The world's lowest-priced currency: 2025 overview

Introduction: Why Are There Currencies with Very Low Values?

The phenomenon of currencies with extremely low values results from various economic and political factors, ranging from hyperinflation to financial system instability, lack of foreign investment, and prolonged geopolitical conflicts. To understand why different countries face weak currencies, let’s analyze detailed case studies of the 10 most affected nations.

Comparison Table: The Lowest Valued Currencies

In-Depth Analysis: The 10 Weakest Currencies in the World

1. Lebanese Pound (LBP) - Severe Financial Crisis

Basic Information:

• Currency Code: LBP
• Issuing Country: Lebanon
• Current Exchange Rate: 89,751.22 LBP/USD
• Exchange Rate System: Multiple exchange rate system

History and Current Status:

The Lebanese Pound was established in 1939 and was once pegged to the French currency. It experienced stability in earlier periods, but the situation changed dramatically as Lebanon’s economy collapsed entirely.

Economic and Social Crisis:

Since 2019, Lebanon has faced its worst financial crisis in modern history, with triple-digit inflation, widespread poverty, and a banking system collapse. In 2020, the government defaulted on public debt, and the currency lost over 90% of its value in the parallel market, causing citizens to lose savings and trust in the financial system.

2. Iranian Rial (IRR) - Impact of Sanctions and Tensions

Basic Information:

• Currency Code: IRR
• Issuing Country: Iran
• Current Exchange Rate: 42,112.50 IRR/USD
• Exchange Rate System: Peg to USD (Official) / Managed float

Historical Background:

The Rial was introduced in the 19th century when Iran was called Persia. In 1932, a new Rial was introduced pegged to the British Pound. The 1979 Islamic Revolution led to new economic agreements and significant changes.

Widespread Devaluation:

The Rial has been among the world’s weakest currencies for years due to strict economic sanctions imposed by the US and allies. These sanctions have exerted pressure on the economy and limited growth potential. Ongoing geopolitical tensions, heavy reliance on oil exports, and soaring inflation have further depreciated the Rial. Poor economic management and disconnection from global markets have caused hyperinflation and currency instability.

3. Vietnamese Dong (VND) - Economic Growth vs. Weak Currency

Basic Information:

• Currency Code: VND
• Issuing Country: Vietnam
• Current Exchange Rate: 26,040 VND/USD
• Exchange Rate System: Managed float

Historical Changes:

After the Vietnam War ended and the country reunified, the Dong became the official currency. Initially, it was pegged to the Indian Rupee and the French Franc, but experienced volatility during the Asian financial crisis of 1997-1998.

Stability and Management:

Vietnam’s economy stabilized in the 21st century, and the Dong has adjusted well. The country uses a managed float system, allowing the currency to fluctuate within a range set by the central bank. Despite being weak against the dollar, this has been advantageous for Vietnam, as a trade surplus boosts competitiveness and exports.

4. Laotian Kip (LAK) - Underdeveloped Country with Limited Integration

Basic Information:

• Currency Code: LAK
• Issuing Country: Lao People’s Democratic Republic
• Current Exchange Rate: 21,625.82 LAK/USD
• Exchange Rate System: Managed float

Development and Challenges:

The Kip has been official since 1952, after Laos gained independence from France. Initially pegged to the French Franc, it became more volatile in the 1990s as Laos began economic reforms.

Low Development Level:

Laos is one of the least developed countries in Asia, relying heavily on agriculture and resource exports. It attracts very little foreign investment, and its industrial and service sectors are underdeveloped. These factors have kept the Kip under constant pressure, especially since the COVID-19 crisis, with high inflation, maintaining it as one of the world’s lowest currencies.

5. Indonesian Rupiah (IDR) - Large Economy with Weak Currency

Basic Information:

• Currency Code: IDR
• Issuing Country: Indonesia
• Current Exchange Rate: 16,275 IDR/USD
• Exchange Rate System: Free float

Currency Evolution:

The Rupiah has been used since Indonesia’s independence from the Netherlands in 1945. Initially, it was pegged to the Dutch Guilder, but experienced volatility during the 1997-1998 Asian financial crisis.

