Main Category: Blog

When it’s salary day, people around the world will be eagerly waiting for that one thing: their money arriving on time without any discrepancies. In the UAE, to give extra assurance that their salaries are paid on time, the Wage Protection System (WPS) was introduced.

So, what is WPS in UAE, why was it introduced, and how does it impact both employers and employees? Let’s take a closer look.

What is WPS in UAE?

Wage Protection System or WPS in UAE is the electronic salary transfer system developed to ensure that the employees receive their salaries on time. The system was introduced in July 2009 by the UAE Central Bank and the Ministry of Human Resources and Emiratisation (MOHRE).

Why was WPS Introduced?

WPS was introduced in response to multiple reports regarding delayed or missing salaries. This was a common concern for expats who send money home. Even a minor delay in wage payments can result in unpaid rent, missed bills, or hardship for families abroad.

So, the UAE government introduced WPS to:

• Ensure timely wage payments.
• Create a traceable record of salary transfers.
• Prevent disputes between employers and employees.
• Enforce accountability on companies.
• Enhance trust in the labour market.

For businesses who seek to simplify payroll and ensure WPS compliance, explore LuLu Exchange’s Wage & Salary Administrator services!

How Does WPS Work?

The infographic below shows how wages flow through the WPS system.

Now let’s find out how the Wage Protection System works in the UAE. Here’s a step by step process:

• WPS Registration: Employers must first register with WPS through a UAE bank or with a WPS-approved financial institution.
• Timely Submission of Salary Information: Next, it’s the duty of the employer to submit the Salary Information File (SIF) of the employee through the WPS platform.
• Salary Disbursement: Once the information provided is verified by the Central Bank & MOHRE, the bank issues a payment order through WPS and notifies the employer. Salaries will then be sent to the employee’s bank account via WPS, with email alerts sent if corrections are required.
• Monitoring & Compliance: WPS system ensures that the payment is properly processed and received by the employee. In case of any delays, discrepancies, or payment failures, the employer must resolve the issue and resubmit.

Who Is Included and Who Is Exempt from WPS?

All private sector companies registered with MOHRE are included under WPS.

Those who are exempted from WPS are:

• Employees who have filed a wage-related labour complaint.
• Employees who are officially reported absent as per the ‘work abandonment’ report.
• UAE-national employers who own fishing boats and public taxis.
• Banks and houses of worship.
• New employees in their first 30 days.
• Employees who are on unpaid leave.

If you’ve received your salary on time, you can send money to your loved ones through the LuLu Money App!

How to Register for WPS?

Here’s how you as an employer should register for WPS:

• Register with MOHRE (Ministry of Human Resources and Emiratisation).
• Open a Corporate Bank Account with a bank that supports WPS.
• Select an authorised WPS agent approved by the UAE Central Bank.
• Sign an agreement with the chosen WPS provider.
• Prepare a Salary Information File (SIF) in the required format and upload it through your bank or the WPS system.
• Transfer salaries to employees’ accounts via WPS as per the due dates in their contracts.
• MOHRE and the bank will review the transfers and confirm compliance.

Penalties for Late or Non-Payment of Salaries

Here are the penalties for late or non-payment of salaries:

• On salary due date: All establishments will be monitored electronically for timely payments.
• 3–10 days late: Reminders will be sent to employers.
• 17 days late: Work permit issuance will be suspended for all its establishments; larger companies (50+ employees) may face inspections and get warnings.
• 45 days late (50+ employees): Legal action will be initiated by authorities.
• Repeated violations within 6 months: Fines will be applied and establishments will be reclassified under stricter regulations.

Also Read: How AI Will Impact Money Transfer in the Future

Frequently Asked Questions

Is WPS in UAE only for UAE nationals?

No. WPS in UAE applies to all private-sector employees including the UAE nationals working under the UAE labour law (with certain exemptions).

Which sectors fall under WPS?

The Wage Protection System (WPS) applies to the private-sector companies across all sectors.

Does WPS cover allowances, overtime, deductions?

Yes. The SIF file must include basic wages, allowances, and legally permissible deductions so that net salary is correct.

What should I do if my employer doesn’t use WPS?

If your employer doesn’t use WPS, you can file a complaint with MOHRE/LRA with proper evidence.

Is WPS applicable for part-time employees?

Yes, WPS is applicable for both part-time and full-time employees.

Are there any penalties for late or non-payment of salaries?

Yes. Penalties will depend on how late the payment is and may include fines, suspension of services, or legal action against the employer.

We often think that change requires grand gestures but the truth is that small, consistent actions can transform the world around us. Every choice we make, what we buy, how we use resources and even how we manage our finances creates ripples that extend far beyond our individual lives.

Take a simple example: choosing to carry a reusable shopping bag. On its own, it seems minor. But when thousands of people make the same choice, it significantly reduces plastic waste and encourages retailers to rethink their packaging. Similarly, being mindful about reducing food waste at home saves money while helping cut down on greenhouse gas emissions from landfills. These choices, though small, contribute to healthier communities and a more sustainable planet.

The same principle applies to financial decisions. How we save, spend and protect our money directly influences our own future while setting a tone for others around us.

