depreciation of raw materials that served as the basis for exports, a drop in the purchasing power of the population, tightening of credit programs, political instability in the country, etc.

Devaluation (currency depreciation) is often associated with improperly organized monetary policy of the country's leadership and corresponding decisions of regulatory bodies (national banks).

The main economic indicator of the state is the exchange rate, which is in constant dynamics under the influence of many factors. Thus, the decrease in the value of the national currency is influenced by:

High inflation in the state;

Unemployment;

Lack of balance between imports of goods and exports;

Unfavorable political situation.

The presence of all of the above factors in a country leads to the fact that a larger amount of national currency is required to purchase foreign currency. This, in turn, entails a loss of confidence of the local population in the state currency. There are countries all over the world whose currencies are recognized as the cheapest in relation to the US dollar. In this article, we will look at the ten cheapest exchange rates and find out which currency is cheaper than all the others.

So, let's start with the last, tenth place, which was taken by the Colombian peso. If Colombians want to purchase a certain amount of US dollars, then 1 dollar will cost them 3,070 pesos. The predecessor of this currency is the Spanish peso, which was introduced into South America in the Middle Ages in connection with the appearance of the Spaniards in the state. The country is constantly in a difficult economic situation, which, in the end, caused the loss of the gold component, and after some time the silver component was also lost. Thus, money ceased to be backed by precious metals, and, therefore, ceased to be convertible. One peso is equal to 100 centavos, but this name can only be found in official documents. In fact, there is no centavo in everyday life due to the depreciation of the main currency.

Ninth place belongs to the Cambodian riel with a value of 4072 units per 1 US dollar. Currency first appeared in Cambodia in 1955. The currency was reintroduced in the state in 1980, however, it never gained popularity. Money was abolished in the country in the 1970s, after which they began to pay for goods and services in rice, as well as Thai and Vietnamese money. However, Cambodians prefer to pay with American money. National banknotes are used as currency for the dollar, euro and pound. It only takes one day to change the riel exchange rate. Tourists coming to Cambodia exchange dollars for riel in very small quantities, since it is impossible to change back.

In eighth place is the Paraguayan Guarana. 1 dollar can be purchased for 5678 guarana. The predecessor currency of the guarani was the peso, which was in use until 1944. The name of the new currency comes from an Indian tribe that lived in Paraguay before it was captured by the Spaniards. The national currency of Paraguay has depreciated as a result of huge inflation, which has led to the fact that coins up to 10 guarani have become so cheap that they are almost never seen in everyday life. Of course, history played a role in the depreciation of the Paraguayan currency. After all, the country was constantly fighting civil wars, changes in power happened one after another, as a result of which the country found itself on the verge of poverty. During the entire existence of the Paraguayan guarani, there were two attempts by the state government to re-denominate the currency, however, after this there were no improvements, but on the contrary - the situation worsened even more, the currency completely depreciated. The last issue of Paraguayan government money was made at the Slovak mint.

An honorable seventh place, occupied by another cheap currency, is occupied by the Guinean franc. If you try to buy 1 dollar for it, you will have to spend as much as 7358 Guinean francs. The currency is national in Guinea. It was introduced in 1960. This event was a step towards state independence, as well as getting rid of regional money. Three years after the introduction of Guinea's national currency, reform was carried out because a large number of counterfeit bills were discovered in the country. In 1972, changes occurred in the country again, which consisted of replacing the franc with a new unit - the force, which depreciated 14 years later. After this, the franc returned to use. Despite the fact that the franc is the cheapest currency, it is a unique banknote, since absolutely all franc banknotes do not contain any images of politicians, national figures, or any male portraits. All francs feature portraits of smiling women in national headdresses.

The Laotian kip is recognized as an even cheaper currency. 1 dollar can be purchased for 8116 Laotian kip. Despite the fact that the currency was introduced in 1955, banknotes appeared in use only in 1957. In the same year, the war that unfolded in Laos was ended. 60 years have passed since the end of the war, however, during its course such economic damage was caused that the country still cannot restore industry and infrastructure, and the currency continues to depreciate. Thus, coins in everyday use are a huge rarity, since they have completely lost their value, with the exception of collectors.

The Indonesian rupiah ranks fifth in the ranking of cheap currencies in the world. One dollar can be purchased with 13,614 rupees. The currency appeared in 1945 as a result of the end of the War of Independence. For four whole years, the Indonesian rupiah, along with the Dutch guilder and the Japanese rupiah, was in use. However, due to inflation in 1965, the rupee was reissued. The rupee exchange rate fell sharply due to the financial crisis that occurred in Asian countries. This was a fatal event for the Indonesian rupiah, as it was never able to recover from the crisis.

