The Cheapest Currency in the World for 2021
As of the exchange rates monitored on September 9, 2021, the Venezuelan bolívar is recognized as the cheapest currency globally. It is important to note that ranking currencies based on their value can be challenging and often unfeasible due to the fluctuating economic conditions worldwide, which continually alter currency values.
The Venezuelan bolívar is represented by the symbol (VES). To illustrate its depreciated value, one US dollar is equivalent to 4,000,815 Venezuelan bolívars, while one euro equals 4,745,513 bolívars. Consequently, it can be asserted that Venezuela’s currency is indeed the lowest in value in comparison to relatively stable currencies.
Reasons Behind the Decline of the World’s Cheapest Currency
The decline in the value of the Venezuelan bolívar can be traced back to the severe economic turmoil experienced globally during the COVID-19 pandemic, resulting in unprecedented inflation issues by 2020. The situation continued to deteriorate into 2021. Furthermore, to alleviate the problem, the Central Bank of Venezuela introduced the following banknotes:
- 200,000 Venezuelan bolívars
- 500,000 Venezuelan bolívars
- 1,000,000 Venezuelan bolívars
The depreciation of the bolívar has been evident since 2018 when the currency underwent a complete overhaul amid rising inflation rates, which reached 830%. At that point, one dollar was valued at approximately 248,487 bolívars.
The Ten Cheapest Currencies in the World
Several countries are facing economic setbacks, leading to depreciation in their currencies. However, the pace of these changes is rapid and ongoing, making it difficult to provide a definitive ranking of the cheapest currencies. Nonetheless, the following currencies are among the least valuable:
- Iranian Rial
The Iranian rial has suffered significant devaluation due to various historical events, including the Iran-Iraq War and ongoing nuclear tensions.
- Vietnamese Dong
The Vietnamese dong is classified as one of the cheapest currencies globally, although many economic experts predict future growth for this currency.
- Indonesian Rupiah
Despite Indonesia’s overall economic progress and stability, the Indonesian rupiah remains one of the least valuable currencies, with considerable efforts being made to improve its status; however, substantial changes are not guaranteed at this time.
- Guinean Franc
The Guinean franc is facing significant inflation rates that lead to a continual drop in its value. Interestingly, Guinea is rich in natural resources like gold and diamonds, yet the local population experiences severe poverty.
- Kip in Laos
This currency has always been of low value, having been introduced at a minimal price.
- Leone in Sierra Leone
The Leone suffers from repeated depreciation due to the country’s low economic and developmental standards.
- Uzbek Som
The exchange rate for one US dollar typically fluctuates between 8,000 and 8,150 Uzbek soms, indicating a relatively fixed value.
- Guarani in Paraguay
Paraguay is the second poorest nation in South America and continually endures economic setbacks that negatively affect its currency.
- Cambodian Riel
The Cambodian riel serves as the secondary currency to the Indochinese piastre and has maintained a low exchange rate since its introduction.
- Ugandan Shilling
The Ugandan shilling was originally divisible into 100 cents but has since evolved to become the smallest denomination used in the country.