Global ranking: top worst currencies in the world in 2024

The year 2024 has become a turning point for global currency markets. The top worst currencies in the world demonstrate serious imbalances in the global economy, reflecting inflationary processes, geopolitical tensions, and the heterogeneity of monetary policies across countries.

African and Middle Eastern Currencies: Maximum Weakening

The most significant currency declines have been recorded on the African continent. The Nigerian Naira leads the list, losing 39% of its value. The Egyptian Pound follows with a 34% drop, reflecting a sharp crisis in foreign exchange reserves and high domestic inflation.

The Ghanaian Cedi also shows troubling dynamics with an 18% decline, indicating systemic problems in African economies amid global uncertainty. These currencies suffer from a lack of hard currency, rising government debt, and low investment activity.

Emerging Markets: Pressure on Asian and Latin American Currencies

Southeast Asia and Latin America experienced moderate but noticeable weakening of their national currencies. The Thai Baht decreased by 6%, reflecting a slowdown in the tourism sector and capital outflows. The Bangladeshi Taka fell by 7%, linked to foreign currency shortages and political instability.

The Brazilian Real also lost 6% of its value, despite the relatively strong position of the economy, indicating global strengthening of the US dollar. The Argentine Peso dropped by 9%, continuing the devaluation trend that began in previous years amid macroeconomic reforms.

Developed Economies in the Zone of Uncertainty

Unexpectedly weak results were shown by currencies of developed countries. The Turkish Lira fell by 9%, reflecting high inflation and the specifics of the Turkish Central Bank’s monetary policy. The Japanese Yen declined by 10%, related to divergence in monetary policy between the US Federal Reserve and the Bank of Japan.

The Swiss Franc, traditionally considered a safe haven for investors, weakened by 8%, indicating the specifics of Swiss monetary policy amid global inflation.

Main Factors of Global Currency Decline

Analyzing the top worst currencies in the world, several key reasons for the global weakening can be identified. The dominance of the US dollar as a safe asset has led to capital flows into the US. Geopolitical risks, including the energy crisis, have put pressure on emerging markets. Uneven recovery after the pandemic has created imbalances in inflation rates between countries.

Additionally, differences in monetary policies of central banks have increased volatility in currency markets. Countries with chronic foreign exchange reserve deficits faced especially harsh market criticism, leading to accelerated devaluation in African and Middle Eastern countries.