15 Weakest Currencies in The World in 2024

In this article, we will take a look at the 15 weakest currencies in the world in 2024. The global foreign exchange market is estimated to be valued at $752.7 billion as of 2023.

The market is predicted to expand at a compound annual growth rate (CAGR) of 6.5% to reach a value of $1023.91 billion by 2028. The global foreign exchange market turnover is influenced by reporting dealers who contribute to liquidity throughout the day.

These dealers engage in buying and selling foreign currency at their set prices, maintaining a continuous offering of prices throughout the day. This impacts the daily forex market cap and shapes predictions regarding the market’s future. A key factor driving the growth of the foreign exchange market is the increasing trend of urbanization and digitalization. These factors are reshaping the foreign exchange market landscape, with digital technologies influencing trading methods and access to currency markets.

Europe is forecasted to contribute 43% to the overall growth of the global foreign exchange market during the period between 2023-2028. Similarly, North America is also expected to experience growth. From 2020 to 2021, currency transactions in North America increased by 3.6%, largely due to consistent monitoring and trade regulation in the region. The initial phase of the pandemic in North America caused numerous industrial facilities to temporarily close, which had an effect on 2020’s foreign exchange operations. However, when COVID-19 immunization efforts began in 2021, the foreign exchange market in North America showed signs of stability and confidence. For instance, the USD experienced a recovery amid signs of economic revival.

Major Players in Foreign Exchange Services

Key industry players are significantly contributing to the growth of the foreign exchange market. One such company is Bank of America Corporation (NYSE:BAC), catering to small and middle-market businesses, large corporations, and individual consumers with a comprehensive range of banking services. Bank of America Corporation (NYSE:BAC) facilitates the online ordering of foreign currency through a mobile banking app for individuals with savings accounts or at branches for credit card holders.

Moreover, JPMorgan Chase & Co. (NYSE:JPM) is another prominent financial services company operating in the industry. The company specializes in cross-border payments, operating in over 200 countries and territories, enabling individuals to send and receive money in more than 120 currencies. As of December 31, 2023, JPMorgan Chase & Co. (NYSE:JPM) reported holding assets totaling $3.9 trillion and stockholders’ equity amounting to $328 billion.

Here’s what Vltava Fund said about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2023 investor letter:

“Last spring, the US went through a brief banking crisis that cost several smaller and medium-sized banks their lives. One of them, First Republic Bank, with assets of $230 billion, went into receivership and was bought out by the largest US bank, JPMorgan Chase & Co. (NYSE:JPM). The acquisition terms were very favourable for JPM and the facts that few, if any, other banks could have taken over the whole of First Republic Bank in its then-present state while guaranteeing more than $100 billion of its deposits played a role. JPM could do it. It is not only the largest, but also by its balance sheet the strongest US bank and, in our opinion, clearly the best managed. It has come out of this crisis even stronger. We have actively followed the banking sector for 20 years in many countries around the world. Our view is that a well-managed bank can be a very good long-term investment but that it is better to focus on the best and highest quality available. Banking is not a sector where it pays to trade quality for cheaper valuations. That is why we hold JPM.”

Another key player in the industry, Commonwealth Bank of Australia (ASX:CBAPK), provides the convenience of ordering foreign currency online through ExpressFX, with the flexibility to order up to $10,000. The online ordering platform offers a variety of options with up to 30 currencies available. Customers also have the alternative to purchase foreign currency in person at the branch.

1 USD = 2,750.00 CDF

The Congolese Franc is the currency of the Democratic Republic of Congo. Created in 1997 — it is one of the weakest currencies in the world and continues to depreciate against the US dollar. In January 2024, the official exchange rate witnessed a weekly depreciation of 1.34%. This decline is attributed to the prevalent political instability and a scarcity of economic opportunities within the country.

1 USD = 2,854.10 BIF

The Burundian Franc is Burundi’s currency. It is amongst the weakest currencies due to the country’s heavy reliance on agriculture and the absence of industrialization. Despite Burundi’s decent food production, the economy has contracted by 25% in recent years, primarily attributed to civil unrest and overpopulation. Therefore, the nation heavily depends on humanitarian assistance and has a substantial national debt, reaching billions.

1 USD = 3,867.78 USH

The weakness of the Ugandan Shilling can be attributed to historical challenges faced during the government of Idi Amin, particularly in economic and immigration policies. Despite some improvements in recent years, the currency has depreciated around 5% against USD during the financial year 2023, indicative of ongoing economic instability and a lack of substantial development.

1 USD = 3,912.13 COP

Colombia has experienced significant economic instability, leading to an increase in prices and the depreciation of the country’s currency. The Colombian economy relies heavily on exported goods, such as oil and coffee. Fluctuations in global prices for these commodities have a profound impact on the stability of the Colombian currency.

1 USD = 4,073.56 KHR

The agriculture and tourism sectors serve as Cambodia’s main sources of income. The country has a dual-currency system, where US dollars are accepted as legal tender alongside the local currency, the riel. Dollar usage is prominent in urban centers and tourist destinations, while the riel is more commonly used in rural areas. In response to this disparity, the National Bank of Cambodia made efforts in 2020 to remove dependency on dollars slowly.

1 USD = 4,542.83 MGA

Madagascar adopted the Malagasy ariary as its main currency in 2005, replacing the franc. Madagascar deals with extreme poverty, as around 69% of its population lives below the poverty line. The country faces challenges of slow economic growth and poverty due to weak governance, lack of development of human resources, and poor infrastructure.

1 USD = 7,283.00 PYG

Paraguay is experiencing a major economic decline characterized by high inflation, increased unemployment rates, a rise in poverty, and heavy corruption. These factors have led to the depreciation of the currency. Paraguayan Guarani is at the ninth position on our list of the 15 weakest currencies in the world in 2024.

1 USD = 8,593.11 GNF

The Guinea Franc (GNF) is the official currency of the Republic of Guinea, divided into smaller units known as centimes, although centime coins are no longer in circulation due to their low purchasing power. The GNF operates on a floating exchange rate and is considered weak, primarily due to Guinea’s economic instability and high inflation rate.

1 USD = 12,339.85 UZS

The economy of Uzbekistan experienced significant challenges due to the impact of the Covid-19 pandemic. While internal economic activities resumed in the third quarter of 2022, the decline in industrial output created uncertainty regarding the future of the country’s currency. Despite increased government efforts to stabilize the currency, success has been limited or non-existent.

1 USD = 15,023.74 LBP

The depreciation of the Lebanese pound is due to a severe economic crisis that began in 2019 and is considered one of the worst by the World Bank since the mid-19th century. By October 2019, Lebanon faced four major challenges leading to the crisis. Firstly, the extremely high government debt made defaulting seemingly inevitable. Secondly, banks, which had lent a significant portion of their funds to the government, were facing a shortage of cash. Thirdly, the economy had not experienced growth for a decade, resulting in numerous social and political problems. Lastly, the country was in a state of political chaos, lacking clear leadership to address the crisis.