Understanding the World's Least Valuable Currencies: A Guide to the Bottom 10 in 2023

Why Currency Values Matter for Global Trade and Investors

The U.S. dollar reigns as the world’s most traded currency and serves as the international benchmark for comparing monetary value. While it may not hold the top spot as the world’s strongest currency—that honor belongs to Kuwait’s dinar—it sits firmly among the elite of the 180-plus fiat currencies recognized globally. Yet on the opposite spectrum lie currencies that trade at mere fractions of a dollar, where obtaining just one unit of foreign money might require spending $1 or more.

Understanding these least valuable currencies reveals much about global economics, inflation patterns, and investment risks. This guide examines the 10 currencies with the lowest value relative to the U.S. dollar and explores the economic and political factors behind their weakness.

The Mechanics Behind Currency Valuation

Currencies derive their value through a system called the exchange rate—the price at which one currency trades for another. Picture exchanging U.S. dollars for Mexican pesos; that conversion establishes a real-time price between the two.

Most global currencies operate as “floating” currencies, meaning their value fluctuates based on supply and demand. A smaller subset are “pegged” currencies, locked to a fixed exchange rate with another currency like the dollar. These exchange rates have real consequences: when the dollar strengthens against India’s rupee, American tourists find vacations to Mumbai or the Taj Mahal more affordable, while Indians face steeper costs visiting the U.S.

For traders and investors, volatile exchange rates create profit opportunities through foreign currency speculation.

The 10 Least Valuable Currencies: A Regional and Economic Breakdown

Based on exchange rates as of May 2023, here are the world’s 10 least valuable currencies, ranked by their purchasing power relative to the U.S. dollar.

1. Iranian Rial (IRR) – 42,300 per Dollar

Anchoring the list is Iran’s rial, requiring 42,300 units to equal a single U.S. dollar. U.S. and European Union economic sanctions have strangled Iran’s economy, while political instability compounds the problem. An annual inflation rate exceeding 40% has devastated purchasing power. The World Bank warns that “risks to Iran’s economic outlook remain significant.”

2. Vietnamese Dong (VND) – 23,485 per Dollar

Vietnam’s dong ranks as the second-weakest of these least valuable currencies, with 23,485 dong needed to purchase one dollar. A troubled real estate sector, foreign investment restrictions, and slowing export momentum have undermined the currency. Despite these headwinds, the World Bank credits Vietnam with transforming “from one of the poorest nations in the world into a lower middle-income country,” noting its status as an increasingly dynamic East Asian economy.

3. Laotian Kip (LAK) – 17,692 per Dollar

The kip of neighboring Laos requires 17,692 units per dollar. Sluggish growth and crippling foreign debt have weakened the currency. Rising oil and commodity prices have accelerated inflation, which in turn pressures the kip downward. The Council on Foreign Relations critiques the government’s response: “Recent efforts to bring inflation, debt and the country’s plummeting currency under control have been poorly considered and counterproductive.”

4. Sierra Leonean Leone (SLL) – 17,665 per Dollar

West Africa’s Sierra Leone sees its leone valued at approximately 17,665 per dollar. Inflation exceeding 43% in April 2023, coupled with weak economic fundamentals and heavy debt burdens, have crushed the currency. Additional pressures include lingering consequences from a 2010s Ebola epidemic, previous civil conflict, political uncertainty, and endemic corruption. The World Bank summarizes: “Sierra Leone’s economic development has been constrained by concurrent global and domestic shocks.”

5. Lebanese Pound (LBP) – 15,012 per Dollar

Lebanon’s pound occupies the fifth-weakest position, at 15,012 per dollar—marking a record low against the greenback in March 2023. A collapsed economy, extraordinary unemployment, banking system deterioration, political turmoil, and runaway inflation (prices climbed an estimated 171% in 2022) have devastated the currency. The International Monetary Fund warned in March 2023 that “Lebanon is at a dangerous crossroads, and without rapid reforms will be mired in a never-ending crisis.”

6. Indonesian Rupiah (IDR) – 14,985 per Dollar

Indonesia’s rupiah represents 14,985 units per dollar. Despite Indonesia being the world’s fourth-most populous nation, this numerical advantage hasn’t protected the rupiah from depreciation in prior years. While the rupiah showed modest resilience compared to other Asian currencies in 2023, the International Monetary Fund cautioned in March 2023 that global economic contraction could reignite downward pressure on the rupiah.

7. Uzbekistani Som (UZS) – 11,420 per Dollar

Central Asia’s Uzbekistan, a former Soviet republic, introduced economic reforms beginning in 2017, yet its som remains among the world’s least valuable currencies. At 11,420 per dollar, the som suffers from decelerating growth, steep inflation, high joblessness, widespread corruption, and systemic poverty. Fitch Ratings noted in March 2023 that while “the Uzbekistani economy has demonstrated resilience to spillovers from the war in Ukraine and sanctions against Russia, significant uncertainty exists regarding the evolution of these risks.”

8. Guinean Franc (GNF) – 8,650 per Dollar

Guinea’s franc trades at 8,650 per dollar. Despite abundant natural resources including gold and diamonds, this sub-Saharan African nation struggles with severe inflation depressing its currency. Military-rule tensions and refugee flows from neighboring Liberia and Sierra Leone have weakened Guinea’s economic standing. The Economist Intelligence Unit predicts that “political instability and a slowing global growth outlook will keep Guinea’s economic activity below potential in 2023.”

9. Paraguayan Guarani (PYG) – 7,241 per Dollar

Paraguay’s guarani ranks as the ninth-weakest, valued at 7,241 per dollar. Although a single hydroelectric dam supplies most of Paraguay’s electricity, this energy advantage hasn’t translated to broader economic power. Double-digit inflation approaching 10% in 2022, compounded by drug trafficking and money laundering, have eroded both the currency and the broader economy. The International Monetary Fund noted in April 2023 that Paraguay’s “medium-term outlook remains favorable, but risks exist from deteriorating global conditions and extreme weather.”

10. Ugandan Shilling (UGX) – 3,741 per Dollar

Uganda’s shilling completes the list at 3,741 per dollar. Despite natural wealth in oil, gold, and coffee, Uganda has been hampered by economic volatility, substantial debt, and political instability. A surge of refugees from Sudan has added strain. The CIA observes that “Uganda faces numerous challenges affecting future stability, including explosive population growth, power and infrastructure constraints, corruption, underdeveloped democratic institutions and human rights deficits.”

What These Least Valuable Currencies Reveal About Global Economics

The ranking of least valuable currencies tells a story beyond simple numbers. Geographic patterns emerge: clusters of weak currencies appear across West Africa, Southeast Asia, and the Middle East, reflecting shared challenges in governance, debt management, and inflation control.

Common threads connecting these economies include political instability, over-reliance on single industries or exports, historical conflicts or health crises, and cycles of high inflation. Understanding why these least valuable currencies occupy the bottom rung helps investors, travelers, and policymakers grasp broader global economic dynamics and identify emerging risks or opportunities across different regions.