The Sierra Leonean Leone (SLL) has been named among the world’s weakest currencies in 2024 by American business magazine Forbes.
According to the ranking released on Tuesday, Leone is in the third position below the Iranian rial (IRR) and Vietnamese dong (VND). Other weakest currencies in the list include Laotian kip (LAK), Indonesian rupiah (IDR), Lebanese pound (LBP), Uzbekistani som (UZS), Guinean franc (GNF), Paraguayan guarani (PYG) and Ugandan shilling (UGX).
Forbes analyzes currency strength based on the exchange rate with the US dollar. As of publication, a staggering 20,833 Leones are needed to purchase a single dollar, highlighting the currency’s significant devaluation.
Introduced in 1964 and floating freely on the market, the Leone has borne the brunt of several economic woes.
High inflation exceeding 40%, a mountain of debt, sluggish economic growth, and lingering repercussions from the Ebola outbreak have all conspired to weigh down the Leone’s value. This weakness directly impacts Sierra Leone’s citizens, making everyday purchases costlier and eroding purchasing power.
Located in West Africa, Sierra Leone boasts a resource-rich economy with exports like timber, diamonds, gold, and industrial metals. However, these riches haven’t translated into currency stability, leaving the government and many Sierra Leoneans grappling with the consequences of a depreciating Leone.
As the country seeks to address its economic challenges, tackling inflation, managing debt, and fostering growth will be crucial to strengthening the Leone and improving the lives of its citizens. The journey won’t be easy, but it’s a necessary one for Sierra Leone to climb out of the ranks of the world’s weakest currencies.
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