Find the least valuable money in the world: 10 currencies from turbulent economies

Exchange rate volatility has become a part of the current global economic background. The world’s least valuable currencies often reflect economies facing major challenges, whether it’s high inflation, political instability, or lack of economic diversification. Understanding how these currencies are in such situations helps us gain deeper insights into global economic issues.

Why do some countries have the least valuable currencies?

The world’s least valuable currencies don’t happen by chance. Several economic factors cause these currencies to weaken. The first is hyperinflation—when prices for goods and services rise rapidly, demand for foreign currencies increases, causing the local currency to depreciate.

The second is political instability—countries with internal conflicts or frequent political changes attract less foreign investment. Global investors tend to seek more stable environments.

The third is dependence on natural resource exports and lack of economic diversification—countries relying solely on oil, minerals, or agricultural products are vulnerable to global market fluctuations. When commodity prices fall, national income drops, leading to currency depreciation.

Southeast Asia: Least valuable currencies as development indicators

Vietnamese dong (VND): Growing economy with a weak currency

The Vietnamese dong is among the world’s least valuable currencies, with an exchange rate of approximately 26,040 VND per 1 USD. Interestingly, Vietnam is one of the fastest-growing economies in the region.

After the Vietnam War ended in 1975, Vietnam adopted the dong as its national currency. Initially, the dong faced high inflation and instability. However, since economic liberalization in the 2000s, the situation improved. The Vietnamese central bank manages the floating exchange rate to stabilize the currency, which has contributed to economic stability.

Although the dong is one of the weakest currencies, its low value benefits Vietnam by making exports more competitive. The country runs a trade surplus, exporting more than it imports.

• Abbreviation: VND
• Current exchange rate: 1 USD = 26,040 VND
• Currency policy: Managed floating system

Lao kip (LAK): A developing country with a weak currency

The Lao kip is also among the least valuable currencies, with an exchange rate of about 21,625.82 LAK per 1 USD. Laos is one of the slowest developing economies in Southeast Asia.

Laos gained independence from France in 1952 and has used the kip since. The economy relies heavily on agriculture, which accounts for most of its GDP. Widespread poverty and limited foreign investment keep the kip weak.

Post-COVID-19, Laos experienced high inflation and ongoing economic crises. The central bank manages the kip through a managed float to maintain stability.

• Abbreviation: LAK
• Current exchange rate: 1 USD = 21,625.82 LAK
• Currency policy: Managed floating system

Indonesian rupiah (IDR): Emerging market with a weak currency

The Indonesian rupiah (IDR) has an exchange rate of about 16,275 IDR per 1 USD, making it one of the least valuable currencies. Indonesia, with the fourth-largest population globally, is a major economy in Asia.

The rupiah’s weakness stems from Indonesia’s reliance on commodity exports like palm oil and minerals. When global prices fall, the rupiah faces pressure.

As a developing market, Indonesia is sensitive to global investor sentiment. Negative news about the global economy often leads investors to seek safer assets, causing the rupiah to weaken.

• Abbreviation: IDR
• Current exchange rate: 1 USD = 16,275 IDR
• Currency policy: Free float system

Middle East and Africa: The least valuable currencies as symbols of challenges

Lebanese pound (LBP): A volatile economy

The Lebanese pound (LBP) is currently the world’s least valuable currency, with an exchange rate of about 89,751.22 LBP per 1 USD, which is extremely high compared to others.

Lebanon faces one of the worst modern economic crises since 2019, with triple-digit inflation, widespread poverty, and banking sector collapse. In 2020, Lebanon defaulted on its debt.

The pound has lost over 90% of its value against the dollar in the parallel market. Officially, it is pegged to the USD, but in practice, it has depreciated significantly. Political instability and regional conflicts hinder economic recovery.

• Abbreviation: LBP
• Current exchange rate: 1 USD = 89,751.22 LBP
• Currency policy: Multiple exchange rates

Iranian rial (IRR): Sanctioned currency with low value

The Iranian rial (IRR) ranks second among the world’s least valuable currencies, with an exchange rate of about 42,112.50 IRR per 1 USD. It has been one of the weakest currencies for a long time.

