The cheapest currencies in the world in 2025: 10 currencies many people overlook

When it comes to the world’s lowest-valued currencies, it’s no coincidence but a result of deep economic issues. From runaway inflation, political conflicts, to lack of economic diversification, these currencies tell the story of countries facing common challenges.

Comparison Table: 10 Weakest Currencies

Major Factors Contributing to Currency Depreciation

Why are these currencies so weak? The answer lies in the combination of multiple issues: low interest rates, soaring inflation, poor fiscal management, and a lack of foreign exchange reserves. All these factors prevent central banks from effectively defending their currencies.

Detailed Look at the World’s Cheapest Currencies

1. Lebanese Pound (LBP): Economic Collapse

The Lebanese Pound has not been considered strong for a long time. Since Lebanon was still battling a financial crisis, starting in 2019, the country experienced the worst economic downturn in modern history. Hyperinflation reached triple digits, banking systems collapsed, and the government defaulted on debt in 2020.

In the parallel market, the Lebanese Pound has lost over 90% of its value. Although the official exchange rate is pegged to the US dollar, the reality on the ground is entirely different.

Details:

• Abbreviation: LBP
• Exchange Rate: 89,751.22 LBP/USD
• Policy: Multiple exchange rate system

2. Iranian Rial (IRR): Impact of Sanctions

The Iranian Rial is an interesting case of how economic isolation can destroy a currency. US sanctions and allied measures over several years, including strict nuclear program restrictions, have put immense pressure on Iran’s economy.

Additionally, Iran relies heavily on oil exports, lacks economic diversification, and faces persistent inflation. The result is that the IRR has been ranked among the weakest currencies for years.

Details:

• Abbreviation: IRR
• Exchange Rate: 42,112.50 IRR/USD
• Policy: Pegged to the dollar (officially) but operates under a floating system in practice

3. Vietnamese Dong (VND): Growing Economy but Weak Currency

Vietnam’s story is interesting because, despite strong economic growth over the past two decades, its currency remains weak. The Vietnamese central bank manages the dong’s float, allowing it to fluctuate only within set limits.

The real depreciation of the dong benefits Vietnam, as the country runs a trade surplus, is part of the global supply chain, and attracts foreign investment.

Details:

• Abbreviation: VND
• Exchange Rate: 26,040 VND/USD
• Policy: Managed floating system

4. Laotian Kip (LAK): Slow Developing Economy

Laos is one of the least developed countries in Southeast Asia, heavily reliant on agriculture, with limited industrial diversification and modest foreign investment. After the COVID-19 crisis, the kip faced high inflation and long-term economic challenges.

The central bank’s policy is to let the kip float under management, referencing the US dollar and Thai baht. Still, the weak currency reflects long-term stagnation.

Details:

• Abbreviation: LAK
• Exchange Rate: 21,625.82 LAK/USD
• Policy: Managed floating system

5. Indonesian Rupiah (IDR)：Large Economy but Weak Currency

Indonesia is one of Asia’s largest economies, with the fourth-largest population worldwide and clear economic growth over the past two decades. However, the rupiah remains relatively weak because Indonesia relies heavily on commodity exports.

The 1997 Asian financial crisis severely impacted the rupiah, and markets still consider the currency risky. The central bank sometimes intervenes, and foreign reserves are limited.

Details:

• Abbreviation: IDR
• Exchange Rate: 16,275 IDR/USD
• Policy: Free floating system

6. Uzbek Sum (UZS): Strictly Controlled Economy

Uzbekistan became independent from the Soviet Union in 1991 and introduced the sum in 1994. Although economic reforms since the mid-2010s have helped, the economy still depends on natural resource exports, with high inflation and limited diversification.

The sum remains undervalued due to government controls. Despite some liberalization efforts, depreciation and inflation remain significant challenges.

Details:

• Abbreviation: UZS
• Exchange Rate: 12,798.70 UZS/USD
• Policy: Free floating system

7. Guinean Franc (GNF)：Rich in Resources but Poor Management

Guinea is resource-rich, but political instability and corruption hinder development. Since introducing the Guinean franc in 1959, foreign investment has been limited.

The currency faces pressure because Guinea relies on agriculture and mining, with a lack of economic diversification and slow infrastructure development. The low value of the franc reflects these challenges.

Details:

• Abbreviation: GNF
• Exchange Rate: 8,667.50 GNF/USD
• Policy: Managed float system

8. Paraguayan Guarani (PYG)：Long-term Depreciation

The Guarani has a history of long-term depreciation, from the Chaco War in the 1930s to the debt crisis of the 1980s. Paraguay’s economy is relatively small, heavily dependent on agricultural exports, especially soybeans.

Chronic trade deficits, high foreign currency demand, and low Guarani demand keep the currency weak. These factors reflect ongoing fiscal management issues.

Details:

• Abbreviation: PYG
• Exchange Rate: 7,996.67 PYG/USD
• Policy: Free floating system

9. Malagasy Ariary (MGA)：Economy as Fragile as a Cathedral

The Ariary became the official currency of Madagascar in 2005, replacing the Malagasy franc. Interestingly, the Ariary is one of the few currencies not using a decimal system (1 Ariary = 5 Iraimbilanja).

Madagascar’s economy relies on agriculture, tourism, and resource exports. Weather events, political instability, and limited financial tools make the currency vulnerable.

Details:

• Abbreviation: MGA
• Exchange Rate: 4,467.50 MGA/USD
• Policy: Managed float system

10. Burundian Franc (BIF)：Poorest Country

Burundi is among the poorest countries globally. Its economy depends mainly on subsistence farming. Since introducing the Burundian franc in 1964, the currency has seen little change.

Burundi faces persistent trade deficits, limited industrial activity, reliance on foreign aid, high inflation, food insecurity, and political unrest. These factors make the economy fragile, and the franc ranks among the weakest.

Details:

• Abbreviation: BIF
• Exchange Rate: 2,977.00 BIF/USD
• Policy: Inflation-targeting monetary policy

What Drives the Cheapest Currencies

Understanding why a currency is so cheap involves viewing the exchange rate as a reflection of the country’s overall economic health.

Interest rates: Higher rates often attract foreign capital, increasing demand for the currency and raising its value. Conversely, low rates tend to do the opposite.

Inflation: It plays a critical role. Countries with low inflation usually see their currencies strengthen, while high inflation erodes value.

Current account balance: Provides insight into economic stability. Persistent deficits hinder investment and weaken the currency.

Recession: Leads to lower interest rates, halts capital inflows, and depresses currency value.

The world’s cheapest currencies serve as signals that international markets are accurately assessing a country’s economic management and stability.