In this article, we discuss the 5 worst performing currencies in Asia. If you want to read about some more worst performing currencies, go directly to 10 Worst Performing Currencies in Asia.
5. Egyptian Pound
Price Against 1 USD on January 2, 2023: 24
Price Against 1 USD on September 20, 2023: 31
Percentage Decline in Price in 2023: 29%
The Egyptian Pound is the official currency of Egypt, a country with considerable influence in the Arab world. Some of the reasons why the Pound has fared so badly against the US dollar this year are rising food and energy prices. Egypt is one of the biggest importers of wheat in the world. The Russian war in Ukraine put a premium on wheat prices, and this has served to widen the debt of the Egyptian government. Authorities in Cairo have gone to the International Monetary Fund for help. The IMF has demanded Egypt take long-term measures to fix the economy. Some of these include the raising of interest rates and more free market policies aimed at helping businesses achieve sustainable long-term growth.
4. Pakistani Rupee
Price Against 1 USD on January 2, 2023: 226
Price Against 1 USD on September 20, 2023: 294
Percentage Decline in Price in 2023: 30%
Pakistani Rupee is the official currency of Pakistan, a South Asian country. Although the Rupee has gained in recent weeks on the back of a string of currency control measures introduced by a caretaker government, it remains under strong pressure from the greenback. Pakistani reliance on energy imports, which has been at the core of a circular debt crisis, still remains largely unaddressed. In the face of persistent inflation and increased borrowing from the government, it remains to be seen whether Islamabad can successfully negotiate the challenging global economic conditions created by a war in Europe. IMF officials, which approved a bailout program for the government recently, have expressed hope that strict economic reforms will do the trick.
3. Turkish Lira
Price Against 1 USD on January 2, 2023: 18
Price Against 1 USD on September 20, 2023: 27
Percentage Decline in Price in 2023: 50%
Turkish Lira is the official currency of Turkey, a country in both Europe and Asia. The Lira has devalued in recent months because of depleting foreign exchange reserves and record inflation. After months of inaction on part of the Erdogan-led government, recent policy measures aimed at curbing inflation and stabilizing the currency, including a larger-than-expected interest rate hike at the end of the third quarter, have resulted in a brief rally. However, the currency remains one of the worst performers of the year.
2. Syrian Pound
Price Against 1 USD on January 2, 2023: 2512
Price Against 1 USD on September 20, 2023: 13001
Percentage Decline in Price in 2023: 417%
The Syrian Pound is the official currency of Syria, a Middle Eastern country. The country has been at war for most of the last decade. In addition to the war, some of the other reasons plaguing the currency of the country include Western sanctions on trade with the Assad government, the impact of worsening economic conditions in neighboring Lebanon, and the loss of oil-rich northern parts of Syria in the war have all combined to push the currency further down. Rising energy and food prices, and the weakening of the Russian economy, which is closely linked to Syria, are also factors in the devaluation.
1. Lebanese Pound
Price Against 1 USD on January 2, 2023: 1507
Price Against 1 USD on September 20, 2023: 15030
Percentage Decline in Price in 2023: 897%
The Lebanese Pound is the official currency of Lebanon, a country in the Middle East. In April last year, Deputy Prime Minister Saadeh al-Shami announced that the central bank and the government of the country had gone bankrupt. Since then, the currency has continued to slide against the US dollar, despite government measures to stabilize it. Some of the reasons behind the devaluation include the impact of the Russian invasion on energy and food prices, a slower-than-expected recovery from the COVID-19 pandemic, and political instability that has caused multiple IMF programs to fail.
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