Cheapest Currency in the World: A Look at the Lowest Exchange Rates

While international travel is on everyone's mind, especially for Indian travelers and students, one of the prime considerations would be the exchange rate between the INR and the currency of your destination since a strong Rupee can really stretch your travel budget. Knowing the world's lowest currencies may help you decide on destinations where your money stands firmer. Whether you're a student looking to study abroad or just a traveler looking for new horizons, knowing about the world's cheapest currencies will help in keeping up your financial planning.

In this blog post, we take a look at what drives the low value of a currency, which countries boast the most competitive exchange rates, and how to make every cent count toward your travel budget.

What Drives the Value of a Currency?

Realizing that, let's go ahead and identify the factors which may compromise the value of a currency before we take a look at the cheapest countries in the world. Now, several economic factors make one currency strong or weak. These include:

1. Inflation Rates: Mostly, high inflation rates in a country devalues the currency. When purchasing power decreases, the value of the money goes less than that of other currencies.

2. Political Stability: If the country is politically unstable, most likely the currency would be devalued. Investors enjoy stable environments, whilst uncertainty, especially capital flight, takes the value of the currency down.

3. Interest Rates: Higher interest rates provide higher return on investments for the particular currency and therefore tend to appreciate it. Low interest rates may make the currency lose its purchasing power.

4. Trade Balance: A country with a large trade deficit, that is, one which is importing more than it is exporting, will usually have its currency weakened. This is because, on the supposition, to be able to buy foreign goods, one needs to sell its own currency more into the market, hence increasing supply and reducing its value.

5. Foreign Exchange Reserves: Countries that maintain large amounts of foreign exchange reserves can prop up the value of their currencies. Those countries with meager levels of foreign exchange reserves have a weakened currency.

Top 10 Cheapest Currencies in the World

As of 2024, there are several countries with economic turmoil resulting in their currencies being the lowest in the world. This is a look at some of the weakest currencies:

1. Iranian Rial (IRR)

The Iranian Rial has the status as the lowest currency in the world. This situation is due a great deal to decades of economic sanctions, high inflation, and political instability. The economy of Iran has taken a toll from international pressure, coupled with the heavy devaluation of the Rial. Going into 2024, based on Google Finance, the exchange rate of the Iranian Rial to the Indian Rupee is about 1 Iranian Rial equals 0.0020 Indian Rupee as of 9 Aug, 4:56 pm UTC. This makes IRR to be the lowest currency in the world.

2. Vietnamese Dong (VND)

The Vietnamese Dong is another of the world's lowest-valued currencies. Historical economic problems the nation had undergone debased the Dong, though Vietnam is now one of the fastest-growing economies in Southeast Asia. Based on Google Finance, the exchange rate was around 1 Vietnamese dong equals 0.0033 Indian Rupee as of 12 Aug, 8:11 am UTC. It could be said that the low value of the Dong makes Vietnam a more interesting destination for budget tourists and students because it has so much vibrant culture and huge history and beautiful landscapes.

3. Laotian Kip (LAK)

The second is the Laotian Kip, the exchange rate of which is very less, and it majorly goes down because Laos is a developing country and the economic development is very slow. Accordingly, the Kip did not appreciate in front of major world currencies, keeping them at the bottom of this list. In 2024, 1 LAK comes for 0.0038 Indian Rupee as of 12 Aug, 8:11 am UTC. This country is simply beautiful, with stunning natural beauty, not to forget the rich cultural heritage. For travelers from India, the low-value currency makes it very cheap to visit.

4. Guinean Franc (GNF)

Guinea is a country in West Africa that has remained burdened by economic woes, thus keeping the Guinean Franc as one of the most undervalued currencies because of political instability, poor infrastructure, and extremely high inflation rates. The current system of exchange in 2024 is about 1 Guinean Franc for 0.0097 Indian Rupee as of 12 Aug, 8:13 am UTC. This country is an off-the-beaten-path place for travelers since Guinea, despite the bad economy, has so much to offer in terms of natural resources and cultural experiences.

