What is the Cheapest Currency in the World in 2025? Discover the 10 Worst Global Depreciations

When we open our wallet and see our money losing purchasing power every month, it’s already concerning. But there are places where this reality is much more severe. There are countries where the population wakes up and realizes that their currency is worth nothing on the international market. The Brazilian real faced challenges in 2024, closing as the worst-performing currency among the world’s main currencies with a decline of 21.52%. However, there are economies where this situation is exponentially worse.

What is the cheapest currency in the world? The answer goes beyond simple numbers. Behind each devalued currency is a story of misguided political decisions, deep economic crises, and lack of investor confidence. In 2025, with persistent inflation and geopolitical instability, this scenario worsened even further.

The Triggers of Currency Devaluation

Before looking at the ranking, it is essential to understand why some currencies collapse. It is not a coincidence but a set of factors working together to destroy an economy’s credibility.

Uncontrolled inflation: When prices rise exponentially, the currency loses its purchasing power. While Brazil is concerned with inflation around 5% per year, countries like Argentina and Venezuela face scenarios where prices can double monthly. This is hyperinflation, a phenomenon that devastates savings and wages simultaneously.

Chronic political instability: Coups, internal wars, and fragile governments scare off investors. When there is no legal security, external capital flees, and the local currency becomes worthless paper.

International economic isolation: Economic sanctions cut off access to the global financial system, rendering the local currency practically useless for cross-border transactions.

Insufficient foreign exchange reserves: A Central Bank without enough dollars cannot defend its own currency against speculators. It’s like a company without working capital to handle crises.

Mass capital exodus: When even local citizens prefer to store dollars informally rather than trust the national currency, the warning sign has already turned red. Although common in extreme crises, this practice demonstrates an absolute loss of confidence.

The 10 Currencies with the Greatest Devaluation in 2025

1. Lebanese Pound (LBP) — The Undisputed Champion

Quote: 1 million LBP = R$ 61.00 (September 2025)

When seeking the answer to which currency is the cheapest in the world, the Lebanese pound leads undeniably. Officially, the rate should be 1,507.5 pounds per dollar, but this rate has not existed in reality since the 2020 crisis. In the black market (where real transactions happen), it takes more than 90,000 pounds to buy a single dollar.

Beirut has become a laboratory of forced dollarization. Banks limit withdrawals, businesses refuse the national currency, and ride-share drivers demand payment in dollars. The situation is so extreme that citizens walk around with stacks of notes that look like Monopoly money.

2. Iranian Rial (IRR) — Victim of International Sanctions

Quote: 1 Brazilian real = 7,751.94 Iranian rials

American sanctions turned the rial into a symbol of economic isolation. With one hundred reais, any Brazilian would become a “millionaire” in rials. The central government tries to control the official exchange rate, but the informal market operates with multiple parallel rates.

A curious trend emerges among Iranians: mass adoption of cryptocurrencies. Bitcoin and Ethereum serve as a safer store of value than the state currency for many. This represents a vote of no confidence in the local currency and a search for assets that transcend national borders.

3. Vietnamese Dong (VND) — Structural Weakness

Quote: Approximately 25,000 VND per dollar

Vietnam has a different story. Despite an expanding economy, the dong remains structurally weak due to monetary policy choices. Withdrawing a million dong from an ATM results in a stack that impresses any tourist.

For the Brazilian traveler, the situation is advantageous: fifty dollars last for days. However, for Vietnamese, it means that expensive imports reduce purchasing power in foreign products. The local population directly feels the limits of this weak currency in international trade.

4. Laotian Kip (LAK) — Peripheral Economy

Quote: About 21,000 LAK per dollar

Laos faces a reduced economy, critical dependence on imports, and persistent inflation. The kip is so weak that border traders with Thailand prefer to accept Thai baht. This informal practice reveals how much confidence disappears when a currency cannot maintain its value.

5. Indonesian Rupiah (IDR) — Weight of History

Quote: Approximately 15,500 IDR per dollar

As Southeast Asia’s largest economy, it would be reasonable to expect the rupiah to be more robust. However, since the 1998 crisis, it remains among the weakest currencies globally. For Brazilian visitors, Bali becomes an ultra-premium destination: two hundred reais a day guarantees comfort comparable to local high classes.

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

Quote: About 12,800 UZS per dollar

Uzbekistan has implemented significant economic reforms in recent years. Despite this, the sum still reflects decades of an isolated economy. The country seeks to attract international capital, but the currency remains weak and discredited by global markets.

7. Guinean Franc (GNF) — Paradox of Natural Resources

Quote: Approximately 8,600 GNF per dollar

Guinea has abundant gold and bauxite, resources that should strengthen its economy. However, chronic political instability and corruption prevent this mineral wealth from converting into a strong currency. It’s a classic example of a resource-rich but poorly managed country.

8. Paraguayan Guarani (PYG) — Regional Continuity

Quote: About 7.42 PYG per real

Paraguay maintains a relatively stable economy by Latin American standards, but the guarani has historically weak exchange rates. For Brazilians, this perpetuates Ciudad del Este as an accessible commercial hub. The proximity and weak currency make the region a permanently attractive shopping destination.

9. Malagasy Ariary (MGA) — Poverty Reflected in Currency

Quote: About 4,500 MGA per dollar

Madagascar is among the nations with the lowest human development index. Its ariary reflects this brutal reality: imports are prohibitive, and the population has virtually zero international purchasing power. The currency cannot even facilitate basic transactions with the rest of the world.

10. Burundian Franc (BIF) — The Extreme of Fragility

Quote: About 550.06 BIF per real

Closing the ranking is the currency so devalued that, for bulk purchases, citizens literally carry bags full of banknotes. Burundi’s perpetual political instability manifests directly in the collapse of its national currency. It’s no exaggeration to say that the Burundian franc is practically useless for saving or international trading.

What to Learn from This Global Scenario

What is the cheapest currency in the world? The most important question, however, is: what does this information say about the global economy?

This ranking is not mere curiosity. It represents real economic scars: failed governments, fleeing investors, suffering populations. Each weak currency contains a story of mismanagement, institutional corruption, or crises that no one managed to control.

For those following financial markets, the lessons are clear. Fragile economies pose immense risks. Cheap currencies may seem like speculative opportunities, but the truth is that most of these countries are living through deep crises.

On the other hand, these destinations offer opportunities for low-cost tourism. With dollars, euros, or even reais, travelers can live like millionaires in many of these regions. It’s the flip side of a collapsed currency: foreign tourists benefit massively.

Understanding how currencies collapse helps to see, in practice, the tangible effects of inflation, corruption, and instability. These are not abstract macroeconomic concepts but realities that transform the daily lives of billions.

For Brazilian investors, monitoring these movements provides valuable perspective. It reinforces the importance of institutional trust, government stability, and sound economic management for any country aiming for a strong currency. These are the foundations that separate resilient economies from collapsing ones.