The lowest-priced currencies: Analysis of the 10 weakest currencies in 2025

Reasons Why Some Currencies Are Depressed

Many factors contribute to the lack of strength of low-valued currencies worldwide, ranging from hyperinflation, lack of economic diversification, to decreased foreign investment. Political risks, conflicts, and economic sanctions policies also play a role. These factors combine to produce various low-valued currencies.

Indicators Affecting Currency Value

High interest rates often attract foreign capital inflows, increasing demand for the local currency and boosting its value. Conversely, soaring inflation causes low-valued currencies to depreciate further. Countries with low inflation tend to see their currencies strengthen. A current account deficit can hinder investment, leading to a weaker currency.

Comparison Table: The Lowest Valued Currencies

In-Depth Analysis: Each Low-Valued Currency

###Lebanese Pound (LBP): From Stability to Severe Crisis

The Lebanese Pound was first used in 1939, replacing the French Franc. Lebanon initially pegged it to the US dollar, but over the past few decades, the country faced severe economic and political crises.

Lebanon experienced a major downturn—the worst in modern times. Since 2019, the country has seen triple-digit inflation, widespread poverty, and a banking system collapse. The government defaulted on debt in 2020, causing the currency to lose over 90% of its value on the black market.

LBP Currency Data:

• Exchange Rate: 89,751.22 LBP/USD
• Policy: Multiple exchange rates, not truly fixed, despite official pegs

###Iranian Rial (IRR): Impact of Sanctions and Tensions

The Rial first appeared in the 19th century during Persia. The new “Iranian Rial” was introduced in 1932, pegged to the Pound Sterling. However, after the 1979 Islamic Revolution, the Pahlavi monarchy was overthrown, leading to significant political and economic changes.

This currency is considered one of the weakest globally, as Iran has been under US and allied sanctions for years. This has pushed the economy into greater isolation and limited growth potential.

Geopolitical tensions, dependence on oil exports, and high inflation have all exacerbated its fragility. Decades of mismanagement and economic missteps have led to hyperinflation.

IRR Currency Data:

• Exchange Rate: 42,112.50 IRR/USD
• Policy: Officially pegged to the US dollar (, but floating somewhat in practice)

###Vietnamese Dong (VND): From Risk to Stability

Vietnam was divided into North and South in 1954, each developing its own currency, the “Dong,” after the war. The Dong became the national currency of a unified Vietnam.

Initially, this currency struggled with heavy inflation, devaluation, and frequent economic reforms. However, since the 2000s, Vietnam escaped volatility, and the Dong stabilized.

Vietnam uses a managed floating system (, not pegged directly to the USD but allowed to fluctuate within limits set by the central bank.

Despite economic growth, the currency remains weak due to strict controls and limited liquidity. However, a low currency is advantageous for Vietnam, as the country records trade surpluses, providing a competitive edge.

VND Currency Data:

• Exchange Rate: 26,040 VND/USD
• Policy: Managed floating, referencing a basket of currencies

)Laotian Kip ###LAK(: An Economy Dependent on Agriculture

The Kip was introduced in 1952, three years after Laos gained independence from France. Originally linked to the French Franc, it underwent several reforms in the 1990s, increasing volatility.

Laos is one of the least developed countries in Southeast Asia, with an economy reliant on agriculture and resource exports. Foreign investment remains insufficient, and the industrial and service sectors lack liquidity.

The currency is pressured by high inflation and post-COVID economic crises. Underdevelopment and global integration are inadequate. Laos depends heavily on agriculture, with limited industrialization, making the currency undervalued on the global market.

LAK Currency Data:

• Exchange Rate: 21,625.82 LAK/USD
• Policy: Managed float, pegged to USD and Thai Baht

)Indonesian Rupiah ###IDR(: Trade Surplus and Fragility

The Rupiah has long been considered a low-value currency. As a developing market with high inflation, it has depreciated over time. Indonesia gained independence from the Netherlands in 1945 and adopted the Rupiah.

Initially, the Rupiah was linked to the Dutch Guilder. Throughout the 20th century, it faced numerous upheavals, high inflation, instability, and the 1997–1998 Asian financial crisis, which marked its decline.

Despite Indonesia’s large population and growth over the past two decades, the currency remains fragile due to heavy reliance on commodity exports, making it vulnerable to price swings. The central bank often intervenes, and foreign reserves are limited.

IDR Currency Data:

• Exchange Rate: 16,275 IDR/USD
• Policy: Free float

)Other Currencies: UZS, GNF, PYG, MGA, BIF

Uzbek Sum ###UZS(: Used since 1994 after independence. The economy started to strengthen in the mid-2010s but still relies on natural resources and suffers from high inflation. Heavy state controls and limited foreign investment keep the currency low.

Guinean Franc )GNF(: Used since 1960 after independence from France. Weak infrastructure, political instability, ongoing economic crises, and dependence on mining have caused the currency to plummet.

Paraguayan Guarani )PYG(: Used since 1845. The country has experienced multiple crises and inflation episodes. Dependence on agricultural exports, trade deficits, and rising debt have weakened the currency.

Malagasy Ariary )MGA(: Used since 2005, replacing the Malagasy Franc. It is one of the few non-decimal currencies ()1 Ariary = 5 Irambilanja(). The economy relies on agriculture, tourism, and resources, but widespread poverty and limited financial tools keep the currency undervalued.

Burundian Franc )BIF(: Used since 1964 after independence from Belgium. Burundi is one of the poorest countries. Its economy is subsistence-based, with trade deficits, limited industry, and political instability, leading to the currency being among the lowest.

Global Factors Affecting Currency Values

Interest rates, inflation, public debt, political stability, and current account balances influence exchange rate fluctuations.

Higher interest rates attract more foreign investment, increasing demand and value. High inflation erodes currencies. Countries with low inflation tend to see their currencies strengthen.

A current account deficit hampers investment and weakens currencies. Recessions lower interest rates, prompting capital outflows and depreciation.

These factors explain the emergence of the least valued currencies worldwide.