Smarter Saving Habits

Building a habit of saving, even if it’s just a small amount each week, creates financial security and peace. Over time, these savings can grow into an emergency fund or investments for long-term goals. Just like carrying that reusable bag, small deposits done consistently can make a big impact.

Staying Scam-Safe

One careless click in today’s digital world can lead to serious losses. Being cautious about sharing personal information, double-checking suspicious messages and only using trusted financial apps or institutions helps protect us from scams. When we practice safe financial habits, we encourage others to do the same. It creates a ripple effect of awareness and safety.

The ripple effect becomes even stronger when these habits inspire others. A colleague sees you setting up a savings goal and decides to start one too. A family member watches you avoid a suspicious investment scheme and becomes more alert themselves. Slowly, communities shift toward safer, more responsible financial behaviour.

The beauty of the ripple effect is its simplicity. You don’t need to be a policymaker, activist or entrepreneur to make a difference. Be it carrying a reusable bag or setting up auto-savings. Positive change is built step by step through mindful choices.

It’s never too late to start!. But start small today! Save a little each week, stay alert against scams, go digital with your finances and spend consciously. Remember, your everyday actions can spark ripples that shape a more sustainable, financially secure, compassionate and connected future for generations to come.

Just think back 5 or 10 years. Sending money across borders often meant waiting days or even weeks for it to reach your loved ones. Today, those same transfers reach them in seconds.

Whether it’s a father supporting his family, a student paying tuition abroad, or a business settling accounts overseas, remittances have become faster and more reliable than ever.

Artificial Intelligence (AI) is now rewriting the next chapter. Just as smartphones transformed the way we communicate, AI is transforming the way money moves across borders, making transfers faster, safer, and more human.

If you are staying abroad and need to check the live exchange rates, check them now before we get into the details.

Check Live Rates & Send Money

Now, let’s explore how AI will shape the future of payments.

The Current Role of AI in Payments

Before finding out the future impact of AI in payments, let’s first look at how it’s already transforming the payment industry today:

• Fraud detection & risk assessment: AI tracks transaction velocity, device fingerprints, unusual location/IP jumps to detect suspicious activity.
• Revenue growth: The finance/payment industry multiplied their total revenue by leveraging AI-powered insights and efficiencies.
• Smarter compliance: AI streamlines KYC and AML checks by automating tasks like document scanning with OCR, identity verification, and cross-checking against sanction lists.

• Personalised experience: AI makes customer experience more personalised by making use of chatbots, payment suggestions, smoother UIs, voice-enabled interfaces.
• Optimised cross-border payments: AI helps to reduce costs, improve exchange rates, speed-up transfers, and choose optimal routing.

Find out the significance of SWIFT code in cross-border payments!

How Will AI Shape the Future of Money Transfer?

From what we see today, AI’s huge potential to redefine the money transfers is evident. Here’s how AI is likely to impact payments in the coming years:

Faster Transfers

Traditional transfers which involved multiple steps and waiting times are now much faster with AI. With instant data analysis and intelligent routing systems, your money reaches loved ones much faster, with speeds set to improve further.

Hyper-Personalised Experience

AI will act as a financial assistant in your pocket by suggesting the best transfer times, predicting your needs, and simplifying every transaction. In this way, it will make every transaction more personal, convenient, and stress-free.

Stronger Security

AI has the ability to detect unusual/fraudulent behaviors in real time whether it’s a login attempt from an unknown device or an unusually high transfer amount.

Risk models are evolving to become even more sophisticated, while counter-AI systems are emerging to deal with fraudsters using AI themselves. As a result, users will be more confidence about the safety of their money.

Automated Global Compliance

AI will evolve to manage compliance seamlessly across borders. It will handle complex regulations, monitor transactions in real time, and predict risks before they occur. In this way, there will be less delays and smoother, more secure international transfers.

Lower Costs

AI doesn’t just make things faster; it makes them cheaper. By automating manual processes and reducing human error, AI helps financial providers cut operational costs, thus letting users pay lower fees, making remittances more affordable for millions.

Customers will see even more transparent, possibly lower, fees in the future.

Send money home using LuLu Money App. Let your love reach home instantly!

Financial Inclusion

Perhaps the most exciting impact of AI is its ability to bring more people into the financial system. By analysing alternative data (like mobile usage or payment history), AI will help assess creditworthiness for people without a traditional banking footprint.

Thus AI will offer safe and affordable transfer services to more migrants, workers, and families, without giving anyone a feeling of being left out of the system.

In short, AI will handle the complexities, so people can focus on what matters most: supporting dreams, staying connected, and building better futures.

What Are the Challenges and Risks of Using AI in the Payment Industry?

Let’s examine the day-to-day challenges and macro-level risks.

Day-to-Day Challenges:

• Different rules in each country make automation tricky.
• Risk of wrongly flagging genuine transfers as fraud.
• Challenge to strictly follow strong data protection and privacy rules.
• Absence of proper infrastructure in certain recipient countries to support AI.
• High integration costs and need for skilled people to maintain AI systems.

Macro Level Risks:

• Potential risks of faster spread of financial shocks (IMF) if many financial organisations use similar AI models.
• Regulators are closely watching how AI is used in fraud checks, money laundering, and cross-border transfers.
• Global payment systems may face new pressures during crises; AI can help predict risks but may also create new weak points.

