10 Currencies with the Lowest Values in the World in 2025 - Data and Analysis

The weak currencies are not a coincidence. Driven mainly by severe inflation, political instability, lack of economic diversification, and economic sanctions, this article will explain the details of the cheapest currencies in the world and analyze the underlying reasons for their devaluation.

Comparison Table of the 10 Cheapest Currencies

The Cheapest Currencies in the World - Detailed Analysis

1. Lebanese Pound (LBP) - The weakest currency in the world

The Lebanese Pound, also known as the Lira, has been the official currency of Lebanon since 1939, replacing the French Franc used during the mandate period.

Economic crisis leading to LBP collapse:

Lebanon is experiencing an unprecedented economic downturn. Since 2019, the country has faced triple-digit inflation, widespread poverty, and a stagnant banking system. In 2020, the Lebanese government defaulted on its debt, causing the Lebanese Pound to lose over 90% of its value in the unofficial exchange markets.

Currently, the Lebanese Pound operates under a multiple exchange rate system. Although there is an official peg, in reality, the currency floats freely under market pressure.

Key Information:

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

2. Iranian Rial (IRR) - Sanctioned currency

The Iranian Rial dates back to the 19th century, during the time Iran was known as Persia. In 1932, a new version of the Rial was introduced, pegged to the British Pound.

Impact of sanctions and geopolitical tensions:

The Rial has been under continuous pressure for years due to strict economic sanctions imposed by the US and international allies. This has squeezed the domestic economy and limited growth potential.

The currency is also affected by tense geopolitical relations, heavy reliance on oil exports, and soaring inflation caused by economic mismanagement. All these factors have made the Rial the cheapest currency in the world.

Key Information:

• Abbreviation: IRR
• Issuing Country: Iran
• Exchange Rate: 42,112.50 IRR/USD
• Policy System: Pegged to the US dollar (officially) but floating in practice

3. Vietnamese Dong (VND) - Currency that has undergone reform

The Dong was introduced in 1954 when Vietnam was divided into North and South. After the Vietnam War ended, the Dong became the national currency of unified Vietnam.

From instability to stability:

Initially, the Dong suffered from high inflation, devaluation, and frequent economic reforms. However, since the 2000s, Vietnam’s economy has stabilized, and the Dong has appreciated.

Today, Vietnam uses a managed float system, allowing the Dong to fluctuate within a band set by the central bank. Although the currency can weaken, this is advantageous for Vietnam, which runs a trade surplus, and a weaker currency helps make its exports more competitive globally.

Key Information:

• Abbreviation: VND
• Issuing Country: Vietnam
• Exchange Rate: 26,040 VND/USD
• Policy System: Managed float with a currency basket

4. Laotian Kip (LAK) - Currency of a less developed country

The Kip has been the official currency of Laos since 1952, three years after independence from France. Initially, it was pegged to the French Franc. In the 1990s, as Laos reformed its economy, the Kip became more volatile.

Economic stability delays:

Laos remains one of the slowest-growing economies in Southeast Asia. Its economy relies heavily on agriculture and resource exports. The country faces high inflation, trade deficits, limited industrial activity, and restricted foreign investment.

Since the COVID-19 crisis, the Kip has come under significant pressure, becoming one of the lowest-valued currencies. Slow economic development and limited integration into the global economy are key reasons.

Key Information:

• Abbreviation: LAK
• Issuing Country: Laos
• Exchange Rate: 21,625.82 LAK/USD
• Policy System: Managed float linked to USD and Thai Baht

5. Indonesian Rupiah (IDR) - Emerging market currency

The Rupiah has a long history, with a low nominal value. Despite Indonesia being the 4th most populous country and experiencing significant economic growth over the past 20 years, the Rupiah remains fragile.

Factors causing IDR depreciation:

Indonesia is a vulnerable emerging market economy sensitive to global investor sentiment. The Rupiah tends to fall under pressure when investors seek safer assets.

Although Indonesia has one of the largest economies in Southeast Asia, it relies heavily on commodity exports. It also faces inflation, trade deficits, and changing government policies. Tourism and foreign investment are crucial for supporting the currency’s long-term value.

