Worst performing currencies of 2023 – Zimbabwe dollar is not the worst

5. Turkish Lira

Price Against 1 USD on January 2, 2023: 18 

Price Against 1 USD on September 15, 2023: 26

Percentage Decline in Price in 2023: 44%

Turkish Lira is the official currency of Turkey, a country with roots in both Europe and Asia. Since it is an important global crossroads, the economic situation in Turkey has affected all neighboring economies. The prime factor behind the deviation has been the skyrocketing inflation. The annual inflation rate in the country accelerated for the second consecutive month to nearly 59% in August, up from around 48% in July, and surpassing market forecasts of near 56%. The central bank has raised key interest rates to combat this, resulting in further devaluation of the local currency. 

4. Argentine Peso

Price Against 1 USD on January 2, 2023: 178 

Price Against 1 USD on September 15, 2023: 349

Percentage Decline in Price in 2023: 96%

Argentine Peso is the official currency of Argentina, the famous South American country that won the FIFA World Cup in 2022. Unlike the highs from the football triumph, the local currency has taken a beating on the economic field. There are several reasons for this devaluation. For example, the current account deficit of the country has been waiting to record levels since 2018, the industrial output has been contracting, the trade gap has been increasing, and high inflation has led to record rate hikes, essentially bringing the economy to a halt. 

3. Syrian Pound

Price Against 1 USD on January 2, 2023: 2512 

Price Against 1 USD on September 15, 2023: 13001

Percentage Decline in Price in 2023: 417%

The Syrian Pound is the official currency of Syria, the Middle Eastern country that has been in a state of internal war since 2011. Even though the war-like situation has stabilized in contextual terms over the past few months, the years of conflict have left the economy of the country in tatters. The loss of oil-producing territories in the north of the country, as well as a meltdown in the economy of neighboring Lebanon, have all contributed to the further deviation of the Syrian pound in recent months. 

2. Zimbabwean Dollar

Price Against 1 USD on January 2, 2023: 672 

Price Against 1 USD on September 15, 2023: 4820

Percentage Decline in Price in 2023: 617%

Zimbabwean Dollar is the official currency of Zimbabwe, a country in Africa bordering Zambia and South Africa. A combination of factors, including the geopolitical pressures, inflation highs, and central bank missteps, have resulted in a downward spiral for the local currency that shows no signs of stopping. Unlike other countries in the region or around the world, the Zimbabwean dollar has depreciated by a staggering 617% so far this year as investors take refuge in the solidity that the US dollar offers in the face of economic instability. 

1. Lebanese Pound

Price Against 1 USD on January 2, 2023: 1507 

Price Against 1 USD on September 15, 2023: 15021

Percentage Decline in Price in 2023: 896%

The Lebanese Pound is the official currency of Lebanon, a country in the Middle East bordered by Syria and Israel. A combination of factors, including the impact of the COVID-19 pandemic, an explosion at an important port in 2020, and the Russian invasion of Ukraine, forced the central bank in the country to print more money, essentially erasing the value of the local pound and causing inflation and the US dollar to soar in value. The country pinned hopes on the IMF for a turnaround but the conditions set by the world lender have forced a rethink of policies in the government, leading to a slowdown in the economy that is expected to last for several months before the situation can be improved.  

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