Saturday, October 1, 2011

The most inflated currencies

If Switzerland and Japan can be proud that their currencies are the most stable in the world there are countries which money is completely cheap. Inflation there beats all the possible records. Bills with eight zeros circulate in these countries and people have to estimate their costs at billions. Thus, the most inflated currencies are:

Zimbabwe dollarе

Zimbabwe once one of the richest African countries has become famous for its highest rate of inflation. Having printed bills at the rate of 500 thousand Zimbabwe dollars the Central bank decided not to limit itself to it and issue a bill at the rate of 1 billion dollars. However for Zimbabwe it is not the money. In 2007 one loaf cost there 35 million local dollars. In 2008 beer cost more than 100 billion dollars. Three denominations were carried out. On February 2, 2009 a Zimbabwe dollar was denominated at the rate of one billion to one. However it did not help. On April 12, 2009 the government of Zimbabwe suspended the circulation of its national currency. Instead of it people of Zimbabwe can use US dollars, pounds and currencies of the neighbour countries that have more stable economies.

Vietnamese dong

Having claimed to be the next Asian tiger Vitnam showed the rapid economic growth in 2007. The country was expected to replace China and India. However in 2008 the situation changed fundamentally. Hyperinflation, growing prices and a collapsing stock market put paid to Vietnamese economic wonder. Money is rapidly losing its value: for one US dollar you`ll get 17 600 Vietnamese dongs. However despite the bleak present the government of the country hopes for the bright future. Moreover, in a long-range guess specialists estimate Vietnamese chances very positively.

Indonesian rupee

During the Asian financial crisis of 1997 Indonesian economy collapsed. At that time an Indonesian rupee lost 80% of its value for a few months. Inflation beat all the possible records: its rate reached 77% per year. Indonesian banks one by one announced about their bankruptcy and the economy decreased by 13% thereby it showed the worst rate in the history of Indonesia. Although the situation has become better since that time Indonesian rupees are considered to be one of the most inflated currencies in the world. This fact is proved by the rupee-to-dollar rate that is 9600 rupees for 1 US dollar.

Iranian rial

Many specialists think that the economy of Iran is a weak point of the policy conducted by Iranian president Mahmoud Ahmadinejad. The high rate of inflation that doesn`t drop lower than 20% proves their opinion. Instead of rials one may consider a gallon of oil to be the main currency. At least oil costs much more expensive while Iranian rials are very cheap. A 500-thousand bill has already circulated around the country. However it is not a limit yet; it is possible that soon bills with more zeroes will appear in Iran. A two-billion bill can be issued.

Laotian kip

At the end of the 1990s inflation in Laos reached its highest point — 100%, and national currency depreciated by 500%. The government understood that the only way out is to attract foreign capital. And then socialist Laos took a decisive step; it decided to open its borders to tourists. As a result a lot of foreigners came to the closed country and what is more important they brought their money to Laos. But tourist boom did not help a Lation kip. It still finds itself in the list of most inflated currencies: for one US dollar you will get 8 390 Laotian kips.

Paraguayan guarani

Although national currency of Paraguay is guarani you will hardly meet it in the country. People of Paraguay value foreign currency more highly because their own money is too cheap. The today`s gurani-to-dollar exchange rate is 4 850 guaranis for one dollar. However Paraguayan money is withdrawn from the circulation. If you are able to pay guaranis in Asuncion it will be impossible to do it in the east of the country. A cashier may just have no guaranis. It is simply explained: all the country is a duty-free zone that makes it attractive to foreigners. In Paraguay they can buy goods much cheaper than in their own countries. And everyone may pay any currency he/she wants because there is no exchange control. That is why a Brazilian real, Argentine peso and US dollar are more desirable currencies than a Paraguayan guarani.