The global economy is a complex system of interconnected currencies. While some currencies are strong and stable, others struggle to maintain their value. This list explores the current top 10 weakest currencies in the world as of August 2024.
Weakest currencies: Top 10
Following are the current top 10 weakest currencies in the world, as reported by Forbes:
1. Iranian Rial
2. Vietnamese Dong
3. Sierra Leonean Leone
4. Lao or Laotian Kip
5. Indonesian Rupiah
6. Uzbekistani Som
7. Guinean Franc
8. Paraguayan Guarani
9. Cambodian Riel
10. Ugandan Shilling
Stronger currencies: Economy movements
The Xe Global Currency Outlook according to xe.com highlights some key insights and trends shaping the global currency landscape in August 2024. Following are some key points from the observations.
The Japanese yen (JPY) became stronger in early August due to concerns about the US economy among other reasons.
The US dollar (USD) is likely to weaken by the end of the year because the US economy is slowing down.
As the USD weakens, the euro is expected to rise against the US dollar.
The British pound (GBP) is likely to decrease in value because of The Bank of England reducing interest rates at the beginning of the month.
Just like the US economy, Canada’s economy is also weakening. The US and Canada are major trade partners and therefore it makes sense that these two influence each other’s economies and, in turn, their currencies.
In addition, Canada’s unemployment is at a high, inflation is easing, and the central bank is likely to cut interest rates.
The Australian dollar (AUD) is expected to strengthen as the Reserve Bank of Australia (RBA) focuses on controlling inflation. Australia’s strong demand and slow productivity growth mean the RBA might keep or raise interest rates, thus boosting the AUD.
The South African rand (ZAR) has started to recover as political issues ease. It is expected to rise modestly as the USD weakens.
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