Top 5 Lowest Currencies in The World 2023 - Cheapest Currencies in The World 2023

The common feature of currencies such as Iranian Rial, Indonesian Rupiah, Vietnamese Dong, Zimbabwe Dollar and Venezuelan Bolívar is that the currencies of these countries have depreciated or been undervalued.

1. Zimbabwean Dollar

The Zimbabwean dollar was characterized by hyperinflation in 2008 and 2009, with its exchange rate reaching millions of Zimbabwean dollars to one dollar.

2. Iranian Riyal

The Iranian Riyal suffers from high inflation, which has led to a decline in its value against foreign currencies.

3. Venezuelan Bolivar

Venezuela is facing major economic problems, which has led to the loss of its currency, and thus its devaluation.

4. Vietnamese Dong

The Vietnamese dong has a low value against the US dollar.

5. Indonesian Rupiah

The Indonesian rupiah faces high inflation and is considered one of the least valuable currencies in the world.

Why the currencies of some countries in the world become worthless can be the result of many complex factors. Here are some of these factors:

1. High Inflation:

High inflation can quickly devalue a country's currency. Factors such as a rapid increase in money supply, insufficient production to meet demand, economic uncertainty and policy errors can cause inflation to rise.

2. Insufficient Reserves: 

The fact that countries do not have sufficient foreign exchange reserves can create an inability to maintain the value of their currencies. Foreign exchange reserves are foreign currency assets used in international trade and payments.

3. Political Uncertainty:

Political instability and uncertainty can shake the confidence of investors and foreign exchange markets. Political turmoil and instability can cause the currency to depreciate.

Depreciating currencies, along with high inflation, can lead to increased costs of goods and services and economic difficulties. Therefore, many countries take various policy measures to keep their currencies stable.