The fourth place is given to the Belarusian ruble with a price of 19,775 units per 1 US dollar. The Belarusian ruble was introduced as the national currency in the state after Belarus gained independence in 1993. He experienced denomination twice - in 1994 and 2000. The first denomination was 10 times, and the second - 1000. Until 2014, the ruble to dollar ratio was stable, but the rate began to creep down after the fall of the Russian ruble.

The Sao Tome and Principe Dobra is one of the top three most valuable currencies in the world. $1 buys 1,975 units. The currency was introduced by a Portuguese bank in 1977, since the island was a Portuguese colony. The export of cocoa beans is the main economic component of the country. However, drought, which lasted for several years in a row, caused a significant decrease in the amount of cocoa beans sold. As a consequence, the country became insolvent. Over the past ten years, the republic has not paid its external debt.

“Silver” belongs to the Vietnamese dong, which took second place in the ranking. With 22,423 Vietnamese dong you can buy 1 US dollar. It became the national currency after the country's liberation from France in 1945. The currency depreciated as a result of numerous issues and devaluations that accompanied the dong throughout its existence.

And finally, the cheapest currency in the world is the Iranian rial. It is he who holds the palm among all other currencies. When buying 1 US dollar you will have to pay 30,366 rials. Despite this ratio of its exchange rate to the dollar, the value of the rial continues to decline. This situation was a consequence of internal inflation in the state, as well as international sanctions that were imposed on Iran. The first collapse of the Iranian currency occurred in 2002, when the United States declared Iran a source of a nuclear threat, thereby dooming it to economic isolation. The country's foreign currency reserves have decreased significantly, and, as a result, the national currency has suffered severe damage. The rial experienced another decline in 2012, when its position was undermined by the distrust of the local population. By the way, until now, Iranian residents prefer to keep their cash savings in foreign currency.

The more money you have, the better. This is the opinion of a significant part of the world's population. However, this does not mean at all that if you have millions in your hands, then you are rich. It all depends on what currency these millions belong to. So in the country of Zimbabwe, almost every resident had banknotes worth 100 trillion Zimbabwean dollars at home, but it was almost impossible to buy anything with them. This currency is considered the cheapest in the world.

Today, this cheapest currency in the world has been completely withdrawn from circulation. The ban on using one's own banknotes in settlements came into force in 2009 on June 30. The reason for this was the collapse of the Zimbabwean economy, which experienced several currency devaluations. In 2008, inflation growth reached a record level for global economic practice of 231 million%. And this is only official data. Other unofficial sources claim that inflation has reached an incredible 6.5 quinquatrigintillion percent.

A little about the fall of the Zimbabwean economy and the fate of the Zimbabwean dollar

In 1980, Zimbabwe declared itself an independent state. And a year later it introduced its own currency – the Zimbabwean dollar. It was offered to the population as an alternative to the banknotes of another state that were in circulation at that time - the Rhodesian dollar.

At that time, the state of Zimbabwe was considered one of the most developed and successful among others located in Africa. Fields were cultivated, crops were harvested, and the products grown were effectively exported abroad. The main export goods were tobacco, tea, cotton and sugar cane. In addition, wheat and corn fields were cultivated here, as well as vegetables for the domestic market.

21.6% of the country's GDP came from industry (processing of agricultural goods, tobacco and textile factories, production of car batteries). Minerals, including gold and diamonds, were mined on a large scale in Zimbabwe.

True, the local black population, despite the economic development of the country, remained below the poverty line. All profits were received by white-skinned farmers - owners of developed farms. This fact inevitably led to clashes of interests of different sectors of society, the coming to power of the new Mugabe government, and reforms that were disastrous for the country’s economy. In just 8 years (2000-2008), the country turned into an importer of necessary food products and the poorest state on the continent.

The Zimbabwean dollar is only a souvenir

In 2009, Zimbabwe's own currency depreciated so quickly that commodity prices rose throughout the day. Taking into account the current crazy inflation, we can give the following example: in the middle of the day, a standard can of cola in a store cost 100 billion Zimbabwean dollars, and after a few hours it was impossible to buy it for less than 150 billion dollars.

The government decided to stop using the national currency, by that time already the cheapest in the world, and to carry out all payments in the harder currencies of neighboring countries and American dollars. This step turned out to be life-saving, and Zimbabwe’s economy slowly began to rise, although the country still maintains its position as one of the most backward states on the African continent.

And banknotes of the Zimbabwean dollar, this cheapest currency in the world, today can only be brought back from a trip to this country as a souvenir. Tourists and collectors are happy to purchase this symbol of an unprecedented economic crisis.