Key Information:

• Abbreviation: IDR
• Issuing Country: Indonesia
• Exchange Rate: 16,275 IDR/USD
• Policy System: Free float

6. Uzbek Sum (UZS) - Currency of a recently liberalized country

Uzbekistan gained independence from the Soviet Union in 1991 and has used the Sum as its official currency since 1994. Economic growth improved after reforms in the mid-2010s.

Economic challenges of a controlled economy:

Uzbekistan’s economy still relies heavily on resource exports. It faces high inflation and a lack of diversification. The Sum is tightly controlled by the government, with limited foreign investment.

Gradual economic liberalization has begun, which may stabilize the currency in the future. However, inflation and devaluation remain significant challenges.

Key Information:

• Abbreviation: UZS
• Issuing Country: Uzbekistan
• Exchange Rate: 12,798.70 UZS/USD
• Policy System: Free float

7. Guinean Franc (GNF) - Currency of a poor country

Guinea gained independence from France in 1958 and introduced the Guinean Franc in 1959, replacing the French CFA franc. The country has poor infrastructure and limited foreign investment.

Instability and lack of diversification:

The Guinean Franc is under heavy pressure due to political instability and long-term economic crises. The economy depends heavily on resource exports, especially mining.

Political instability and corruption have hindered the currency’s strength. The low value of the Franc reflects ongoing economic and political challenges.

Key Information:

• Abbreviation: GNF
• Issuing Country: Guinea
• Exchange Rate: 8,667.50 GNF/USD
• Policy System: Managed float

8. Paraguayan Guarani (PYG) - Agricultural country’s currency

The Guarani has a long history since 1944, when Paraguay adopted its own currency. Throughout history, Paraguay has faced crises and high inflation, including the Chaco War (1932-1935) and the debt crisis of the 1980s.

Dependence on agricultural exports:

The economy relies heavily on agricultural exports, making the Guarani vulnerable to commodity price fluctuations. The country has persistent trade deficits, limited industrial activity, and depends on exports.

Demand for foreign currency has increased, while demand for the Guarani has decreased. This causes the currency to remain weak, despite growth in agriculture, especially soybean cultivation.

Key Information:

• Abbreviation: PYG
• Issuing Country: Paraguay
• Exchange Rate: 7,996.67 PYG/USD
• Policy System: Free float

9. Malagasy Ariary (MGA) - Special decimal system currency

The Ariary became the official currency of Madagascar in 2005, replacing the Malagasy Franc. It is one of the few currencies in the world not based on a standard decimal system, as 1 Ariary = 5 Iraimbilanja.

Madagascar’s economic situation:

Madagascar’s economy depends on agriculture, tourism, and resource exports. While somewhat stable, the country is vulnerable to climate events and political instability.

Widespread poverty and limited financial tools hinder efforts to combat inflation and external shocks. This results in the Ariary’s low value.

Key Information:

• Abbreviation: MGA
• Issuing Country: Madagascar
• Exchange Rate: 4,467.50 MGA/USD
• Policy System: Managed float with occasional central bank intervention

10. Burundian Franc (BIF) - The poorest currency

The Burundian Franc has been the official currency since 1964, after Burundi gained independence from Belgium. Its structure has remained largely unchanged since its introduction.

Fragile economy:

Burundi is one of the poorest countries globally. Its economy relies on subsistence agriculture. It suffers from chronic trade deficits, limited industrial activity, and heavy reliance on foreign aid.

High inflation, food insecurity, and political turmoil make the economy highly vulnerable. The Burundian Franc is among the lowest-valued currencies in the world.

Key Information:

• Abbreviation: BIF
• Issuing Country: Burundi
• Exchange Rate: 2,977.00 BIF/USD
• Policy System: Inflation targeting and liquidity management

Summary - Understanding the World’s Cheapest Currencies

Exchange rates are influenced by macroeconomic factors such as interest rates, inflation levels, public debt, political stability, and current account balance—all of which impact currency volatility.

Higher interest rates tend to attract foreign investors, increasing demand for the local currency and strengthening its value. Conversely, high inflation often weakens a currency, especially when inflation is uncontrolled.

A country’s current account balance offers deeper insight into economic health. Persistent deficits can hinder investment and cause currency depreciation. Therefore, the world’s cheapest currencies reflect economic and political challenges faced by nations, explaining why their exchange rates vary so dramatically.