The cheapest currencies compared to Thailand: 10 currencies that "dropped out" the most in 2025

The story of currencies that have already fallen, why is this happening

Some currencies have dropped out of the game. They declined in strength due to various factors, from crazy inflation, political unrest, to international sanctions. When the economy is unhealthy, the currency is the first thing to reflect that.

Let’s look at the top 10 currencies with the most trading volume against the dollar in the world.

Quick comparison table: The most devalued currencies

Deep dive: 10 currencies cheapest against Thailand

1. Lebanese Pound (LBP) – Economy in free fall

Current situation

The Lebanese Pound is an economy with unpayable debt. Since 2019, Lebanon has been in crisis: triple-digit inflation, bank closures, government defaults, and the currency has lost 90% in the parallel market.

Reasons for LBP collapse

• Political instability + public debt crisis
• Banking system collapse
• Central bank exhausted foreign reserves
• Multi-tier exchange rate policies causing confusion

Currency info

• Abbreviation: LBP
• Exchange rate: 1 USD = 89,751.22 LBP
• System: Volatile policy with management (causing hesitation)

2. Iranian Rial (IRR) – One of the most crushed economies

Why IRR is so cheap

Iran has continuously lost IRR due to: sanctions + tensions + oil dependence + rampant inflation.

One crisis includes:

• First: Iran-Iraq war (causing economic stagnation)
• Second: Nuclear program + US sanctions
• Third: Poor governance + declining trust

Impact

Hyperinflation, central bank under heavy management. IRR plummets quickly as people flee to dollars.

Currency info

• Abbreviation: IRR
• Exchange rate: 1 USD = 42,112.50 IRR
• System: Official peg + limited float

3. Vietnamese Dong (VND) – Growing economy but weak currency

Interesting story

Vietnam is a special case: a rapidly growing economy, but the currency remains weak by design.

• First period (1954-1975): Vietnam split into two, dong split accordingly
• Post-war: reunification, economy in bad shape, rampant inflation
• 2000s: reforms, better fundamentals, dong begins to weaken

Currently: deliberately undervalued exchange rate

The central bank devalues the dong intentionally to help exporters (making Vietnamese goods cheaper). Vietnam has a trade surplus; low dong demand → weak dong.

Currency info

• Abbreviation: VND
• Exchange rate: 1 USD = 26,040 VND
• System: Managed float (referencing a basket of currencies)

4. Laotian Kip (LAK) – Underdeveloped economy, fragile

Why LAK is low

Laos is one of the least developed countries in Southeast Asia:

• Dependent on agriculture
• Little foreign investment
• Underdeveloped industrial sector
• Post-COVID inflation still high

Challenges

Laos remains risky: economy stuck, trade imbalance, high foreign interest rates, limited reserves.

Currency info

• Abbreviation: LAK
• Exchange rate: 1 USD = 21,625.82 LAK
• System: Managed float (pegged to dollar + baht)

5. Indonesian Rupiah (IDR) – Large economy but “soft” currency

Inconsistencies

Indonesia has the fourth-largest population in the world. The largest economy in ASEAN, but IDR still has a low exchange rate.

Reasons

• Reliance on commodity exports (oil, minerals, crops)
• Fluctuating commodity prices → volatile dollar demand
• Inflation remains high
• Foreign investors seek safe assets → capital outflows

Past: 1997-1998 crisis

Southeast Asia downturn, IDR lost 80% in some days, central bank ran out of reserves, IMF had to intervene.

Currency info

• Abbreviation: IDR
• Exchange rate: 1 USD = 16,275 IDR
• System: Free float

6. Uzbek Sum (UZS) – Former Soviet Union, still controlled

Brief history

Uzbekistan: part of the Soviet Union → independence in 1991 → uses UZS(

Why on the list

• Government tightly controls the economy
• Exchange restrictions )people cannot freely sell UZS(
• Central bank manages heavily
• High inflation
• Insufficient foreign investment

Latest changes

Since mid-2010s, some reforms, but UZS remains low and stable.

Currency info

• Abbreviation: UZS
• Exchange rate: 1 USD = 12,798.70 UZS
• System: Free float

) 7. Guinean Franc ###GNF( – Natural resources, but limited wealth

Guinea situation

Guinea sits on mineral resources, but its economy is still small:

• Reliant on mining
• Weak infrastructure
• Political instability
• Corruption

Results

The GNF cannot capitalize on natural wealth. Living standards are low, foreign investment hesitant, GNF remains weak.

Currency info

• Abbreviation: GNF
• Exchange rate: 1 USD = 8,667.50 GNF
• System: Managed float

) 8. Paraguayan Guarani ###PYG( – Old currency, old problems

Paraguay story

• The Guarani has a long history )since 1944(
• But the country has faced crises: Chaco War )1932-1935(, debt crisis )1980s(
• Each time, inflation causes the currency to fall

Today

Paraguay relies on:

• Agricultural exports )soybeans mainly(
• Slow economic turnover
• Social challenges

Chronic trade deficits, high dollar demand → PYG depreciation.

Currency info

• Abbreviation: PYG
• Exchange rate: 1 USD = 7,996.67 PYG
• System: Free float

) 9. Malagasy Ariary ###MGA( – The “strange” currency

MGA uniqueness

Madagascar adopted MGA in 2005, replacing the old franc.

Special feature: 1 MGA = 5 Iraimbilanja )not a decimal system!(

Why MGA is cheap

• Economy relies on agriculture + tourism
• Floods + political instability = risk
• Limited financial instruments
• Central bank lacks tools to fight inflation

Currency info

• Abbreviation: MGA
• Exchange rate: 1 USD = 4,467.50 MGA
• System: Managed float

) 10. Burundian Franc ###BIF( – The poorest country on paper

Burundi in hardship

Burundi is one of the poorest countries:

• Subsistence economy
• Food insecurity
• Trade deficit
• High public debt

Why BIF is weak

• Almost no formal industry
• Foreign investment scared away
• Central bank underfunded
• Instability + inflation = crisis

Currency info

• Abbreviation: BIF
• Exchange rate: 1 USD = 2,977.00 BIF
• System: Inflation control + liquidity management

The core: What makes a currency depreciate

Five factors

) 1. Hyperinflation

• Countries with high inflation → people flee to foreign assets → demand drops → currency falls

2. Political instability

• Risk → investors withdraw → capital outflows → currency weakens

3. Lack of economic diversification

• Reliance on 1-2 commodities → prices fall → dollar demand fluctuates → economy surges or collapses

4. Trade deficit

• Imports > exports → high dollar demand → domestic currency devalues

5. Weak central bank policies

• No foreign reserves → inability to defend currency → collapse to zero

Summary: The cheapest currency = an economy in equilibrium?

Exchange rates are more complex than just “numbers.” They reflect:

• High interest rates ###attracting foreign capital(
• Low inflation )leading to a strong currency(
• Current account surplus )high demand(
• Political stability )trustworthiness(

These 10 currencies remain cheap because the above factors are still issues. But there’s an opportunity: if reforms succeed, the currency will strengthen. Just wait.