The world's weakest currency in 2025: Global economic challenges

There are certain currencies worldwide that have continuously depreciated due to fundamental economic issues such as severe inflation, economic system imbalances, foreign investment losses, political conflicts, and international sanctions pressures. This article will explore the differences among these currencies and analyze the context following the section titled “The Cheapest Money in the World.”

Summary Table of the Cheapest Currencies

The Cheapest Money in the World - Analytical Details

1. Lebanese Pound (LBP)：Severe Economic Crisis

The Lebanese Pound, also called the Lira, has been the official currency of Lebanon since 1942, inherited from the French Franc. It was originally pegged to the US dollar but collapsed due to prolonged economic downturns and political turmoil.

Overview of Lebanon’s Crisis

Lebanon is experiencing its most significant economic recession since 2019. The country has entered hyperinflation, with many citizens falling into poverty. Banking systems have halted operations, and the government defaulted on debt in 2020. The currency’s value has dropped over 90% in the gray market.

Currency Characteristics

• Code: LBP
• Issuer: Lebanon
• Exchange Rate: 89,751.22 LBP per 1 USD
• Method: Multiple exchange rates, no official peg or fixed rate despite normal pegged rates

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

The Rial was introduced in the 19th century when Iran called itself Persia. In 1935, the modern Rial was introduced, initially pegged to the British Pound. After the Islamic Revolution in 1979, the Pahlavi monarchy was overthrown, leading to drastic economic and currency changes.

Factors Causing Rial Devaluation

The Rial has suffered from heavy inflation due to US and allied sanctions, which have been strictly enforced for decades. Over-reliance on oil exports, high inflation fears, and disconnection from global trade have all contributed. Nuclear issues, wars, and ineffective government management have caused hyperinflation and loss of value.

Currency Data

• Country: Iran
• Abbreviation: IRR
• Exchange Rate: 1 USD = 42,112.50 IRR
• Policy: Pegged to the US dollar (Official), resulting in a managed float system

3. Vietnamese Dong (VND)：From Concerns to Stability

In 1954, Vietnam was divided into North and South, each creating its own currency. After the Vietnam War ended in 1975, the Dong was unified as the official currency of Vietnam.

Initial Challenges and Recovery

Initially, the Dong faced high inflation and loss of value, with irregular exchange rates and multiple economic reforms. From 2000 onward, Vietnam’s economy stabilized somewhat, and the Dong appreciated slightly.

Monetary Policy and Impact

Vietnam employs a managed floating exchange rate system, meaning the Dong is not pegged to the dollar but can fluctuate within a range set by the central bank. The Dong’s depreciation has been limited by strict controls and limited foreign reserves, but this has benefited Vietnam due to its trade surplus, enhancing competitiveness.

Currency Characteristics

• Code: VND
• Issuer: Vietnam
• Rate: 1 USD = 26,040 VND
• Policy: Managed floating, referencing a basket of currencies

( 4. Laotian Kip )LAK###：Delayed Economic Development

The Kip has been the official currency of Laos since 1955, three years after independence from France. Originally pegged to the French Franc, it began to move more actively in the 1990s following economic reforms.

General Economic Conditions

Laos is among the least developed countries in Asia. Economic growth has lagged behind neighboring countries due to reliance on agriculture and natural resource extraction. Foreign investment is limited, and the service and industrial sectors face underdevelopment.

Reasons for Devaluation

After the COVID-19 crisis, the Kip faced significant pressure, with soaring inflation and sluggish economic recovery. It has become one of the weakest currencies globally due to slow development and limited integration with the global system.

Currency Data

• Code: LAK
• Issuer: Lao People’s Democratic Republic
• Rate: 1 USD = 21,625.82 LAK
• Policy: Free float under control, pegged to the US dollar and Thai Baht

( 5. Indonesian Rupiah )IDR###：A Large Country with a Weak Currency

The Rupiah has long been known as a cheap currency. As a new market status and with high inflation, the Rupiah has continually depreciated. Indonesia gained independence from the Netherlands in 1949 and adopted the Rupiah shortly thereafter, initially pegged to the Dutch East Indies currency.

Experience of Volatility

The Rupiah has experienced instability multiple times in the 20th century, from hyperinflation to economic balancing and political turmoil. The Asian financial crisis of 1997-1998 was a major blow to Indonesia’s economy and currency.

Main Data and Issues

Despite being the fourth most populous country and having significant economic growth over the past two decades, the Rupiah remains weak due to heavy dependence on commodity exports, making it sensitive to global price changes. The central bank often intervenes to stabilize the market, and limited foreign reserves constrain this ability.

