I saw information about the cheapest currencies in the world, and the numbers are more surprising than I thought. The Lebanese pound is at 89,751 per dollar, the Iranian rial at 42,112, the Vietnamese dong at 26,040 – how much have they depreciated?

Most of these currencies with the lowest value share the same problems: high inflation, political instability, reliance solely on commodity exports. Laos, Indonesia, Guinea – all depend on agriculture or mining. It makes sense why their currencies are so weak.

What’s interesting is that Vietnam has a growing economy, but the dong continues to depreciate because the central bank tightly controls the exchange rate, which helps keep exports cheap. This contrasts with an economy that is truly growing.

For Burundi and Madagascar, the low currency value is due to underdeveloped economies, widespread poverty, lack of foreign investment, and political issues – all combined to keep these currencies among the cheapest in the world.

If you’re interested in depreciating currencies, look at the fundamentals: inflation, central bank policies, trade – they tell the whole story about why currencies weaken or strengthen.