In 2008, a list of the world's worst currencies appeared on the Internet. We decided to update it and see if anything had changed in the last 2 years. There were a few surprises….
World's Worst Currencies in 2010
This "Top Ten" list is based on the currency exchange rates for June 2010. If you are considering visiting any of these countries for your holidays, then you will need a ruck-sack instead of a wallet, and remember to be vigilant when placing the decimal point in your currency converter! Look out for this year's 3 "new entries".
Surprisingly, these have gone from the new list…. Was there an extraordinary economic recovery? Were they replaced by even worst world currencies? Where are they now – what happened? The answer is quite simple…….
- they ceased to exist!
Some countries have discovered that the best way to turn around an economy and improve the currency is to knock off a few zeroes, change the picture on the notes, and have new money printed in another country (preferably somewhere far, far away). It seems to work!
Although the Dollar was considered to be among the highest valued currency units when it was first introduced in 1980, political turmoil and hyperinflation rapidly eroded the value of the Zimbabwe Dollar to become one of the least valued currency units in the world. It is incredible to think there was a time when 100 trillion Zimbabwe Dollars was not enough to buy a loaf of bread!
In August, 2008, ten zeroes were removed from the currency, reducing 10 billion Zimbabwean Dollars to one Dollar. Then in February 2009, the Reserve Bank of Zimbabwe had to remove 12 zeros from the currency, with 1,000,000,000,000 Zimbabwe Dollars being exchanged for 1 "new" Dollar.
Despite attempts to control inflation by legislation, the use of the Dollar as an official currency was effectively abandoned on 12 April 2009, although exchange rates with the Zimbabwean Dollar are still maintained at reasonable intervals. Currently, foreign currencies such as the South African Rand, Botswana Pula, Pound Sterling and the United States Dollar are widely used for nearly all transactions in Zimbabwe, and the government insists that the Zimbabwean Dollar should only be reintroduced if the industrial output improves.
Somalia has had no effective central government for nearly two decades, and conflict continues in the southern and central parts of the country between government troops and extremist Islamist militants. On 12 January 2010, the Transitional National Government signed a deal costing $17 million to print new currency for Somalia. The shipment of notes which has been printed in Sudan is said to be 200 billion Shillings, all in one thousand Shilling denominations. Today, the rate of exchange for the new currency is 1$ USD = 1,531.30 Shillings.
This new money has divided the country, and Somalia's Islamist insurgent groups, Hizbul Islam and Al-Shabaab have warned Mogadishu residents over usage of newly printed Somali currency. Hizbul Islam's governor in Mogadishu said they will punish whoever is caught using or carrying the currency.