The cheapest currencies compared to Thailand: The 10 weakest currencies in 2025

Currencies around the world vary greatly in value. The weakest currencies compared to the Thai baht reflect deep economic and political differences among countries. Main factors causing currency depreciation include high inflation rates, lack of economic diversification, political instability, and trade deficits. Let’s understand these currencies and the factors influencing their weakness relative to stronger currencies like the US dollar and Thai baht.

Comparison Table: Weakest Currencies Compared to Thai Baht

Top Weakest Currencies Against the Thai Baht in 2025

1. Lebanese Pound (LBP): Major Economic Crisis

The Lebanese Pound, also called “Lira,” is the weakest currency compared to Thailand and most countries worldwide. It has been Lebanon’s official currency since 1939, but over the past two years, it has depreciated over 90% due to prolonged economic and political crises.

Lebanon’s Economic Situation

Lebanon has experienced its worst economic downturn in modern history since 2019, with triple-digit inflation, widespread poverty, and a banking system in crisis. The government defaulted on debt in 2020, and the currency rapidly lost value on the black market. Without structural reforms, the currency is expected to remain weak.

Currency Details

• Abbreviation: LBP
• Issuing Country: Lebanon
• Current Exchange Rate: 89,751.22 LBP per 1 USD
• Exchange Policy: Multiple exchange rate system; de facto no strict peg

2. Iranian Rial (IRR): Sanctions and Tensions

The Rial is another of the world’s weakest currencies against Thailand. It originated in the 19th century when Iran was called Persia. The current Rial was introduced in 1932, pegged to the British Pound, but after the 1979 Islamic Revolution, the monarchy collapsed, leading to major economic changes.

Reasons for Rial’s Weakness

Iran’s Rial has been among the weakest for over a decade, due to US sanctions, heavy reliance on oil exports, ongoing geopolitical tensions, and hyperinflation. Economic mismanagement and sanctions have severely limited growth potential, causing the currency to plummet.

Currency Details

• Country: Iran
• Abbreviation: IRR
• Current Exchange Rate: 1 USD = 42,112.50 IRR
• Exchange Policy: Officially pegged to USD but effectively a managed float

3. Vietnamese Dong (VND): Growth Despite Weakness

The Dong has a complex history, initially issued in North and South Vietnam after 1954. Post-war reunification in 1975 made it the national currency. Despite its low value, Vietnam’s economy has stabilized and grown rapidly since the 2000s.

Notable Aspects of the Dong

A low exchange rate doesn’t mean a weak economy. Vietnam’s Dong experienced high inflation and devaluation in the past, but since the 2000s, economic reforms and growth have strengthened the country. Vietnam now has one of Asia’s fastest-growing economies, with managed floating exchange rates.

Currency Benefits

A weak Dong benefits exports, as it makes Vietnamese goods more competitive globally. Vietnam is a major manufacturing hub, especially in textiles and electronics.

Currency Details

• Abbreviation: VND
• Country: Vietnam
• Current Exchange Rate: 1 USD = 26,040 VND
• Exchange Policy: Managed float, referencing a basket of currencies

4. Lao Kip (LAK): Challenges of a Low-Income Economy

The Kip has been Laos’s official currency since 1952, initially pegged to the French Franc. Since the 1990s, it has experienced increased volatility amid economic reforms.

Reasons for Low Value

Laos is a low-income country heavily reliant on agriculture and resource exports. Limited foreign investment and underdeveloped industry and services sectors keep the currency weak. The Kip faces pressure from high inflation and economic challenges, especially after COVID-19.

Currency Details

• Abbreviation: LAK
• Country: Laos
• Current Exchange Rate: 1 USD = 21,625.82 LAK
• Exchange Policy: Managed float, pegged mainly to USD and THB

5. Indonesian Rupiah (IDR): Large Economy, Weak Currency

Despite being Southeast Asia’s largest economy, Indonesia’s Rupiah remains weak due to its status as a developing market and persistent inflation.

Historical Context

Indonesia gained independence in 1945, with the Rupiah introduced later. It was initially pegged to the Dutch Guilder, but faced high inflation, political instability, and the Asian financial crisis of 1997-98, which severely devalued the currency.

