Global's Lowest Currency Rankings: Why These 10 Economies Struggle With Depreciation

When it comes to global currency markets, the U.S. dollar stands as a towering benchmark. While not technically the strongest currency (that distinction belongs to Kuwait’s dinar), the greenback commands an outsized share of international trade and serves as the measuring stick against which other currencies are evaluated. Yet across the world, there exists another group of currencies—the lowest currency valuations in global markets—trading at fractions of a cent. In some cases, you need tens of thousands of units of a weak currency just to equal one U.S. dollar. This article examines the 10 weakest currencies globally, analyzing why these nations’ monies have depreciated so severely and what economic forces drive such dramatic devaluation.

Understanding Currency Valuation and Exchange Mechanics

All global currencies trade in pairs. When you exchange U.S. dollars for Mexican pesos or vice versa, you’re participating in a market that constantly reprices one currency relative to another. That relative price is known as the exchange rate, and it fluctuates based on supply, demand, and broader macroeconomic forces.

Most currencies are classified as “floating,” meaning their values respond dynamically to economic conditions. Others are “pegged,” anchored to stable reference points like the U.S. dollar at predetermined rates. These exchange rate movements carry real consequences: when the dollar appreciates against India’s rupee, American tourists enjoy cheaper vacations, while Indian visitors find U.S. travel prohibitively expensive. The data presented here reflects 2023 exchange rates compiled from Open Exchange and represents exchange rates as of May 26, 2023, offering a snapshot of currency valuations from that period.

The World’s 10 Lowest Currency Valuations: A Comprehensive Ranking

Middle East and South Asia: Sanction-Driven Currency Collapse

1. Iranian Rial (IRR) — The Lowest Currency By Value

The Iranian rial holds the distinction of being the lowest currency in the world by unit value, with 1 rial equivalent to just 0.000024 dollars (or approximately 42,300 rials per dollar). This extreme depreciation stems from decades of economic punishment: U.S. sanctions reimposed in 2018 combined with recurring European Union sanctions have systematically squeezed Iran’s economy. Political instability and inflation rates exceeding 40% annually have compounded the currency’s weakness. The World Bank warns that “risks to Iran’s economic outlook remain significant,” suggesting further depreciation may persist.

2. Vietnamese Dong (VND) — Asian Weakness Amid Export Slowdown

Asia’s second-lowest valued currency, the Vietnamese dong trades at 0.000043 dollars per unit (23,485 dong equals one dollar). Despite Vietnam’s reputation as a dynamic emerging market, its currency has faced headwinds from a deflated real estate sector, foreign investment restrictions, and declining export momentum. Paradoxically, the World Bank simultaneously credits Vietnam with transforming “from one of the poorest in the world into a lower middle-income country,” highlighting the disconnect between national development progress and currency strength.

3. Laotian Kip (LAK) — Debt and Commodity Price Vulnerability

Ranking third among the world’s lowest currencies, the Laotian kip stands at 0.000057 dollars per unit (17,692 kip per dollar). Landlocked Laos has been battered by sluggish growth and unsustainable foreign debt obligations. When the kip depreciates, import prices spike—particularly for oil and global commodities—which further erodes the currency’s value in a vicious cycle. The Council on Foreign Relations critiques the government’s policy response, noting that “recent efforts to bring inflation, debt and the country’s plummeting currency under control have been poorly considered and counterproductive.”

Sub-Saharan Africa: Natural Resources Fail to Stabilize Currencies

4. Sierra Leonean Leone (SLL) — Inflation and Institutional Weakness

The Sierra Leonean leone ranks fourth globally among lowest-value currencies, trading at 0.000057 dollars per unit (17,665 leones per dollar). Hyperinflation exceeding 43% in April 2023 has devastated this West African nation’s monetary value. Compounding factors include lingering effects from the 2010s Ebola crisis, earlier civil war trauma, political uncertainty, and endemic corruption. The World Bank notes that “economic development has been constrained by concurrent global and domestic shocks.”

5. Guinean Franc (GNF) — Abundant Resources, Persistent Poverty

Despite sitting atop significant gold and diamond reserves, Guinea’s currency ranks eighth among the world’s lowest-valued monies, trading at just 0.000116 dollars per unit (8,650 francs per dollar). High inflation has systematically eroded the Guinean franc’s purchasing power. Political instability and military rule, combined with refugee influxes from neighboring Liberia and Sierra Leone, have destabilized the broader economy. The Economist Intelligence Unit warns that “political instability and a slowing global growth outlook will keep Guinea’s economic activity below potential in 2023.”

Middle East and South Asia: Deeper Crisis

6. Lebanese Pound (LBP) — Banking Collapse and Hyperinflation

The Lebanese pound ranks fifth globally among lowest-currency valuations, at 0.000067 dollars per unit (15,012 pounds per dollar). In March 2023, the pound sank to record lows. Lebanon’s economic collapse has been precipitous: unemployment reaches historic highs, the banking sector remains in crisis, political paralysis persists, and prices surged an estimated 171% in 2022 alone. The International Monetary Fund declared in March 2023 that “Lebanon is at a dangerous crossroads, and without rapid reforms will be mired in a never-ending crisis.”

7. Indonesian Rupiah (IDR) — Population Scale Cannot Save Currency

Despite Indonesia’s status as the world’s fourth-most populous nation, its rupiah ranks sixth among the lowest currencies globally, valued at 0.000067 dollars per unit (14,985 rupiah per dollar). The rupiah’s weakness demonstrates that demographic advantages cannot offset macroeconomic dysfunction. While the currency has shown marginal strength in 2023 relative to regional peers, depreciation pressures from previous years linger. The IMF cautioned in March 2023 that global economic contraction could renew pressure on the rupiah.

Central Asia and South America: Growth Challenges

8. Uzbekistani Som (UZS) — Reform Efforts Still Insufficient

The Uzbekistani som ranks seventh among the world’s lowest-value currencies, trading at 0.000088 dollars per unit (11,420 som per dollar). Since 2017, Uzbekistan has pursued economic reforms, yet structural challenges persist: slowing growth, elevated inflation, high joblessness, corruption, and endemic poverty constrain the currency. Fitch Ratings noted in March 2023 that while “the Uzbekistani economy has demonstrated resilience to spillovers from the war in Ukraine,” significant uncertainty about economic trajectory remains.

9. Paraguayan Guarani (PYG) — Hydropower Paradox

South America’s lowest-currency representative, the Paraguayan guarani trades at 0.000138 dollars per unit (7,241 guaranies per dollar). This landlocked nation produces overwhelming majorities of its electricity through a single dam, yet hydroelectric abundance has failed to generate broader economic strength. High inflation approaching 10% in 2022, coupled with drug smuggling and money laundering activities, has corroded both the currency and the economy. The IMF acknowledged in April 2023 that “the medium-term outlook remains favorable, but risks from worsening global conditions and extreme weather events” threaten stability.

10. Ugandan Shilling (UGX) — Resource Wealth Cannot Overcome Instability

Rounding out the global bottom ten, the Ugandan shilling ranks tenth among the lowest currencies worldwide, valued at 0.000267 dollars per unit (3,741 shillings per dollar). Despite richness in oil, gold, and coffee resources, Uganda suffers from unstable growth trajectories, substantial debt burdens, and persistent political turmoil. A surge in refugee arrivals from Sudan has intensified economic strain. The CIA characterizes Uganda as facing “numerous challenges affecting future stability: explosive population growth, infrastructure deficits, corruption, weak institutions, and human rights concerns.”

The Systemic Patterns Behind Currency Weakness

These ten nations illustrate recurring themes: economic sanctions, inflation spirals, political instability, institutional weakness, and resource curse dynamics all contribute to lowest-currency status. While each nation’s circumstances differ, the common thread is that fundamentally sound monetary policy alone cannot support currency strength without broader economic reform and institutional stability. Currency weakness, in turn, makes imports more expensive and complicates capital flows—creating feedback loops that deepen economic challenges. Understanding these dynamics illuminates why certain countries struggle with the lowest currency valuations while others maintain strong reserves.