Have a look at the currency symbols in the world!

Preparing for the Future of Cross-Border Payments

AI is already here. Those who prepare early will win trust and be competitive. Here’s how:

• Start small: Use AI for fraud checks, KYC, or exchange rates in low-risk corridors before scaling.
• Use better data: A model is only as good as the data it learns from. So, use clean, diverse data and respect privacy.
• Focus on user transparency: When the system makes a decision such as delaying or flagging a transaction, or adjusting costs, users should know why. This builds trust.
• Think inclusion: Build AI that works even for people with weak internet, basic phones, or limited documents.
• Work with regulators: Stay ahead of evolving rules on AI, data privacy, and cross-border compliance to ensure long-term stability.
• Maintain human oversight: Even with advanced algorithms, human review of edge cases and escalations is important.

Also Read: What is WPS in UAE?

A Future Scenario

Picture this: You are in Dubai, sending money every month to your elderly parents in the Philippines. If we assume the future scenario, AI could make it look like this:

You open your app, and AI suggests the best time of that day to send money at the lowest fee and best exchange rate.

You scan your ID via the app; AI verifies identity within minutes with OCR + biometric checks.

Your money goes via the optimal routing path, passing through fewer intermediaries, at lower cost.

If delays are expected, you’re alerted and given a choice to proceed or wait.

If there are no delays, your money gets delivered instantly to your parents.

Small, but powerful improvements like these multiply across thousands of users to make the system smoother, cheaper, and more human.

Conclusion

AI has already taken its place in the payment industry becoming the backbone of safer, faster, cheaper, and more inclusive remittances. While technology alone won’t solve every problem, the opportunities are huge.

For providers who embrace AI thoughtfully will build greater trust and loyalty. For users, it means transfers won’t just move money, but will also carry care and connection with far less friction.

Frequently Asked Questions

How will AI change the future of banking?

AI will make banking faster, safer, and more personalised with instant KYC, fraud alerts, and tailored financial advice.

How will AI impact remittances?

It will simplify sending money across borders with instant ID checks, better exchange rates, and fewer delays for families worldwide.

Is AI a threat to banking?

If managed properly, AI won’t be a threat to banking. The real threat comes from poor oversight, biased models, or weak data governance.

Will AI replace humans in the banking sector?

No. AI will handle routine checks and speed up processes, but human oversight will still be key for trust, fairness, and complex cases.

In today’s interconnected world, sending money across borders demands precision. Even a small error can result in delays or failed transactions. That’s where IBAN, or International Bank Account Number, comes in.

But what exactly is IBAN, and why is it so important? In this article, we’ll break it down so you know how IBAN ensures your money reaches the right account, safely and on time.

What is IBAN Number?

IBAN or International Bank Account Number, as the name suggests, is a bank account number identified by banks and financial institutions around the world during cross-border/domestic payments.

Check Live Exchange Rates

It was initially adopted by the ECBS (European Committee for Banking Standards) and, since 1997, has been established as an international standard under ISO 13616-1:2007.

When a SWIFT code identifies the recipient bank, IBAN identifies the recipient account inside that bank. Certain countries mandate the use of IBAN, so you will need it when you make international payments to those countries.

Have a look at the strongest currencies in the world!

What Is the Standard IBAN Structure?

IBAN consists of alphanumeric characters and its length varies depending on the country. It can be anywhere from 15 to 34 characters long.

When it comes to UAE IBAN numbers, they start with AE and consist of 23 alphanumeric characters. The infographic given below represents a standard IBAN format:

Here’s what the UAE IBAN Number – AE47 0331 2345 6789 0123 456 represents:

• AE – ISO Country code (UAE)
• 47 – Check digits for validating the IBAN
• 0331 2345 6789 0123 456 – BBAN (Basic Bank Account Number)

BBAN will have a fixed length per country. In the UAE, the first 3 digits in the BBAN represent the bank code to identify the bank and the next 16 characters represent the customer account number.

How to Find & Use IBAN

If you want to find your IBAN number, just log in to your online banking dashboard or check your bank statement. While doing international transfers, simply provide your IBAN along with the SWIFT code. This ensures your money is sent quickly, securely, and without errors.

Download the LuLu Money App and send money across borders. 

Why is an IBAN Number Important?

You know that a SWIFT code will help to ensure that your money reaches the right bank, right? Then what is the importance of IBAN? Let’s see.

Here’s why IBAN is important.

• Reduce errors – With IBAN, cash transfers will be error-free.
• Saving time – With minimal dependency on manual interpretation and validation of account details, international payments will be quicker.
• Secure – Before every transaction, each character will be validated to avoid errors, thus ensuring security.

What Happens If You Enter a Wrong IBAN Number?

Just imagine that you have sent a parcel and mentioned the wrong house number. What will happen? It will get delivered to the wrong destination, right? Similarly, if you’ve entered an incorrect IBAN, there are chances that it gets delivered to the wrong account.

But, in most cases, the system catches the error and your payment will bounce back. But if the IBAN is valid and actually belongs to another account, there are greater chances for the money to get deposited in that account. In such rare cases, it will be extremely difficult to recover the funds.

Hence, just as you double-check your SWIFT code, you should also verify your IBAN before confirming a transfer.