Growth and Currency Relationship:

Despite being the world’s 4th most populous country and experiencing significant economic growth over two decades, the Rupiah remains weak due to heavy dependence on commodity exports, making it sensitive to commodity price fluctuations. Central bank interventions are frequent, and limited foreign reserves can hinder stabilization efforts.

Economic Factors:

Indonesia’s economy is a fragile emerging market, vulnerable to global perceptions. The Rupiah often depreciates when investors seek safer assets. Tourism, foreign investment, and sustainable growth are key to strengthening the currency long-term.

6. Uzbek Sum (UZS) - Controlled Economy with Limited Diversity

Basic Information:

• Currency Code: UZS
• Issuing Country: Uzbekistan
• Current Exchange Rate: 12,798.70 UZS/USD
• Exchange Rate System: Free float

Historical Independence:

Uzbekistan was part of the Soviet Union until 1991, when it declared independence. The Sum has been used officially since 1994. Economic growth improved after reforms in the mid-2010s.

Structural Challenges:

Uzbekistan’s economy still relies heavily on natural resource exports, especially cotton. It has limited economic diversification. The Sum is tightly controlled by the government, with minimal foreign investment, and remains undervalued due to economic controls and reliance on agriculture.

Gradual Liberalization:

The government has begun slow economic liberalization, which may stabilize the Sum in the future. Currently, devaluation and inflation remain significant challenges, keeping it among the world’s lowest currencies.

7. Guinean Franc (GNF) - Instability and Lack of Diversification

Basic Information:

• Currency Code: GNF
• Issuing Country: Guinea
• Current Exchange Rate: 8,667.50 GNF/USD
• Exchange Rate System: Managed float

Historical Context:

After independence from France in 1958, Guinea adopted the Guinean Franc. The country has weak infrastructure and very limited foreign investment.

Economic Challenges:

The Guinean Franc needs to appreciate because Guinea relies on agriculture and mining. Political instability and corruption hinder currency strength. The low value reflects ongoing economic and political difficulties.

8. Paraguayan Guarani (PYG) - Dependence on Agriculture and Public Crises

Basic Information:

• Currency Code: PYG
• Issuing Country: Paraguay
• Current Exchange Rate: 7,996.67 PYG/USD
• Exchange Rate System: Free float

Historical Development:

The Guarani has a long history, officially used since 1945. Paraguay has experienced multiple crises and hyperinflation, including the Chaco War and public debt crises.

Dependence and Limitations:

Paraguay’s economy relies on exports of agricultural and livestock products. This dependence makes the currency vulnerable to commodity price swings. The country faces persistent trade deficits, increasing demand for foreign currency and reducing Guarani’s value. Main challenges include reliance on agriculture, rising debt, and a small economy, making the Guarani one of the world’s lowest valued currencies.

9. Malagasy Ariary (MGA) - Development Issues and High Inflation

Basic Information:

• Currency Code: MGA
• Issuing Country: Madagascar
• Current Exchange Rate: 4,467.50 MGA/USD
• Exchange Rate System: Managed float

Currency Characteristics:

Madagascar’s Ariary became official in 2005, replacing the Malagasy Franc. Notably, MGA is one of the few currencies in the world not using decimal systems; 1 Ariary equals 5 Iraimbilanja.

Economic Structure:

Madagascar’s economy depends mainly on agriculture, tourism, and resource exports. Despite some stability, it faces risks from weather events and political instability. Widespread poverty and limited financial tools hinder efforts to combat inflation and external shocks. These factors contribute to its low currency value, making the Ariary one of the lowest in the world.

Factors Influencing Exchange Rates

Exchange rates are influenced by numerous economic factors, including:

Interest Rates: Higher interest rates often attract foreign investment, increasing currency demand and value.

Inflation: Countries with low inflation tend to have stronger currencies; high inflation erodes value.

Current Account Balance: A deficit can hinder investment and weaken the currency.

Economic Recession: Leads to lower interest rates, reduced capital inflows, and currency depreciation.

All these factors combine to create conditions that result in the world’s lowest-valued currencies, reflecting economic challenges, instability, and crises faced by these nations.