Uganda Shilling ranks last among the weakest currencies in the world

Currencies around the world trade in pairs, and their value moves around (floating) in response to factors of supply and demand while some currencies are pegged to the dollar. This trading puts a price (exchange rate) on a currency relative to another currency. For currencies that are pegged to the dollar, their value against another currency, like the dollar, holds steady at an agreed-upon rate.

The price of a currency relative to another affects the cost of goods and services from one country to another. Meaning that when, for example, the dollar strengthens against Uganda's Shilling, American travellers to Uganda can get more Shillings for their dollars and effectively score cheaper vacations to see the countryside or safaris. On the other hand, it becomes pricier for people from Uganda to visit the U.S. because the Uganda Shilling will buy fewer dollars at a foreign currency exchange.

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Here are the world’s top 10 weakest currencies this year

These currencies are ranked based on the amount of U.S. dollars that will buy one unit of each currency. Additional information is reported by John Egan.

1. Iranian Rial (IRR)

1 rial buys 0.000024 dollar ($1 equals 42,300 Iranian rials).

"Iran's currency has been squeezed by economic sanctions, political unrest, and an annual inflation rate that has been topping 40%."

2. Vietnamese Dong (VND)

1 dong buys 0.000043 dollar ($1 equals 23,485 Vietnamese dong).

"Vietnam's currency has been undermined by a bad real estate market, restrictions on foreign investment and a recent slowdown in export activity."

3. Laotian Kip (LAK)

1 kip buys 0.000057 dollar ($1 equals 17,692 Lao kip).

"Laos' kip is No. 3 among the world's weakest currencies and has been hit by sluggish economic growth and crushing foreign debt obligations. Inflation is also worsening, and is helping push the currency even lower."

4. Sierra Leonean Leone (SLL)

1 leone buys 0,000057 dollar ($1 equals 17,665 Sierra Leone leones).

"High inflation, economic weakness, hefty debt obligations, political uncertainty and widespread public corruption are all factors that have dragged down the currency of this West African nation."

5. Lebanese Pound (LBP)

1 pound buys 0.000067 dollar ($1 equals 15,012 Lebanese pounds).

"The Lebanese pound is fifth among the weakest currencies in the world and has been turning in a woeful performance against a backdrop of a deeply depressed economy, historically high unemployment, an ongoing banking crisis, political chaos and eye-popping inflation."

6. Indonesian Rupiah (IDR)

1 rupiah buys 0.000067 dollar (or $1 equals 14,985 Indonesian rupiah).

"The rupiah has demonstrated some strength in 2023 compared with its Asian counterparts, but depreciation rocked the currency in previous years."

7. Uzbekistani Som (UZS)

1 som buys 0.000088 dollar ($1 equals 11,420 Uzbekistani som).

"Uzbekistan, a former republic of the Soviet Union, has been rolling out economic reforms since 2017, but its currency remains weak and it faces significant uncertainty."

8. Guinean Franc (GNF)

1 franc buys 0.000116 dollar ($1 equals 8,650 Guinean francs).

"Guinea has been plagued by high inflation and a refugee influx from neighbouring Liberia and Sierra Leone."

9. Paraguayan Guarani (PYG)

1 guarani buys 0.000138 dollar ($1 equals 7,241 Paraguayan guaranies).

"Paraguay's leadership in hydroelectric power hasn't led to economic power because of high inflation, drug smuggling and money laundering, and extreme weather events."

10. Ugandan Shilling (UGX)

Uganda ranks number 10 with 1 shilling buying 0.000267 dollar ($1 equals 3,741 Ugandan shillings).

“Uganda faces numerous challenges that could affect future stability, including explosive population growth, power and infrastructure constraints, corruption, underdeveloped democratic institutions and human rights deficits,” says the CIA.