Have a look at the world currency symbols!

Frequently Asked Questions

Who can issue an IBAN?

The account-servicing financial institution has the right to issue an IBAN.

Is IBAN required for domestic transfers?

Yes, in certain countries like UAE, IBAN is required for international and domestic transfers.

Is IBAN a new account number?

No, IBAN is not a new account number. It is just an electronically-recognisable ISO standard format of your existing account number.

Is IBAN the same as SWIFT?

No, IBAN is required to identify the exact bank account while SWIFT is required to identify the bank. You will need both IBAN and SWIFT for cross-border payments.

Does every country use IBAN?

No, not all countries use IBAN. It is standard in Europe, the Middle East, and several other regions. Countries like the United States and Canada, however, use different systems.

Imagine you’re in the UAE, ready to send money to your family in Europe. Just when you think you’re done filling in all the details, you’re asked for something called a SWIFT code. If you’re hearing about it for the first time, questions start popping up: What is a SWIFT code? Where do I find it?

To answer this, we’ve broken down for you what a SWIFT code is, why it’s important, and how it makes your international transfers smooth and secure.

What Is a SWIFT Code?

A SWIFT code, also known as BIC (Bank Identifier Code) is an 8 to 11 character code used for routing international payments to the correct bank. It acts like an international postal address for banks. Just as your home address ensures your mail reaches your home, SWIFT code ensures your money reaches the correct bank.

Here’s what the 8 to 11 character code represent:

• First four characters represent the bank code.
• Fifth and sixth characters represent the country code.
• Seventh and eighth characters represent the location code.
• The last 3 digits represent the branch code and this is optional.

Here’s a simple breakdown of the Emirates NBD SWIFT Code, Mashreq Bank SWIFT Code, and Dubai Islamic Bank SWIFT Code for your reference:

Also Read: A journey through world’s currency symbols!

Why Do You Need a SWIFT Code?

While doing money transfers especially across borders, it is very important to ensure that it doesn’t get lost in the vast international banking network. Here comes the role of SWIFT codes. They act as the GPS coordinates for banks worldwide.

All international money transfers done without SWIFT codes could face delays, rejections, or even bounce back.

So, why is a SWIFT code important? Here are the key reasons:

• Ensure money reaches the correct bank securely without much errors or delays.
• Accepted by banks worldwide and makes global transfers faster and more reliable.
• Provide transparency and tracking for cross-border payments.

If you know the right SWIFT code, make the most of your transfer by checking the live rates now!

What Will Happen if You Enter the Wrong SWIFT Code?

If you enter the wrong SWIFT code, your money transfer may be delayed, rejected, or even returned by the bank. In certain cases, it can take several business days for your money to be transferred back to your account.

If the incorrect SWIFT code that you’ve entered belongs to another legitimate bank, your money might get deposited into the wrong account. Usually, this doesn’t happen because banks reject transfers when account details don’t match.

Additionally, for failed or recalled transactions, banks may charge extra fees. To avoid such situations, always double-check your SWIFT code before hitting “send”.

With the LuLu Money app, you don’t need to re-enter SWIFT codes every time. Just save them once and transfer with ease.

Frequently Asked Questions

How do I find my SWIFT code?

To find your bank’s SWIFT code, you can check the bank’s official website, your bank statement, your online banking account, or contact the branch directly.

Is a SWIFT code the same as an IFSC code?

No. A SWIFT code is used when you do cross-border transactions, while an IFSC code is used for the domestic transfers within India.

Is a SWIFT code mandatory for international transfer?

Yes, it’s using the SWIFT code, banks find out where to route your money. If it is missing or entered incorrectly, your transfer could face delays, rejections, or returns.

Is it safe to share my SWIFT code?

Yes, sharing your SWIFT code is safe and is necessary for international payments. It does not reveal your account number or allow anyone to access your funds.

Do I need both IBAN and SWIFT code for an international transfer?

Yes, you will need it in most cases. The SWIFT code tells you which bank the money is going to, and the IBAN shows the exact account within that bank.

Whether you’re shopping online, sending money home, or checking exchange rates, you will always come across a currency symbol. These small signs might seem simple but they actually carry centuries of history, identity, and power. They are a visual shorthand for economies, cultures, and connections.

With millions of our LuLu Money customers sending and receiving money across dozens of countries every day, we are part of a world filled with these symbols. Let’s find some of the world’s most important currency symbols shaping global transactions.

What is a Currency Symbol?

Before knowing about the world’s currency symbols, let’s first see what a currency symbol is. A currency symbol is a graphic sign used to represent the official currency of a country. For example, $ stands for the US Dollar, ¥ for both the Japanese Yen and Chinese Yuan, and ₹ for the Indian Rupee.

Here Are the World’s Currency Symbols

For better understanding, we’ve grouped currencies by their symbol families such as Dollar $, Pound £, Rupee ₹, and more. This way, you can find out which countries share the same currency roots.

The Dollar and Peso Family (̌$)

This group includes all currencies that use the dollar sign, either by itself or as part of a more specific symbol, making it one of the most commonly traded families in global exchange rates .

Want to see today’s rates in real time? Check the live exchange rates!

