Do you know what are the cheapest currencies in the world in 2017?
With 195 UN recognized countries in the world, there are 164 national currencies according to Countries of The World. Moreover, there are many countries in the European Union that use Euro as the official currency, and there are a lot of them besides the United States that use US dollar, precisely ten of them. Among those 164 currencies the newest one is the South Sudanese pound, whereas the oldest in the world is the British pound, dating back from the 8th century.
So, how do you know if one currency is weak or strong? Well, in order to realize it, it has to be first contrasted to another currency. Indeed, the exchange rate can be defined as “the ratio at which the principal unit of two currencies may be traded”. The usual parameters for all other currencies are Dollar or Euro, as they are mostly used. Moreover, currencies are often changing their values. Even though its strength is shown mainly through its stability, and currency’s stability is an indicator of a strong economy among others, it doesn’t always have to be the case that the cheap currency is bad for one country’s economy. Let’s see why. One of the reasons is that export could grow as one country’s goods are relatively cheaper compared to the goods of stronger currencies. However, if you are interested in expensive currencies check out the 10 Most Expensive Currencies in The World in 2017.
Currency fluctuations impact many aspects of one country’s economy: import/export, capital flows, economic growth, inflation, interest rate. Furthermore, due to the globalization phenomena, economic and financial interdependence among countries has increased, thus making it possible for strong currencies (such as the US dollar) to have a global impact whenever they change their value. In order to create the list, we looked for low-valued currencies and then checked their exchange rate against the US Dollar on 30th June 2017 and ranked them in that manner. The following list of cheapest currencies in the world in 2017 goes from the least cheap currency in our ranking, to the cheapest one. Here we go: