What is the Cheapest Currency in the World in 2025? Meet the 10 Worst

When talking about the cheapest currencies in the world, we’re not just discussing exchange rates. We’re talking about economies that have faced structural collapses, uncontrolled inflation, and deep political crises. The question “what is the cheapest currency” reveals a lot about the economic fragilities of entire nations. In 2025, this scenario intensified: persistent inflation, geopolitical instability, and questionable monetary policy decisions turned certain currencies into symbols of economic despair. Meanwhile, the Brazilian real closed 2024 as the worst currency among major global economies, with a devaluation of 21.52% — but this is just the beginning of the story.

The Factors Behind the Cheapest Currencies

No currency becomes cheap by chance. When you follow financial markets for a while, you quickly realize that monetary weakness is always the result of a toxic combination of factors that destroy investor and local confidence.

Uncontrolled inflation is the first villain. While Brazil worries about around 5% inflation, some countries see prices rise exponentially month after month. This hyperinflation literally consumes savings, wages, and all family financial planning capacity. When the cost of living rises faster than the money printer can print notes, the result is devastating.

Chronic political instability amplifies the problem. Coups, civil wars, governments that last less than a year — when there’s no legal security, foreign capital immediately flees. Investors run away, and the local currency becomes essentially colored paper, with no real utility in international trade.

Economic sanctions act as an accelerant to this decline. When the international community isolates a country economically, it loses access to the global financial system. International trade becomes nearly impossible, and the local currency devalues at a dizzying speed. The U.S. has frequently used this tool in recent years, with devastating impacts on already fragile economies.

Insufficient international reserves leave the Central Bank defenseless. Without dollars in reserve to defend the currency, it plummets. It’s like trying to hold back a dam without water — the dynamics are doomed to collapse.

Finally, capital flight indicates that even citizens have lost confidence in the national currency. When people prefer to store dollars informally “under the mattress” rather than keep their assets in the local currency, you know the situation has reached critical levels.

The 10 Lowest-Value Currencies in the World in 2025

Based on exchange rate data and economic reports from 2025, here is the ranking of the currencies that suffered the most devaluation and severely undermine the purchasing power of their populations:

1. Lebanese Pound (LBP) – The Champion of Devaluation

The Lebanese Pound is the classic case of total collapse. According to 2025 data, 1 million LBP was worth approximately R$ 61. Officially, the exchange rate should be 1,507.5 pounds per dollar, but this rate has not existed in the real world for years. On the parallel market (where Lebanon actually trades), you need more than 90,000 pounds to buy 1 dollar. The 2020 crisis turned the currency into statistical fiction. Banks drastically limit withdrawals, stores only accept dollars, and even Uber drivers in Beirut refuse payment in Lebanese pounds. The economy is literally in collapse.

2. Iranian Rial (IRR) – Victim of American Sanctions

U.S. economic sanctions have rendered the rial virtually worthless. With only R$ 100, you become a “millionaire” in rials — which says everything about its devaluation. The Iranian government tries to control the exchange rate through decrees, but Iran’s streets operate with multiple parallel rates. The result? Young Iranians have migrated en masse to cryptocurrencies. Bitcoin and Ethereum have become the most reliable store of value, more than the central bank’s issued currency. When the population swaps official money for digital assets, you understand the depth of the crisis.

3. Vietnamese Dong (VND) – Structural Weakness

Vietnam’s case is different from the previous ones. The country has a growing economy, but the dong remains historically weak due to long-term monetary policy decisions. The approximate rate is 25,000 VND per dollar. It’s almost comical: tourists withdraw 1 million dong from ATMs and get an amount that looks like it’s from a heist movie. Great for tourism, terrible for Vietnamese citizens. Imports become very expensive, and international purchasing power disappears.

4. Lao Kip (LAK) – Dependence on Imports

About 21,000 LAK per dollar marks the Lao kip’s rate. Laos has a small economy, deep dependence on imports, and constant inflation. at the border with Thailand, many traders simply refuse the kip and demand Thai baht. When even regional neighbors reject your currency, it’s a clear sign.

5. Indonesian Rupiah (IDR) – The Southeast Asian Paradox

Indonesia is an important economy in Southeast Asia, but the rupiah has never strengthened. About 15,500 IDR per dollar. Historically, since 1998, the currency has been among the weakest in the world. Ironically, this weakness attracts Brazilian tourists: with only R$ 200 per day in Bali, you can live like a king.

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

Around 12,800 UZS per dollar. Uzbekistan has implemented significant economic reforms in recent years, but the sum still bears the weight of decades of isolated economy. The country tries to attract foreign investment, but the currency remains historically weak.

7. Guinean Franc (GNF) – Wasted Wealth

Approximately 8,600 GNF per dollar. Guinea is a paradox: rich in gold and bauxite, but its currency is one of the weakest in the world. Chronic political instability and corruption prevent natural resources from translating into monetary strength. It’s a classic case of wasted potential.

8. Paraguayan Guarani (PYG) – The Weak Neighbor

About 7.42 PYG per real. Paraguay has a relatively stable economy, but the guarani is traditionally weak. For Brazilians, this means Ciudad del Este remains a paradise for international shopping.

9. Malagasy Ariary (MGA) – Collapsed Economy

Approximately 4,500 MGA per dollar. Madagascar is among the poorest nations in the world, and the ariary reflects this brutal reality. Imports cost a fortune, and the population has virtually no international purchasing power.

10. Burundian Franc (BIF) – The Absolute Cheapest Currency

About 550.06 BIF per real. The Burundian franc tops our ranking as the ultimate symbol of devaluation. The currency is so weak that for significant purchases, people literally carry bags of physical money. Perpetual political instability is directly reflected in the value of the national currency.

Opportunities and Risks for Brazilian Investors

The ranking of the cheapest currencies isn’t just a curiosity. It’s a direct reflection of how politics, confidence, and economic stability determine a currency’s value. For Brazilian investors, some practical conclusions emerge:

First, fragile economies pose immense risks. Cheap currencies may seem like speculative gains, but most of these countries face deep structural crises. Investing in collapsing currencies is playing with fire.

Second, there are real opportunities in tourism and consumption. Destinations with devalued currencies offer significant financial advantages for those traveling with dollars, euros, or even reais. Your vacations go much further.

Third, observing this phenomenon is a living lesson in macroeconomics. Watching currencies collapse provides practical understanding of the real effects of inflation, corruption, and instability on people’s lives. This understanding is essential for any investment strategy.

The answer to “what is the cheapest currency” isn’t trivial. It reveals collapsing economies, suffering populations, and deeply unequal global markets. To protect against this volatility, investors need to seek assets that transcend national borders and aren’t affected by local inflation. International diversification and allocation in defensive assets are key strategies to preserve and grow wealth in times of global uncertainty.