Check Live Exchange Rates

The Euro Family (€)

€ (Euro) with the currency code EUR is the official currency used in Andorra, Austria, Belgium, Croatia, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Montenegro, Netherlands, Portugal, Slovakia, Slovenia, Spain, and Vatican City.

The Pound Family (£)

This group includes currencies with the pound sign, either by itself or as part of a more specific symbol.

The Rupee Family (₹, Rs)

This group consists of currencies from South Asia that use a version of the Rupee symbol.

The Yen/Yuan and Won Family (¥, ₩)

These East Asian currencies are grouped by symbols that are unique to the region’s history and trade.

Here’s how AI will redefine money transfers in the future!

The Franc Family

This group of currencies is mostly used in Africa, originating from historical ties to the French Franc.

Symbols from Local Scripts and Unique Designs

This final group includes currencies with unique symbols, often based on their local language or a specific design.

Now you know about the world’s currency symbols. It’s interesting to know about their actual currency value. Take a look at this chart highlighting the world’s strongest and weakest currencies:

Frequently Asked Questions

What are the strongest and weakest currencies in the world?

As of now, the Kuwaiti Dinar (KWD) is the strongest currency in terms of exchange rate against the US Dollar, while Lebanese Pound (LBP) is the weakest.

How many official currencies are there in the world today?

Around 180 recognised currencies are in use around the world and this number will vary based on territories and regions that share currencies (like the Eurozone).

Why do certain countries use the same currency symbol?

Certain countries use the same currency symbol since they share the same historical or linguistic origins or to reflect their cultural or national identity.

Is there any difference between a currency code and a currency symbol?

Yes. A currency code is a standardised 3-letter ISO code (like USD, AED, EUR) used in international trade and banking. While a currency symbol is a graphic or visual sign used to represent the official currency of a country.

How are currency symbols chosen or designed?

Currency symbols are usually derived from historical abbreviations or specially designed to reflect a country’s culture and identity and at the same time remaining simple and globally recognisable. Once a symbol is finalised, they are officially approved by the country’s authorities and standardized through Unicode for worldwide use.

Have you ever travelled abroad and felt like an instant millionaire? You hand over your 50 AED note and get back a huge stack of local banknotes. At first, it’s exciting, until you realise those notes won’t buy as much as you thought.

That’s how currency values work. It isn’t about how much you have, but how much you can buy with that. Weaker currencies have much lower purchasing power when compared to the stronger ones.

In this blog, we’ll explore the 10 weakest currencies in the world right now and discover the reasons behind their low values.

Before we explore the weakest currencies, take a moment to check the live exchange rates and stay updated.

Check Live Exchange Rates

Now, let’s have a look at the world’s weakest currencies by comparing them against the US dollar.

Lebanese Pound (LBP)

Exchange Rate: 1 USD ≈ 89,600 LBP

The Lebanese Pound (LBP) or lira, is the weakest currency in the world. The currency lost its value after the banking sector crisis in 2019. Once pegged at 1,500 LBP per USD from December 1997 through January 2023, it lost over 98% of its value following the crisis. The Lebanese economy remains trapped in one of the worst financial crises, which was even worsened by hyperinflation, capital controls, and loss of foreign reserves.

Have a look at the strongest currencies in the world!

Iranian Rial (IRR)

Exchange Rate: 1 USD ≈ 42,000 IRR

Iranian Rial (IRR), the official currency of the Islamic Republic of Iran, first introduced in 1798 as a coin, is the second-lowest valued currency in the world. The currency started losing its value after the 1979 Islamic Revolution, which worsened during the Iran-Iraq war, and further declined after multiple international sanctions over its nuclear programme.

Vietnamese Dong (VND)

Exchange Rate: 1 USD ≈ 26,200 VND

Vietnamese Dong (VND), the official currency of Vietnam, is the third-lowest valued currency in the world. The currency, in use since 3 May 1978, was deliberately kept undervalued by the government to improve export competitiveness. Its low value raises import costs and at the same time boosts demand for Vietnam’s exports, which supports jobs and economic growth. The factors behind VND’s low value include a controlled exchange rate, large money supply, and inflation.

Sierra Leonean Leone (SLL)

Exchange Rate: 1 USD ≈ 22,600 SLL

Sierra Leonean Leone (SLL), the currency of Sierra Leone, is one of the weakest currencies in the world. Leone which was introduced on 4 August 1964, was worth more than the U.S. dollar until the 1980s.

But after inflation which continued for years, the value of leone started falling rapidly and now it reached a stage where over 22,000 leones are required to buy 1 U.S. dollar. Dependence on mineral exports, high inflation, and governance challenges are the reasons for the SLL’s low value.

Also Read: What is WPS in UAE?

Laotian Kip (LAK)

Exchange Rate: 1 USD ≈ 21,600 LAK

Laotian Kip (LAK), also known simply as the kip, the currency of Laos is another weakest currency in the world. In Laos, industrial diversification is limited, while the major dependence is on hydropower, agriculture, and mining. The major reasons for the currency’s weakness are rising foreign debt, inflation, and limited export base.

Higher import costs due to inflation increase the prices of goods and services. For Laotian families who receive remittances from abroad, this can mean more local currency in hand but reduced purchasing power.