Structural Issues

Indonesia’s reliance on commodity exports makes its currency vulnerable to global price swings. Central bank interventions and limited foreign reserves also affect stability. The Rupiah’s low value reflects these vulnerabilities.

Currency Details

• Abbreviation: IDR
• Country: Indonesia
• Current Exchange Rate: 1 USD = 16,275 IDR
• Exchange Policy: Free floating

6. Uzbek Sum (UZS): Transition from Soviet Union

Uzbekistan’s currency, the Sum, replaced the Soviet ruble after independence in 1991. It was officially introduced in 1994.

Economic Development and Reforms

Economic growth has improved since mid-2010s reforms, but the economy still depends on natural resource exports, with high inflation and limited diversification. State control remains strong, and foreign investment is limited, keeping the currency weak.

Currency Details

• Abbreviation: UZS
• Country: Uzbekistan
• Current Exchange Rate: 1 USD = 12,798.70 UZS
• Exchange Policy: Free float

7. Guinean Franc (GNF): Natural Resources but Underdeveloped

Guinea’s Franc has been in use since independence in 1959, replacing the French Franc. The country’s infrastructure is weak, with limited foreign investment.

Political Instability and Economic Crisis

Guinea faces ongoing political instability and economic crises, heavily dependent on resource exports. Lack of economic diversification, corruption, and poor governance hinder currency strength. The GNF remains among the weakest.

Currency Details

• Abbreviation: GNF
• Country: Guinea
• Current Exchange Rate: 1 USD = 8,667.50 GNF
• Exchange Policy: Managed float

8. Paraguayan Guarani (PYG): Agriculture-Dependent

The Guarani was introduced in 1945. It has experienced multiple crises and inflation episodes, affecting its value.

Economic Risks

The economy relies heavily on agricultural exports, making the currency vulnerable to commodity price fluctuations. Persistent trade deficits and external shocks weaken the PYG.

Currency Details

• Abbreviation: PYG
• Country: Paraguay
• Current Exchange Rate: 1 USD = 7,996.67 PYG
• Exchange Policy: Free float

9. Malagasy Ariary (MGA): Non-decimal System

Madagascar adopted the Ariary in 2005, replacing the Malagasy franc. Uniquely, 1 Ariary equals 5 Iraimbilanja, not a decimal.

Economy and Risks

Dependent on agriculture, tourism, and resource exports, Madagascar faces weather and political risks. Poverty is widespread, and financial markets are limited, making the currency vulnerable.

Currency Details

• Abbreviation: MGA
• Country: Madagascar
• Current Exchange Rate: 1 USD = 4,467.50 MGA
• Exchange Policy: Managed float

10. Burundian Franc (BIF): Among the Poorest

Burundi’s official currency since 1964, the Franc replaced the Belgian Congo franc. Infrastructure remains weak.

Economic Conditions

Burundi is one of the poorest countries, with a subsistence economy, chronic trade deficits, limited industry, and heavy reliance on foreign aid. High inflation, food insecurity, political instability, and lack of resources keep the currency weak.

Currency Details

• Abbreviation: BIF
• Country: Burundi
• Current Exchange Rate: 1 USD = 2,977 BIF
• Exchange Policy: Managed float focusing on price stability and liquidity control

Factors Leading to the Weakest Currencies Against Thailand

Exchange rates are influenced by multiple factors: interest rates, inflation, public debt, political stability, and current account balances. These factors drive currency volatility and depreciation.

Key Components

• Higher interest rates attract foreign investment, increasing demand for the local currency and strengthening it. Conversely, low interest rates may push investors abroad.
• Inflation erodes currency value; countries with low inflation tend to see their currencies appreciate, while high inflation leads to depreciation.
• Current account deficits can weaken a currency by reducing foreign exchange reserves and investment inflows.
• Economic recession often results in lower interest rates, reduced foreign investment, and currency depreciation.

These factors explain why these currencies are among the weakest compared to Thailand and other strong currencies globally.

Summary

The weakest currencies against Thailand reflect economic, political, and managerial challenges. From Lebanon’s crisis to Burundi’s poverty, each faces unique issues causing their currencies to be undervalued. Understanding these currencies helps grasp the complexities of global forex markets and the drivers of exchange rate fluctuations. For finance, investment, or economic studies, knowing the reasons behind these weak currencies offers a comprehensive view of international economic systems.