The main cause is strict economic sanctions imposed by the US and allies, especially over nuclear programs and regional conflicts, isolating Iran from global markets and putting economic pressure on the rial.

Iran relies heavily on oil exports. When oil prices fall, the economy suffers. High inflation and government mismanagement further weaken the rial.

• Abbreviation: IRR
• Current exchange rate: 1 USD = 42,112.50 IRR
• Currency policy: Officially pegged to USD; managed float system

Guinean franc (GNF): Resource-rich but impoverished

The Guinean franc (GNF) has an exchange rate of about 8,667.50 GNF per 1 USD. Guinea is rich in natural resources, especially bauxite, but remains poor.

Political instability, corruption, and lack of infrastructure hinder economic development. The economy depends on agriculture and mining, making it vulnerable.

Foreign investment is limited due to concerns over political stability and security, keeping the GNF weak.

• Abbreviation: GNF
• Current exchange rate: 1 USD = 8,667.50 GNF
• Currency policy: Managed float system

Uzbek som (UZS): A gradually liberalizing market

The Uzbek som (UZS) has an exchange rate of about 12,798.70 UZS per 1 USD. Uzbekistan was part of the Soviet Union until independence in 1991.

Initially introduced in 1994, the economy has begun reforming since the mid-2010s. It relies heavily on natural gas exports and agriculture.

The government maintains strict controls, so market prices don’t always reflect true value. High inflation and limited economic diversification remain challenges.

• Abbreviation: UZS
• Current exchange rate: 1 USD = 12,798.70 UZS
• Currency policy: Free float system

Latin America and Africa: The least valuable currencies

Paraguayan guarani (PYG): An agricultural economy

The Paraguayan guarani (PYG) has an exchange rate of about 7,996.67 PYG per 1 USD. Paraguay is a small country in South America, heavily reliant on agriculture, especially soybeans and timber.

Past financial crises, inflation, and political instability have affected the currency. Chronic trade deficits increase demand for foreign currency.

Despite agricultural growth, dependence on a single sector makes the guarani vulnerable to global commodity price swings.

• Abbreviation: PYG
• Current exchange rate: 1 USD = 7,996.67 PYG
• Currency policy: Free float system

Malagasy ariary (MGA): A non-decimal system

The Malagasy ariary (MGA) has an exchange rate of about 4,467.50 MGA per 1 USD. Madagascar adopted this currency in 2005, replacing the franc. Notably, 1 ariary equals 5 iraimbilanja, making it non-decimal.

Madagascar’s economy depends on agriculture, tourism, and resource exports. Political instability and natural disasters like cyclones severely impact economic stability.

Limited financial infrastructure hampers efforts to control inflation, and widespread poverty reflects the currency’s weakness.

• Abbreviation: MGA
• Current exchange rate: 1 USD = 4,467.50 MGA
• Currency policy: Managed float system

Burundian franc (BIF): A very poor country

The Burundian franc (BIF) has an exchange rate of about 2,977.00 BIF per 1 USD. It has been in use since independence from Belgium in 1964.

Burundi is among the poorest countries globally, with an economy mainly based on subsistence agriculture. Chronic trade deficits, limited industrial activity, and reliance on foreign aid characterize its economy.

Political unrest, food insecurity, and high inflation pose ongoing risks. The central bank faces challenges in managing liquidity and inflation, making the BIF one of the world’s least valuable currencies.

• Abbreviation: BIF
• Current exchange rate: 1 USD = 2,977.00 BIF
• Currency policy: Inflation targeting and liquidity management

Summary table: Current exchange rates

The world’s least valuable currencies: An overview

The currencies with the lowest value reflect economic, political, and social challenges faced by countries worldwide. Exchange rates are influenced by multiple factors, including interest rates, inflation, public debt, political stability, and current account balances.

High interest rates often attract foreign investment, temporarily boosting currency value. Conversely, high inflation erodes currency worth. Persistent trade deficits and negative economic outlooks also weaken currencies.

Understanding how these currencies become the least valuable helps us see the bigger picture of global economic health. It underscores the importance of political stability, fiscal management, and economic diversification for maintaining currency value and long-term prosperity.