The exchange rate of the national currency of any state is of particular importance for determining its economic potential and level of development. That is why one of the main goals of the government is always to strengthen, stabilize and increase the exchange rate of the national currency.

According to the latest IMF data, the volume of the US dollar in the world's gold and foreign exchange reserves is more than 60%. Today it is the most durable reserve currency. That is why almost all exchange rates are determined in relation to the dollar.

But it is not always possible to maintain the course at the desired level. In some countries, the purchasing power of the monetary unit is falling so rapidly that people are forced to receive salaries every day so that they can buy at least something with this money, which will completely depreciate in a day.

There can be many reasons for inflation: political instability, military conflicts, incorrect government policies. Many factors can contribute to a rapid decline in the national exchange rate, but the result will be unchanged.

Those countries whose currency can be bought inexpensively often live below the poverty line. Almost all of these countries are underdeveloped, with a deplorable state of social guarantees, level of education and medical care. This once again confirms that the exchange rate is not just one of the formal factors, but a real indicator of the standard of living of the population.

Cheapest currency

As of 2017, the cheapest currency in the world is the Iranian rial. At the moment, its rate is 30,366 rials per 1
U.S. dollar. At the same time, the trend continues to remain negative. Since 2002, inflation has been growing rapidly. Now the rial also continues to depreciate at a rapid pace. The reason is the crisis state of the national economy. This is due to the fact that many sanctions have been imposed on Iran.

These sanctions were provoked by the fact that the United States in 2002 publicly accused Iran of being the main source of nuclear weapons and, as a result, a threat to the whole world. If we continue to degrade the exchange rate at this rate, this will lead to even more disastrous consequences. According to the general opinion of many experts, the poorest countries in the world do pose a potential danger to developed countries. That is why so much money is often allocated to support their economy.

Based on the above data, we can easily conclude that we can safely draw an equal sign between the ratings of cheap currencies and the poorest countries.

According to the latest data, the top 10 cheapest currencies in the world are headed by the Iranian rial, but the other 9 participants in the ranking are not far behind. This list includes countries such as:

1. The good of Sao Tome and Principe. The rate is 21975 units for 1 dollar. Previously, this state was a colony of Portugal. The currency was artificially introduced into circulation specifically for this island country. But gradually the economy declined due to climate problems. Now the country simply has nothing to pay its external debt, and they are forced to import all products and raw materials from other countries.
2. Vietnamese dong. 22423 units give for 1 dollar according to the latest data. The currency has existed since 1945. Due to numerous issues, as well as a significant link to the Chinese economy, which is not interested in the rise of Vietnam, the currency is gradually depreciating and does not have positive forecasts for exchange rate dynamics.
3. Belarusian ruble. Very often its exchange rate is tied to the Russian ruble. But if we express it in equivalent to the US dollar, then for 1 dollar they ask for almost 20 thousand Belarusian rubles. The reason is that this is a fairly young currency, and also too tied to the Russian ruble - due to its fall, the Belarusian national currency is also losing ground.
4. Indonesian rupiah. The rate reaches 14 thousand monetary units per 1 US dollar. The country was never able to fully recover from the global Asian economic crisis. Also, many issues had a negative impact on the exchange rate of the currency.
5. Laotian Kip. More than 8 thousand kip need to be paid for 1 dollar. The exchange rate is constantly falling at a rapid pace. For this reason, coins have long ceased to be issued completely, since they are valuable only for collectors, and as a monetary unit they do not represent any value. Their nominal value is much lower than the actual cost of production.
6. Guinean franc. Initially, this was an attempt to completely gain independence by abandoning the circulation of the regional currency. In fact, almost 8 thousand monetary units need to be given for a dollar.
7. Paraguayan guarana. Almost 6 thousand per dollar. Many civil wars, a series of reigns of dictators who absolutely did not know how to conduct economic affairs led to the fact that the country has long been below the poverty line. The reason for this was primarily military conflicts, political instability and widespread devastation.
8. Cambodian riel. More than 4 thousand units per dollar. If the dollar is exchanged for a local currency, it is unlikely to be converted back. Riels never became popular even among local residents. For a long time, they preferred to give up money altogether, using rice to make payments among themselves. Recently, Cambodians prefer to use American dollars, and riel serve only as change coins for dollars and euros. Inflation reaches such terrible rates that the exchange rate can change dramatically several times in a day.
9. Colombian Peso. More than 3 thousand pesos per dollar. The reason for such a high level of inflation is the protracted and serious financial crisis in the state. The peso gradually completely lost its gold and silver components. It is precisely because the peso is not backed by anything that it is constantly losing its position. In fact, money has virtually no purchasing power.