Highlight: 10 currencies with the lowest rankings in the global market. Economic collapse is the reason.

The fact that the cheapest currency appears is no coincidence. Behind these low exchange rates are complex economic stories, from failed finance, political instability, to soaring inflation and reliance on a single resource. Let’s delve into why economic collapses change the game of currency exchange.

Overview of Exchange Rates: The Weakest Global Currencies

Good economic equations: where can the cheapest currencies go? Let’s look at the details.

###Lebanese Pound (LBP): Rapid Collapse

Lebanon is a prime example of a financial crisis. The Lebanese pound has depreciated over 90% in the shadow market compared to the official rate after a long period of parity with the US dollar.

The country faces a chaotic backdrop: structural political issues, weak government, depleted natural resources, and nearly frozen banking sector. Triple-digit inflation and limited cash systems have lowered the living standards of ordinary people.

Currency details:

• Abbreviation: LBP
• Country: Lebanon
• Exchange rate: 89,751.22 LBP/USD
• System: Multiple unstable exchange rate tiers

###Iranian Rial (IRR): Sanctions, what are they?

Iran is a classic case study of economic sanctions. Since 1979, after major political upheaval, the country faced the first layer of sanctions from the US and allies.

As a result, foreign investment dried up, trade was limited, and the economy became overly dependent on oil. Inflation soared endlessly, yet the financial system continued to be reinforced.

Currency details:

• Abbreviation: IRR
• Country: Iran
• Exchange rate: 42,112.50 IRR/USD
• Policy: Rigid peg system lacking flexibility

###Vietnamese Dong (VND): Strategic value

Vietnam has evolved differently. After the end of the war and reunification, the dong needed rebuilding. Although the exchange rate is weak, it is Vietnam’s strength in the domestic economy.

The weak currency boosts exports, making goods cheaper and more competitive. The central bank manages the exchange rate cautiously with policies.

Currency details:

• Abbreviation: VND
• Country: Vietnam
• Exchange rate: 26,040 VND/USD
• Policy: Managed floating system

###Laotian Kip (LAK): Simplicity and poverty

Laos is a fragile economy with no real power. It is a developing economy lacking diversification, with subsistence agriculture dominating. Dependence on a single resource, political instability, and minimal foreign investment.

Result? The kip remains among the poorest.

Currency details:

• Abbreviation: LAK
• Country: Laos
• Exchange rate: 21,625.82 LAK/USD
• Policy: Managed floating system

###Indonesian Rupiah (IDR): Fragile power

Indonesia is one of Southeast Asia’s largest economies, but the IDR remains weak because the country relies heavily on commodity exports. When commodity prices fall, the economy drags down and the currency follows.

Central bank interventions often indicate underlying fragility.

Currency details:

• Abbreviation: IDR
• Country: Indonesia
• Exchange rate: 16,275 IDR/USD
• Policy: Free floating system

###Uzbek Sum (UZS): Post-Soviet survival

Uzbekistan left the Soviet Union 30 years ago, but its economy still heavily depends on natural resource exports. Strict currency controls have not increased stability. Reforms have just begun, but effects are not yet clear.

Currency details:

• Abbreviation: UZS
• Country: Uzbekistan
• Exchange rate: 12,798.70 UZS/USD
• Policy: Free floating system (new)

###Guinean Franc (GNF): Resources don’t help

Guinea is rich in minerals but is plagued by political chaos, instability, corruption, and unproductive resource management. Resources have fallen into the hands of a few, and the country remains poor.

Currency details:

• Abbreviation: GNF
• Country: Guinea
• Exchange rate: 8,667.50 GNF/USD
• Policy: Managed floating system

###Paraguayan Guarani (PYG): Agricultural economy in crisis

Paraguay has a long history of war and debt crises. It still relies heavily on agriculture, especially soybeans. Chronic trade imbalances and insufficient investment have pushed the population to seek foreign currency.

Currency details:

• Abbreviation: PYG
• Country: Paraguay
• Exchange rate: 7,996.67 PYG/USD
• Policy: Free floating system

###Madagascar Ariary (MGA): Simplicity makes it vulnerable

Madagascar revalued its currency in 2005, effectively resetting its finances. The economy remains fragile, dependent on tourism, agriculture, and natural resources. Weather risks and instability pressure the economy.

Currency details:

• Abbreviation: MGA
• Country: Madagascar
• Exchange rate: 4,467.50 MGA/USD
• Policy: Managed floating system

###Burundian Franc (BIF): Among the poorest to set

Burundi is one of the poorest countries in the world, with subsistence at its core. Long-standing trade deficits, food insecurity, and instability have kept the currency weak, with no one able to strengthen it.

Currency details:

• Abbreviation: BIF
• Country: Burundi
• Exchange rate: 2,977.00 BIF/USD
• Policy: Tight monetary policy

The miracle of indicators: why do the cheapest currencies happen?

Inflation, interest rates, political stability, trade, current account, central bank reserves—all work together like a complex engine.

High interest rates attract foreign investment, pushing up prices. But when inflation becomes toxic, investors flee. Political instability causes currencies to plummet rapidly.

The cheapest currencies are not just numbers—they tell stories of crises and challenges.