5. Paraguayan Guarani (PYG)

The Paraguayan guarani is probably one of the most devalued currencies in the Americas. Paraguay is a pretty agriculture-driven economy, and its currency has taken a hit from high inflation rates and an economy less diversified. The current rate of exchange comes out to be approximately 1 Paraguayan Guarani to 0.011 Indian Rupee as of 12 Aug, 8:13 am UTC. Paraguay isn't on very many people's lists of places to visit for vacations, so it offers an excellent cultural and historical experience at rock-bottom prices for Indians.

6. Uzbekistani Som (UZS)

Another currency with a very low value is the Som of Uzbekistan because the country has not stabilized yet after the collapse of the Soviet Union. Whereas Uzbekistan is on the way to modernization, its currency is still very weak. Based on Google Finance, in 2024, 1 UZS is around 0.0066 Indian Rupee as of 12 Aug, 8:15 am UTC. This country is famous for the history of the Silk Road and the architecture, and this makes it attractive and relatively cheap for those who appreciate history and culture.

7. Sierra Leonean Leone (SLL)

Leone is the world's most worthless currency. The country has seen some economic turmoil with high inflation rates, coupled with political instability, both of which have devalued its currency tremendously. The current rate, as of 2024, is about 1 SLL to 0.0040 INR as of Aug 11, 2024 21:36 UTC (Forbes, 2024). For Indian travelers, that translates into a really cheap experience in Sierra Leone, though infrastructure-wise and politically, the country is not exactly any traveler's dream. It has some remarkable beaches, verdant rainforests, and historical sites, all which can be visited at wallet-friendly prices. 

8. Indonesian Rupiah (IDR)

For long, the Indonesian Rupiah was one of the most underrated currencies in Southeast Asia. That currently trades at about 1 IDR to 0.0053 Indian Rupee as of 12 Aug, 8:18 am UTC, making it one of the most famous Asian destinations, with its beautiful islands, rich culture, and in really cheap and affordable travel prices. Starting from exploring the lively streets of Jakarta to relaxing on the beaches of Bali or to experience the ancient temples of Yogyakarta, all of these can be afforded in an appropriate budget due to the low value of the Rupiah.

9. Cambodian Riel (KHR)

The Riel is the currency of Cambodia and happens to be one of the weakest in the world. Various historical challenges and political instability interfered with the economic development of Cambodia, keeping the value of the Riel at rock bottom. 

It's home to the rather magnificent ancient temples of Angkor Wat. Based on Google Finance database, 1 Cambodian riel equals 0.020 Indian Rupee as of 12 Aug, 8:17 am UTC. With the Riel at such a low value, this equates to a tiny cost — relative to most countries — for these historic sites, vibrant culture, and stunning landscapes. 

10. Ugandan Shilling (UGX)

Next is the low-valued Ugandan Shilling, depressed partly by Uganda's challenging economy and high inflation rate. In 2024, 1 UGX equaled nearly 0.023 Indian Rupee as of 12 Aug, 8:19 am UTC. For Indian travelers, Uganda represents an affordable destination, with the chance to view its unique wildlife and natural beauty. All these are available at wallet-friendly prices because of the Shilling's low value. However, travelers should be heedful of local conditions and plan their visit to ensure that they enjoy a smooth journey.

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Conclusion

Knowing the world currencies and their exchange rate against Indian Rupee is very essential for any traveler or student with thoughts to visit other places. So, countries with the weakest currency stretch your travel budget to the farthest, but really possible, limits of its plasticity but again traveling to these countries may come with their own cons. With an already extended and richer travel experience, be it backpacking across Southeastern Asia or exploring cultural treasures in Uzbekistan, knowing about world’s lowest currency values will help you in getting more out of your adventure.

Finally, while you are preparing to travel, plan your trip financially. Change the money in advance, plan out the budget wisely, and enjoy the opportunities coming your way to visit places where your Rupee will be valued more. Happy journey!

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Sources:

• Google Finance
• Forbes