Indonesian Rupiah (IDR)

Exchange Rate: 1 USD ≈ 16,300 IDR

Indonesian Rupiah (IDR), the official currency of Indonesia, is another weakest currency in the world and was introduced in 1946. Although being the largest economy in Southeast Asia, the currency is known to have the lowest value due to external shocks, capital outflows, and import costs. While IDR’s low value benefits exports and tourism, it increases costs for imports and foreign travel for Indonesians, keeping inflation risks in play.

Uzbekistani Som (UZS)

Exchange Rate: 1 USD ≈ 12,600 UZS

Uzbekistani Som (UZS), the official currency of Uzbekistan, is next in the list of the weakest currencies in the world. When it was introduced on 1 July 1994, 1 USD was equal to 25 UZS, but now the value has dropped to approximately 12,625 UZS. Limited industrial diversification, high inflation, and low foreign investment are the major reasons the currency remains weak.

Guinean Franc (GNF)

Exchange Rate: 1 USD ≈ 8,600 GNF

Guinean Franc (GNF), the official currency of Guinea, is next in the list. Although Guinea is known for its abundance of natural resources such as gold, bauxite, and diamonds, the currency remains weak. Reliance on exports for raw materials, high inflation, and a limited manufacturing sector weaken the currency’s value. Remittances from abroad are essential for supporting household incomes.

Paraguayan Guarani (PYG)

Exchange Rate: 1 USD ≈ 7,500 PYG

Paraguayan Guarani (PYG), the official currency of Paraguay, is another lowest-valued currency in the world. PYG’s low value reflects the country’s small, agriculture-dependent economy. Although its low value is useful in exports, it increases the costs of imported goods like fuel, machinery, and electronics.

The major reasons for the currency’s weakness are limited industrialisation, external vulnerabilities such as droughts or falling crop prices, and a limited presence in global trade.

Malagasy Ariary (MGA)

Exchange Rate: 1 USD ≈ 4,400 MGA

Malagasy Ariary, the official currency of Madagascar, is the tenth in the list of weakest currencies in the world. It reflects the island country’s political instability, poverty, and underdeveloped infrastructure. The country’s economy relies heavily on agricultural exports like vanilla, coffee, and cloves. Climate change and global price fluctuations can adversely affect the country’s economy.

Disclaimer: All exchange rates are subject to change at any time based on market conditions.

Frequently Asked Questions

Which is the tenth weakest currency in the world?

The tenth weakest currency in the world, in terms of exchange rate against the USD, is the Malagasy Ariary (MGA).

What is the world’s lowest currency in 2025?

The world’s lowest-valued currency in 2025 is the Lebanese Pound (LBP), trading at roughly 89,600 LBP per USD, making it the weakest currency in terms of exchange rate value.

Which is the No.1 currency?

Kuwaiti Dinar (KWD) is known as the No.1 currency and the strongest currency in the world.

Why do some currencies have low value?

Common causes of low currency value are high inflation, economic & political instability, sanctions, and limited economic diversification.

Is a weak currency always bad?

No. Although a weak currency raises import costs and reduces purchasing power, it can make exports more competitive internationally, which can boost local industries and tourism.

How does a weak currency affect money remittances?

Those who rely on money remittances from abroad may get more local currency, but inflation in their country often reduces its real value.

Where can I check live exchange rates?

You can check live exchange rates using the LuLu Money App or on the currency converter page to get updated and accurate rates before sending money abroad.

How Tiny Savings Can Build a Secure Financial Future

We live in a time where consumerism is rising and instant gratification drives our choices, often at the cost of financial discipline. Yet, the old saying “a penny saved is a penny earned” still holds immense value. Perhaps even more today than ever before. Saving is not just about putting away leftovers from your salary. It is about developing habits that secure your future and build wealth.

Why Saving is Important?

Saving money plays a foundational role in personal financial stability. It ensures that you’re not left vulnerable when faced with sudden expenses or emergencies. More importantly, consistent saving can help achieve long-term goals like buying a home, funding your child’s education, starting a business or enjoying a stress-free retirement.

But many people are sidetracked from saving because they feel their income is too small or their expenses are too high. This is a myth that needs to be busted. The truth is, even the tiniest savings can add up to a significant asset over time when done systematically and invested wisely.

The Power of Small and Regular Savings

Let’s take a simple example. Suppose you save just AED 5 a day (the cost of a small snack or tea) In a month, you’ll have saved AED 150. In a year that becomes AED 1,800. Over 10 years without even accounting for interest or investment returns, that’s AED 18,000.

Like any good habit, saving requires consistency and discipline. Here are some effective ways to adapt a saving habit:

1. Automate Your Savings

Set up an auto-debit from your salary or primary account into a savings or recurring deposit account. This ‘pay yourself first’ strategy ensures you save before you spend.

2. Start Small, Scale Gradually

If large amounts feel overwhelming, start with small contributions. As your income increases or as you learn to manage your expenses better, gradually increase your savings rate.

3. Track Your Spending

Use budgeting apps or a simple spreadsheet to track where your money goes. You’ll often find areas where you can cut back, perhaps unused subscriptions, frequent take-outs or impulse purchases.

4. Set Specific Goals

Saving becomes more motivating when tied to a goal.