Currency Data

• Code: IDR
• Issuer: Indonesia
• Rate: 1 USD = 16,275 IDR
• Policy: Free float

( 6. Uzbek Sum )UZS###：Slow Reforms and High Inflation

Uzbekistan was part of the Soviet Union until 1991, when it declared independence and adopted the Sum as its currency. Officially introduced on July 1, 1994.

Reform Efforts

The economy began to differ after several reforms in mid-2010, but it still heavily relies on natural resource extraction. Inflation remains high, and economic risks are relatively low.

Factors Affecting Currency

The Sum has been heavily controlled by the government. Lack of foreign investment, combined with economic controls, has kept the currency undervalued. The economy is mainly agricultural, with limited industrial growth. The government has gradually liberalized the economy, which may stabilize the currency over time, but inflation and external shocks remain challenges.

Currency Data

• Code: UZS
• Issuer: Uzbekistan
• Rate: 1 USD = 12,798.70 UZS
• Policy: Free float

( 7. Guinean Franc )GNF###：Instability and Multiple Economic Challenges

The Guinean Franc was introduced after Guinea declared independence from France in 1958, replacing the old French Franc. The country’s infrastructure is inadequate, and foreign investment is limited.

Economic Difficulties

Guinea faces political instability and economic crises, causing the Franc to bear heavy pressure. The economy is underdeveloped, relying heavily on mining and resource exports. Low currency value reflects economic and political instability.

Reasons for Devaluation

The Guinean Franc needs to maintain its value due to reliance on agriculture and mining, but lacks industrial development. Political uncertainty and corruption hinder currency strengthening. The low value indicates economic and political troubles.

Currency Data

• Code: GNF
• Issuer: Guinea
• Rate: 1 USD = 8,667.50 GNF
• Policy: Managed float

( 8. Paraguayan Guarani )PYG###：Commodity Market Cycle

The Guarani has a long history, dating back to 1881 when Paraguay issued its own currency. Throughout history, Paraguay has faced multiple crises and inflation affecting the Guarani’s value, including the Chaco War (1932-1935) and public debt crises in the 1980s.

Economic Dependence

Paraguay’s economy relies heavily on agriculture and exports, making its currency vulnerable to global price fluctuations. The country has persistent trade deficits, increasing demand for foreign currency, while the Guarani’s demand diminishes.

Structural Challenges

A major challenge is Paraguay’s limited industrial base, mainly dependent on agriculture and exports. Debt levels are rising, and the Guarani remains weak due to the small and underdeveloped economy, despite some growth in agriculture, especially soybeans. The currency continues to depreciate.

Currency Data

• Code: PYG
• Issuer: Paraguay
• Rate: 1 USD = 7,996.67 PYG
• Policy: Free float

( 9. Malagasy Ariary )MGA(：Tourism and Resources Economy

The Ariary replaced the Malagasy Franc in 2005 as the official currency of Madagascar. It is one of the few non-decimal currencies in the world, with 1 Ariary = 5 Iraimbilanja.

Economic Status

Madagascar’s economy depends on agriculture, domestic tourism, and resource exports. It remains somewhat stable but faces risks from weather conditions and political instability. Poverty is widespread, and financial tools to combat inflation and external shocks are limited.

Currency Data

• Code: MGA
• Issuer: Madagascar
• Rate: 1 USD = 4,467.50 MGA
• Policy: Managed float with occasional central bank intervention

) 10. Burundian Franc ###BIF(：Poverty and Low Living Standards

The Burundian Franc has been the official currency since 1967, after independence from Belgium. It replaced the Belgian Congo Franc and has seen little structural change since.

Economic Challenges

Burundi is among the poorest countries globally. Its economy is subsistence-based, heavily reliant on agriculture. It has persistent trade deficits, high inflation, food insecurity, and political instability, all contributing to economic fragility.

Currency Data

• Code: BIF
• Issuer: Burundi
• Rate: 1 USD = 2,977.00 BIF
• Policy: Inflation targeting and liquidity management

Summary: Factors Determining Currency Strength

Exchange rates are influenced by many factors, including interest rates, inflation, public debt, political stability, and current account balances. All these factors affect currency volatility. For example, higher interest rates often attract foreign investment, increasing demand and currency value.

Another key factor is inflation: countries with low inflation tend to have stronger currencies, while high inflation erodes value.

Additionally, the current account balance indicates economic health. Persistent deficits can hinder investment and weaken the currency.

When economies are in recession, interest rates often fall, foreign capital inflows decrease, and currencies depreciate. All these factors contribute to the World’s Cheapest Money.