Cheapest Currency And Reasons For Its Low Value
There are currently 180 currencies across the world, as recognized by the United Nations. Currently, the Iranian Rial is the cheapest currency in the world. Consequently the fall in its value is mainly due to international pressures and sanctions imposed on Iran due to the troubled political relations. Iran has many economic troubles and weak foreign relationships which never end but always keep rising.
History of Cheapest Currency
The history of Iranian rial dates back to the eighteenth century, they were constantly replaced by the dinars, qiran etc. After the decimalization of the currency, the Iranian rial gained popularity and was used as the official currency of the state of Iran. Usually, Iranians often express money in “tomans” which is equal to 10 rials. But this common usage is only verbally limited and prices are always written in Iranian Rial. This currency does not have an official symbol for itself but the code ISIRI 2900 and ISIRI 3342 are often used.
Iranian Rial Value And Conversion Rate
It was never the cheapest currency. Due to extreme tension in the relationship with international community, Iranian rial sharply devalued to almost half of its original value in 2013. The country announced after three years that it would change it to “toman”. This decision is still waiting approval and implementation from the Parliament in Iran. The low price of the Iranian Rial has been stable for almost three years. Its currency code is IRR.
1 US Dollar = 46,106.65 Iranian Rial
In the black market, the USD is sold for an even greater amount of approximately 67000 IRR.
Reasons For Devaluation Of The Iranian Rial
There are several reasons for the IRR being the cheapest currency in the world. Below are the reasons for it devalue.
Iran has a pretty unstable and weak economy and inflation rates always keep on changing. Thus, leaving the people in misery.
Sanctions by Other Countries
The international world always has a huge pile of sanctions ready for Iran. The USA keeps on changing and adding primary and secondary sanctions. Hence causing a huge effect on the value of the currency.
After the Iran-Iraq war, several countries threatened and claimed that Iran might be developing nuclear weapons. This suspicion led to extreme restrictions on Iran on the international level. Thus, significant drop in their economy making it the cheapest currency. Even though Iran has oil reserves, it is unable to trade oil. Leading to a major hole in the budget and development.
Political Crisis and Public Unrest
In response to the crumbling economy, deteriorating international relationships and bad policies, the public of Iran took to the streets to stage protests. These protest also stirred up a new political talk and quickly spread over country. A limited amount of money was allowed to be kept by the people which only increased their troubles. Corruption, external pressure and internal fighting made a very unstable environment. Again affecting everything including the economy and making Iranian Rial the cheapest currency. Steps are being taken for the unification of exchange rates to resolve this matter.
Due to varying political climate, Iran has been deeply affected, so much that the Iranian Rial holds the title for the cheapest currency. If not taken seriously, the economy can crumple and great damage can occur to the state.
Other Cheap Currencies
It is not just the Iranian Rial, but there are various other currencies that are really cheap. Here are just a few of them.
This country doesn’t have the ideal economy type and has a very low GDP rate which is the main reason for the devaluation of the currency. However, it is taking steps to improve the economy but still has a long way to go. Roughly 22770 Vietnamese Dong equals to 1 US dollar.
As compared to Vietnam, Indonesia has somewhat moderately stable economy but still has very low currency exchange rate. As a matter of fact the foreign policies and GDP values are constantly being worked on but all the efforts seem futile currently. 1 US dollar is equal to 13765 Indonesian Rupiah.
This country is facing increased poverty and extreme inflation rates which affects the devaluing of the currency. It is labeled as the most inflated African country. It has huge reserves of natural resources like gold and aluminum, but no progress is seen in its economy. 9055 GNF equals to 1 US Dollar which makes it among the second cheapest currency in the world.
Lao or Laotian Kip
Unlike the mentioned list of cheapest currency, Lao never devalued. Reason being for it to be cheap is its low rate of issue. Ever since 1952, the currency has started to improve its value against the expensive currencies, but more time and effort is still needed. 1 US dollar is equivalent to 8288 Laotian Kip .This makes it the one the cheapest currency in the whole world.
Iranian rial is currently the cheapest currency in year 2018. However, things may improve when these political rest and peace over the country. For more interesting information keep visiting Aedrio.