What is the Cheapest Currency in the World in 2025? The Top 10 Currencies in collapse

When you withdraw money from an ATM and receive a bundle of banknotes that looks like it came out of a board game, something is seriously wrong with the local economy. This is not fiction: in several countries, the population deals daily with currencies that have lost value so dramatically that it has become routine to see people’s financial lives compromised.

While Brazil ended 2024 as the most devalued currency among the major global economies (a decrease of 21.52%), there are nations where the situation transcends any comparison. The 2025 scenario intensified this trend: persistent inflation, political instability, and economic crises deepened the collapse of already weakened currencies.

The question guiding this article goes beyond simple economic curiosity: which currency is the cheapest in the world and what macroeconomic situation does it reflect? What triggers turn a currency into worthless paper? And what does this mean for investors and travelers?

The Mechanisms Behind Devaluation: Why Currencies Collapse

A currency’s fragility is never an isolated circumstance. It is always a convergence of pressures that erodes market and public confidence. Understanding these factors is essential to grasp which currency is the cheapest in the world and why.

Galloping inflation: While Brazil monitors indices close to 5% in 2025, some countries experience scenarios where prices double monthly. This phenomenon, known as hyperinflation, destroys savings, discourages investment, and forces the population to seek refuge in foreign currencies or cryptocurrencies.

Lack of institutional stability: Scams, internal conflicts, transitional governments. Without legal security, external capital leaves the country, and the local currency becomes a symbol of extreme risk.

Economic isolation: International sanctions and trade blockades cut off access to the global financial system. The result is predictable: the local currency becomes unusable for external transactions.

Insufficient international reserves: A Central Bank without enough dollars cannot defend its currency. Collapse becomes a matter of time.

Mass capital flight: When even citizens no longer trust the national currency, preferring to store foreign currency informally, the maximum warning signal is triggered.

The 10 Weakest Currencies in the World Today

Based on updated quotations and international economic analyses, here is the overview of the currencies that have lost the most purchasing power:

1. Lebanese Pound (LBP) – Total Collapse

Quote: 1 million LBP ≈ R$ 61.00

Lebanon presents the most critical scenario. Officially, the rate should be 1,507.5 pounds per dollar, but in the real market, the quotation exceeds 90,000 pounds per dollar. The crisis that erupted in 2020 has never been resolved. Banks limit withdrawals, shops refuse the local currency, and even ride-share drivers demand payment in dollars. This is the ultimate example of which currency is the cheapest in the world in an irreversible situation.

2. Iranian Rial (IRR) – Sanctions that Destroy Value

Quote: R$ 1.00 ≈ 7,751 rials

American economic sanctions turned the rial into a third-world currency. With just R$ 100, anyone becomes a “millionaire” in rials. Multiple parallel exchange rates exist simultaneously. Faced with this reality, young Iranians have migrated massively to cryptocurrencies, which now serve as a more reliable store of value than the sovereign currency.

3. Vietnamese Dong (VND) – Structural Weakness

Quote: ~25,000 VND per dollar

Unlike other cases, Vietnam has an expanding economy. However, the dong remains historically weak due to monetary policy choices. Tourists enjoy: withdraw a few million dong and feel wealthy. For the local population, it means expensive imports and limited international purchasing power.

4. Laotian Kip (LAK) – Small Economy, Great Weakness

Quote: ~21,000 LAK per dollar

Laos faces a reduced economy, dependence on imports, and chronic inflation. The kip is so devalued that border traders with Thailand often prefer Thai baht.

5. Indonesian Rupiah (IDR) – Economic Giant with a Weak Currency

Quote: ~15,500 IDR per dollar

An intriguing paradox: Indonesia is Southeast Asia’s largest economy, but its rupiah has remained among the weakest globally since 1998. For Brazilian tourists, Bali offers surprisingly low costs.

6. Uzbek Sum (UZS) – Legacy of a Closed Economy

Quote: ~12,800 UZS per dollar

Despite recent economic reforms, Uzbekistan carries decades of an isolated economy in its currency. The sum still reflects this heritage, remaining weak even with modernization efforts.

7. Guinean Franc (GNF) – Wealth in Resources, Poverty in Currency

Quote: ~8,600 GNF per dollar

Equatorial Guinea has abundant gold and bauxite, but political instability and corruption prevent this natural wealth from translating into currency strength.

8. Paraguayan Guarani (PYG) – Traditional Weakness

Quote: ~7.42 PYG per real

Our South American neighbor maintains a relatively balanced economy, but the guarani is historically weak. As a result, Ciudad del Este remains a paradise for Brazilian shoppers.

9. Malagasy Ariary (MGA) – Poverty Reflected in the Currency

Quote: ~4,500 MGA per dollar

Madagascar is among the poorest nations on the planet. Its ariary reflects this reality: imports cost proportionally much more, and international purchasing power is virtually nonexistent for the population.

10. Burundian Franc (BIF) – Instability in Numbers

Quote: ~550 BIF per real

Burundi closes the ranking with a currency so devalued that volume purchases require physically transporting bags of money. The country’s chronic political instability directly impacts the national currency.

Reflections for Investors and Observers

Which currency is the cheapest in the world is not merely an academic curiosity. It represents an economy in extreme fragility, where confidence has evaporated and institutions fail to protect savings.

For those following financial markets, several lessons emerge: devalued currencies may seem like speculative opportunities, but they carry immense risks. Countries with collapsing currencies face structural crises that go beyond exchange rate fluctuations.

On the other hand, these disparities create real opportunities in tourism. Destinations with weakened currencies offer excellent cost-benefit for travelers with dollars, euros, or reais in hand.

Monitoring how currencies collapse provides a living lesson in macroeconomics: inflation, corruption, institutional instability, and lack of governance directly impact people’s purchasing power. This understanding becomes essential not only for investors but for any citizen seeking to understand how the global economy works.