Currency Collapse: The 10 Cheapest Currencies in the World in 2025

In the global financial landscape, currency strength is often seen as a reflection of a nation’s economic health, political stability, and monetary discipline. While strong currencies like the US dollar, euro, and Swiss franc dominate international trade and investment, several countries continue to grapple with severe currency devaluation. Based on current exchange rates and macroeconomic indicators, here are the ten lowest-valued currencies in the world as of August 2025.

 

Key Highlights

The Iranian Rial remains the world’s weakest currency, with over 42,000 IRR needed to buy one US dollar

 

Most currencies on the list suffer from hyperinflation, political instability, or chronic trade deficits

 

Currency weakness impacts import costs, foreign investment, and citizen purchasing power

 

Some countries intentionally devalue their currencies to boost exports or manage debt

 

Top 10 Cheapest Currencies in 2025

Iranian Rial (IRR)

 

1 USD ≈ 42,112 IRR (official rate), over 514,000 IRR on the black market

 

Devaluation driven by decades of sanctions, oil export restrictions, and inflation

 

Iran has proposed replacing the Rial with the Toman to simplify transactions2

 

Vietnamese Dong (VND)

 

1 USD ≈ 24,469 VND

 

Despite strong manufacturing exports, the Dong remains weak due to controlled exchange rate policies and limited convertibility

 

Laotian Kip (LAK)

 

1 USD ≈ 20,000 LAK

 

Laos faces fiscal deficits and limited foreign reserves, contributing to currency weakness

 

Sierra Leonean Leone (SLL)

 

1 USD ≈ 21,000 SLL

 

The Leone has suffered from years of civil unrest, corruption, and economic mismanagement

 

Indonesian Rupiah (IDR)

 

1 USD ≈ 15,500 IDR

 

Indonesia’s currency remains undervalued due to high external debt and reliance on commodity exports

 

Uzbekistani Som (UZS)

 

1 USD ≈ 12,000 UZS

 

The Som has improved post-pandemic, but inflation and limited capital mobility keep it among the weakest

 

Guinean Franc (GNF)

 

1 USD ≈ 8,800 GNF

 

Guinea’s currency is weighed down by political instability and underdeveloped financial infrastructure

 

Paraguayan Guarani (PYG)

 

1 USD ≈ 7,300 PYG

 

Paraguay’s economy has faced inflationary pressures and weak export diversification

 

Cambodian Riel (KHR)

 

1 USD ≈ 4,100 KHR

 

Cambodia’s high dollarization means the Riel is rarely used for major transactions, keeping its value low

 

Ugandan Shilling (UGX)

 

1 USD ≈ 3,800 UGX

 

Uganda’s currency has seen modest appreciation, but remains weak due to trade imbalances and inflation volatility

 

Why Currency Values Matter

A weak currency makes imports more expensive, raising the cost of living

 

It can deter foreign investment due to exchange rate risk

 

On the flip side, it may boost exports by making goods cheaper for foreign buyers

 

Citizens often turn to dollarization or crypto alternatives to preserve value

 

Conclusion

Currency weakness is not always a reflection of national failure—it can be a strategic choice or a temporary phase in economic restructuring. However, persistent devaluation often signals deeper issues such as inflation, poor governance, or external shocks. As global markets evolve, these currencies may either stabilize through reform or continue to struggle under macroeconomic pressure.

 

Sources: Forbes