The Mental and Emotional Benefits

Saving is not just about money. It gives you confidence and freedom. Knowing you have a financial reserve reduces anxiety, improves decision-making and empowers you to take calculated risks.

More importantly, it cultivates a mindset of delayed gratification, the ability to resist immediate temptations in favour of more significant long-term rewards.

Teaching the Next Generation

The earlier saving habits are taught, the more ingrained they become. Encourage children and teenagers to start saving from their allowances or small earnings. Let them open bank accounts, set goals or track progress and these lessons will last a lifetime.

No amount is too small when it comes to saving. The journey to financial security begins not with a lump sum but with a decision; a commitment to save today for a better tomorrow.

If you are in your 20s just starting your career or in your 50s, planning for retirement, it’s never too late to begin. Use the tools available, build the habit, stay disciplined and watch your small savings turn into a secure and prosperous future.

Imagine picking up your phone to send money from the UAE to your family in India — only to see that the INR amount showing today is less than what you saw yesterday. How did this happen? Why did the rate change? The reason? Exchange rate fluctuations.

So, what exactly is the exchange rate? And why does it change every time?

Let’s learn the reasons behind this and find out why your family receives more or fewer rupees for the same AED.

What Are Exchange Rates?

Exchange rates, also known as foreign exchange rates or forex, refer to one country’s currency value when compared to another country’s currency. If you are planning to send money from UAE to USA, the 1 AED you send is equivalent to 0.27 USD but this value is not constant). This is what we call the exchange rate.

Exchange rates can be floating or fixed. Here’s the difference:

• Floating exchange rate – Exchange rate where the currency’s value varies with events in the foreign exchange market.
• Fixed exchange rate – Exchange rate where the currency’s value is fixed or pegged to another currency, material goods, a set of currencies, or a measure of value such as gold or silver.

And these rates keep on changing based on several factors. Let’s see what those factors are.

Here’s Why Exchange Rates Fluctuate

If you’re someone who sends money abroad, travels internationally, invests overseas, or runs a global business, it’s important to know the live currency exchange rates and why they vary.

Check Live Exchange Rates

Now let’s have a look at the reasons as to why exchange rates fluctuate.

Interest Rates and Inflation

Both interest rates and inflation are interrelated. If a country faces high inflation, its currency’s value weakens over time. Hence, to improve the currency strength and thereby the purchasing power, the central bank of the country will raise interest rates.

Higher interest rates attract foreign investors who look for better returns, which in turn boosts demand and strengthens the currency’s value.

For example, if the UAE raises its interest rates while the USA keeps theirs steady, the dirhams become more attractive and the dollar weakens in comparison. That would directly affect the AED/USD exchange rate.

Political and Economic Stability

Investors prefer to put their money in countries that have strong governance, stable politics, and healthy economic growth. Those countries are expected to have stronger currencies.

Any uncertainties such as elections, conflicts, or economic slowdowns can pull back investors which can weaken the currency value.

Global Trade

If a country’s export prices rise faster than their import prices, it shows how stable the country’s economic situation is. This drives their currency demand leading to higher revenue and thereby strengthening the currency value.

National Debt Levels

A country that has high debt levels may need to borrow or print more currency which in turn leads to inflation and reduced investor confidence. This can weaken the currency value, so you will need more of that currency to buy a stronger currency. Conversely, low debt levels can strengthen the currency.

Have a look at the world currency symbols!

Market Speculation

When traders or investors feel that a currency will strengthen in the future, they buy large amounts of it, increasing demand and boosting its value. But fears of bad news or instability lead them to sell, weakening the currency. These speculative moves can cause sudden spikes or drops even before real economic changes occur.

For example, if the traders believe that the U.S. will raise the interest rates, they will buy more USD in advance expecting the currency value to strengthen soon. Conversely, if traders hear a rumor about an economic crisis, they might panic and sell USD, thus causing its exchange rate to drop instantly.

FAQs

How are currency exchange rates determined?

Currency exchange rates are determined by the supply and demand for different currencies in the global forex market. Factors like interest rates, inflation, political & economic stability, global trade, national debt levels, and market speculation influence this demand. In certain cases, central banks intervene to adjust or stabilize the rates.

How do forex rates affect businesses?

They affect businesses by bringing fluctuations in the cost of imports and the revenue from exports. With a weaker local currency, imports are more expensive but it can increase export earnings, while a stronger currency does the opposite. These variations can directly impact profits, pricing, and competitiveness in global markets.

How do forex rates affect an economy?

Forex rates can affect an economy by shaping the cost of imports & exports, which can thereby influence the trade balance and economic growth. Currency value fluctuations can influence inflation.

What does increased exchange rates mean?

Increased exchange rates mean the base currency is strong and can buy more of the other currency. For example, if the USD/INR rate rises from 84 to 85, one US dollar can now buy more Indian rupees, showing a stronger dollar relative to the rupee.

When is the best time to send money to get a better exchange rate?

There’s no fixed “best” time, as rates fluctuate daily based on global events. Monitoring trends or using rate alerts from transfer apps can help you send when the rate is favorable.

Can I lock an exchange rate before transferring money?

Some transfer services allow you to lock a rate for a short period, but not all providers offer this feature. In the LuLu Money App’s rate alert settings, you can set your desired rate alert and get notified at the right time.

