What is the Cheapest Currency in the World? 2025 Ranking and Economic Analysis

Have you ever imagined what would happen if your salary lost half of its purchasing power in just a few months? This is the daily reality for millions of people living in countries with devalued currencies. While Brazil debated the dollar exchange rate at R$ 5.44 in 2025, there are nations where inflation and political instability have turned their currencies into symbols of economic fragility.

The real closed 2024 as the worst currency among the main ones with a decline of 21.52%, a significant movement. However, this number pales in comparison to other economies facing much more critical scenarios. In 2025, a global context of persistent inflation, geopolitical crises, and collapse of confidence created a scenario where some currencies reached historic levels of devaluation.

Understanding which is the cheapest currency in the world goes beyond financial curiosity. It reveals how politics, governance, and economic management are directly reflected in people’s lives. This article explores the 10 most devalued currencies on the planet and the mechanisms behind this situation.

Why Do Some Currencies Lose So Much Value?

Weak currencies never happen by chance. They are always the result of a perfect storm of economic and political factors:

Uncontrolled hyperinflation: When prices rise exponentially every month, savings and wages are literally consumed. While Brazil maintains inflation around 5% in 2025, some countries experience price increases doubling monthly.

Chronic political instability: Coups, internal conflicts, and impermanent governments scare off investors. Without legal security, the local currency loses credibility and turns into paper without backing.

International sanctions: When the global community restricts a country’s access to the financial system, the national currency becomes useless for global transactions. The impact is devastating and immediate.

Insufficient international reserves: A Central Bank without enough dollars or gold cannot defend its currency in times of crisis. Devaluation becomes unstoppable.

Capital flight: When even local citizens prefer to store dollars informally rather than trust the national currency, the message is clear: the economy is collapsing.

The Ranking: The 10 Most Devalued Currencies of 2025

1. Lebanese Pound (LBP) – The Weakest in the World

Exchange rate: 1 million LBP = R$ 61.00

The Lebanese Pound is the most extreme example of devaluation. Officially, there should be 1,507.5 pounds per dollar, but this exchange rate does not exist outside of paper. In the real market, more than 90,000 pounds are needed for a single dollar.

The 2020 crisis destroyed the banking system. Today, banks drastically limit withdrawals, and merchants demand dollars. Uber drivers in Beirut refuse the local currency. A bundle of banknotes that looks like Monopoly money is all that remains of economic confidence.

2. Iranian Rial (IRR) – Sanctioned Currency

Exchange rate: 1 Brazilian real = 7,751.94 rials

American economic sanctions turned the rial into a third-world currency. With R$ 100, you become a “millionaire” in rials, an absurd situation that shows the collapse of confidence.

Interestingly, young Iranians have migrated to cryptocurrencies. Bitcoin and Ethereum have become a more reliable store of value than the national currency. This behavioral shift reveals the level of desperation and the search for assets that escape destructive inflation.

3. Vietnamese Dong (VND) – Weak but Stable

Exchange rate: approximately 25,000 VND per dollar

Unlike the previous ones, Vietnam has a growing economy. The dong remains weak by monetary policy choice, not collapse. Tourists receive bundles of notes when withdrawing US$ 50, creating the illusion of wealth.

For Vietnamese, however, it means expensive imports and limited international purchasing power. It is a structural devaluation, not a crisis.

4. Laotian Kip (LAK) – Small Economy, Weak Currency

Exchange rate: about 21,000 LAK per dollar

Laos has a small economy, dependence on imports, and recurring inflation. At the border with Thailand, merchants prefer to accept baht. The currency cannot strengthen in a vulnerable economic context.

5. Indonesian Rupiah (IDR) – Largest Economy, Weak Currency

Exchange rate: approximately 15,500 IDR per dollar

Indonesia is Southeast Asia’s largest economy, but the rupiah has never strengthened. Since 1998, it has been among the weakest currencies globally. Historically, this weakness benefits Brazilian tourists: Bali offers luxurious experiences at minimal costs.

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

Exchange rate: about 12,800 UZS per dollar

Uzbekistan implemented significant economic reforms in recent years, but the sum reflects decades of isolation. The country tries to attract investments, but the currency remains weak and devalued.

7. Guinean Franc (GNF) – Resource Wealth, Currency Poverty

Exchange rate: approximately 8,600 GNF per dollar

Guinea has abundant gold and bauxite, but political instability and corruption prevent this mineral wealth from translating into monetary strength. It is a classic case of resource-rich but governance-poor country.

8. Paraguayan Guarani (PYG) – Neighbor with Weak Currency

Exchange rate: about 7.42 PYG per real

Paraguay has a relatively stable economy, but the guarani has historically been weak. For Brazilians, it means Ciudad del Este remains a shopping destination where purchasing power multiplies.

9. Malagasy Ariary (MGA) – Nation Among the Poorest

Exchange rate: approximately 4,500 MGA per dollar

Madagascar is one of the poorest nations in the world, and the ariary reflects this reality. Imports cost proportionally much more, drastically reducing the population’s international purchasing power.

10. Burundian Franc (BIF) – Extreme Devaluation

Exchange rate: about 550.06 BIF per real

Closing the ranking is a currency so weakened that large purchases literally require bags of money. Burundi’s chronic political instability directly reflects on the currency, making it practically useless as a store of value.

What Does This Mean for Investors?

Identifying the world’s cheapest currency offers practical lessons for investors:

Fragile economies = high risks: Devalued currencies may seem like opportunities, but they reflect deep crises. Investing in these markets requires very careful analysis.

Tourism as an advantage: Destinations with weak currencies offer luxurious experiences at minimal expenses. The same dollar or real goes much further.

Stability matters: Strong currencies do not happen by chance. They reflect good governance, institutional trust, and responsible economic policy. Understanding this dynamic helps identify where your capital is truly safe.

Diversification beyond borders: Assets that transcend local currencies and are not affected by local inflation offer real protection. This is a fundamental strategy to preserve purchasing power.

Monitoring how currencies devalue around the world teaches macroeconomics in a real way. It concretely shows how political decisions, institutional trust, and stability translate into purchasing power (or lack thereof) in people’s lives.