1. Pound Lubnan- 897%
2. Pound Syria – 417% 3
3. Lira Turkiye- 50%
4. Rupee Pakistan – 30%
5. Egypt Pound – 24%
6. Yen Jepun – 13%
7. Som Uzbekistan – 8.3%
8. Ringgit Malaysia – 7%
9. Yuan China – 6%
10. Won Korea Selatan – 4%
1. Lebanese Pound
Price Against 1 USD on January 2, 2023: 1507
Price Against 1 USD on September 20, 2023: 15030
Percentage Decline in Price in 2023: 897%
The Lebanese Pound is the official currency of Lebanon, a country in the Middle East. In April last year, Deputy Prime Minister Saadeh al-Shami announced that the central bank and the government of the country had gone bankrupt. Since then, the currency has continued to slide against the US dollar, despite government measures to stabilize it. Some of the reasons behind the devaluation include the impact of the Russian invasion on energy and food prices, a slower-than-expected recovery from the COVID-19 pandemic, and political instability that has caused multiple IMF programs to fail.
2. Syrian Pound
Price Against 1 USD on January 2, 2023: 2512
Price Against 1 USD on September 20, 2023: 13001
Percentage Decline in Price in 2023: 417%
The Syrian Pound is the official currency of Syria, a Middle Eastern country. The country has been at war for most of the last decade. In addition to the war, some of the other reasons plaguing the currency of the country include Western sanctions on trade with the Assad government, the impact of worsening economic conditions in neighboring Lebanon, and the loss of oil-rich northern parts of Syria in the war have all combined to push the currency further down. Rising energy and food prices, and the weakening of the Russian economy, which is closely linked to Syria, are also factors in the devaluation.
3. Turkish Lira
Price Against 1 USD on January 2, 2023: 18
Price Against 1 USD on September 20, 2023: 27
Percentage Decline in Price in 2023: 50%
Turkish Lira is the official currency of Turkey, a country in both Europe and Asia. The Lira has devalued in recent months because of depleting foreign exchange reserves and record inflation. After months of inaction on part of the Erdogan-led government, recent policy measures aimed at curbing inflation and stabilizing the currency, including a larger-than-expected interest rate hike at the end of the third quarter, have resulted in a brief rally. However, the currency remains one of the worst performers of the year.
4. Pakistani Rupee
Price Against 1 USD on January 2, 2023: 226
Price Against 1 USD on September 20, 2023: 294
Percentage Decline in Price in 2023: 30%
Pakistani Rupee is the official currency of Pakistan, a South Asian country. Although the Rupee has gained in recent weeks on the back of a string of currency control measures introduced by a caretaker government, it remains under strong pressure from the greenback. Pakistani reliance on energy imports, which has been at the core of a circular debt crisis, still remains largely unaddressed. In the face of persistent inflation and increased borrowing from the government, it remains to be seen whether Islamabad can successfully negotiate the challenging global economic conditions created by a war in Europe. IMF officials, which approved a bailout program for the government recently, have expressed hope that strict economic reforms will do the trick.
5. Egyptian Pound
Price Against 1 USD on January 2, 2023: 24
Price Against 1 USD on September 20, 2023: 31
Percentage Decline in Price in 2023: 29%
The Egyptian Pound is the official currency of Egypt, a country with considerable influence in the Arab world. Some of the reasons why the Pound has fared so badly against the US dollar this year are rising food and energy prices. Egypt is one of the biggest importers of wheat in the world. The Russian war in Ukraine put a premium on wheat prices, and this has served to widen the debt of the Egyptian government. Authorities in Cairo have gone to the International Monetary Fund for help. The IMF has demanded Egypt take long-term measures to fix the economy. Some of these include the raising of interest rates and more free market policies aimed at helping businesses achieve sustainable long-term growth.
6. Japanese Yen
Price Against 1 USD on January 2, 2023: 130
Price Against 1 USD on September 20, 2023: 147
Percentage Decline in Price in 2023: 13%
Japanese Yen is the official currency of Japan. In recent months, despite foreign currency inflows from exports, the Yen has come under pressure due to rising food and energy prices globally. Rising oil and gas prices are one of the reasons why the import bill of the country has gone up, and the government has been borrowing money to meet expenses. High Treasury yields in the US and a strong dollar are also decreasing interest in Asian market assets.
7. Uzbekistani Som
Price Against 1 USD on January 2, 2023: 11229
Price Against 1 USD on September 20, 2023: 12163
Percentage Decline in Price in 2023: 8.3%
Uzbekistani Som is the official currency of Uzbekistan, a country in Central Asia. Ever since getting independence from the Soviet Union, the country has strongly relied on Russian trade for economic stability. This is perhaps one of the reasons why the Uzbek currency has devalued against the US dollar this year. The Russian economy has come under heavy pressure amid the war in Ukraine, an internal mutiny in Moscow, and a ban on Russian energy exports. This has pummeled currencies that take their cue from the Russian Ruble. Uzbek authorities are mulling measures to attract more foreign investment to shore up the currency freefall.
8. Malaysian Ringgit
Price Against 1 USD on January 2, 2023: 4.40
Price Against 1 USD on September 20, 2023: 4.70
Percentage Decline in Price in 2023: 7%
Malaysian Ringgit is the legal tender in Malaysia, a country in East Asia that has historically performed strongly against the US dollar, especially in the past three decades. Per reports, the almost 5% decline in the Ringgit this year last happened during the Asian financial crisis twenty-five years ago. Some of the reasons that the Ringgit has performed so badly this year include rising political uncertainty in the country, the strong demand for the US dollar worldwide amid soaring energy prices, a fall in exports for Malaysia, and the reliance of the Malaysian economy on China. Inaction on part of the government to control currency trades has also devalued the currency.
9. Chinese Yuan
Price Against 1 USD on January 2, 2023: 6.9
Price Against 1 USD on September 20, 2023: 7.3
Percentage Decline in Price in 2023: 6%
Chinese Yuan is the official currency of China, one of the largest economies in the world. The Yuan has come under a lot of pressure this year due to several reasons. Some of these include the selling of Chinese stocks by investors outside of China, economic data figures from Beijing that have disappointed investors, widening yield differentials with the United States, and corporate dividend payments. The Chinese currency is one of the worst performing in Asia this year when measured against the US Dollar. However, when measured against other powerful currencies, it holds surprisingly steady. Beijing has put in place strong currency controls to limit capital outflows and reduced the amount of foreign reserves needed for large corporations to continue to function in order to shore up some confidence in the market.
10. South Korean Won
Price Against 1 USD on January 2, 2023: 1272
Price Against 1 USD on September 20, 2023: 1326
Percentage Decline in Price in 2023: 4%
South Korean Won is the official currency of South Korean, a tiny country between China and Japan that is a major electronics hub for the rest of the world. Even as famous brands like Samsung contribute nearly a fourth of the total GDP of the country, the currency of the Korean nation has been on a wild ride this year due to pressures from Chinese economic data as well as interest rate hikes from the Federal Reserve in the United States. The Won is often used as a proxy for trades in the Chinese Yuan, since China has strict currency controls. The dramatic devaluation of the Yuan has thus pressured the Won this year. The Korean economy is dependent on China in trade as well, and a slowdown in the Chinese economy this year has resulted in a slowdown in Korea too, devaluing the Won.