Do money transfer apps show real-time exchange rates?

Yes, LuLu Money app shows real-time exchange rates which get updated frequently.

How fast are transfers processed through money transfer apps?

Transfers made through LuLu Money App get delivered within seconds.

The whistle has blown. LuLu Exchange is officially stepping onto the global pitch as the Regional Fintech Partner of the Argentine Football Association (AFA). This legendary moment kicked off in Dubai on July 22, 2025 — the day we joined hands with the legends. The significance of this collaboration was further enhanced by the presence of Argentina’s World Cup-winning coach, Lionel Scaloni.

As the real GOAT Lionel Messi once said, “You have to fight to reach your dream. You have to sacrifice and work hard for it.” We did. And this happened. The champions of world football have partnered with the champions of global transfers.

Why We Chose AFA

Who wouldn’t want to partner with the governing body of the reigning world champions? A team that continues to inspire millions, break records, and define what passion for the game looks like. As all Argentina football fans know, their legacy is built on heart, heritage, and history-making moments.

From Maradona’s magic to Messi’s brilliance, Argentina’s story is filled with unforgettable moments which is the same spirit that deeply resonates with the LuLu brand.

But if you ask why LuLu Exchange chose AFA, the answer goes deeper than just fame and fanbase. It’s about timing. It’s about passion. Who else lives and breathes those better than the blue-and-white warriors of Argentina?

For them, it’s about their people, not just trophies. For us, it’s all about YOU.

Just imagine football’s greatest moments — the last-minute goals, the unwavering focus, and the perfect passes at the perfect time that change the game. It’s about making every moment count.

Now think about a money transfer through the LuLu Money App. What really matters here is the urgency, the precision, and the perfect transfer at the perfect time that can change lives. A parent paying for school fees, a son supporting his parents, or a friend sending help in an emergency.

Football and remittances might seem like worlds apart, but at their core, they both demand the same thing: Getting it right when it matters most.

This Is a Partnership for the Present and the Future

Our partnership with AFA is currently set for an exciting one-year term, which is just the beginning of a bigger journey. This exciting partnership with AFA builds on our presence across 10 countries which is just the start of what’s to come.

Because be it a thrilling 90-minute match or a smooth 9-second money transfer, what matters is the connection that ties people together across borders.

Through this partnership, LuLu Exchange and LuLu Money aren’t just supporting a football team. We’re aligning with a movement. A movement that believes in dreams, in hard work, and in the people behind every goal, every transfer, every heartbeat.

Why Is This Special to You?

Wondering what this partnership means for you? You could enjoy exclusive rewards and match-day giveaways, join football-themed campaigns, unlock in-app surprises, win match tickets, and get your hands on official Argentina merchandise & jerseys.

And that’s just the beginning. Every time you send money through LuLu Money App, you’re one step closer to something legendary.

To all the fathers, mothers, sons, daughters, and friends who send money to support someone you love — you are the real champions. From today, you’re not doing it alone. You’re doing it with champions by your side.

More Than a Game

July 22, 2025, marks more than just the start of a sponsorship. It marks a shared mission, which is to inspire, empower, and connect communities across the globe. With Coach Lionel Scaloni gracing the kickoff event, we’re not just launching a campaign, we’re making a statement.

Whether you’re a die-hard Argentina supporter or someone who simply sends money with care, this partnership was built with you in mind.

The Game Is On – Are You In?

Just like a final-minute goal which can change the game, one tap can change everything. We’re teaming up with football’s greatest. And the best part? You’re on the team too. So lace up. Tap in. Let’s kick off this legendary journey together.

Download the LuLu Money App and join us as we kick off this legendary journey. Surprises are waiting for you and you won’t know when they’ll strike.

Have Questions? Here Are the Answers

Where did the LuLu x Argentina partnership event take place, and who participated?

The official partnership was announced at a grand event in Dubai on July 22, 2025. It was attended by Argentina’s World Cup-winning coach Lionel Scaloni, senior leaders from LuLu Financial Holdings, and top AFA executives.

Are there any special rewards like football merchandise or match tickets for LuLu customers as part of the LuLu x Argentina partnership?

Yes, of course. Through this partnership, all our users could get the opportunity to win exclusive rewards, enjoy match-day giveaways, take part in football-themed campaigns, unlock in-app surprises, and even get your hands on official Argentina merchandise, jerseys, and match tickets.

How do I take part in LuLu Exchange’s football-themed contests or events?

Just download the LuLu Money App to stay updated on all our upcoming football-themed contests and events. We will send you regular notifications and updates so that you never miss a chance to participate.

Will LuLu x AFA partnership continue until the 2026 FIFA World Cup?

Yes, LuLu x AFA partnership will continue until mid-2026 and will cover the period of the 2026 FIFA World Cup.

What’s in this partnership for someone who doesn’t follow football?

This isn’t just about football. It’s about adding value to all our customers. Even if you don’t follow the game, you still have the chance to win exclusive promotions to special giveaways.

Does this partnership mean LuLu Exchange is cheering only for Argentina?

No, not at all. While we’re proud to partner with AFA, what we aim for is to celebrate the energy of football, its unity, and global appeal for all football fans, no matter who they cheer for. LuLu Exchange is here to celebrate people, not just teams.