When it comes to global finance, the weakest currencies in the world often tell compelling stories of economic hardship, political instability, and shifting market dynamics. These currencies, measured against powerhouses like the U.S. Dollar (USD), reveal the struggles of nations battling inflation, debt, and unrest.
This blog dives into the top 10 weakest currencies in the world, exploring their causes, impacts, and what their depreciation means for residents and the global economy. Whether you’re researching devalued currencies or curious about global exchange rates, this guide has you covered.
Table of contents
- What Defines the Weakest Currencies in the World?
- List of Top 10 Weakest Currencies in the World in 2025
- Overview of the Weakest Currencies in the World
- Other Weak Currencies in the List of Weakest Currencies
- The Weakest Currencies in History
- How Weak Currencies Affect People and Economies?
- Factors Contributing to Currency Weakness
- FAQs on Weakest Currencies in the World
What Defines the Weakest Currencies in the World?
A currency becomes one of the weakest currencies in the world when its value drops compared to the highest currencies in the world like the U.S. dollar or the Euro.
But why does this happen? Factors like inflation, political instability, and poor economic conditions play a big role.
For example, if a country prints too much money, its currency value falls. You think of it like this: if everyone has too many candies, they’re not special anymore!
Also Read: Factors Affecting Exchange Rate: Check Details Here
List of Top 10 Weakest Currencies in the World in 2025
Currency devaluation is a significant economic issue that affects trade, inflation, and foreign investments. The following table provides an overview of the weakest currencies in the world in 2025, highlighting the key factors contributing to their depreciation.
| Rank | Currency | Exchange Rate | Key Reason for Weakness |
| 1 | Lebanese Pound (Lebanon) | USD 1 ≈ LBP 89,500 | Financial crisis, hyperinflation |
| 2 | Iranian Rial (Iran) | USD 1 ≈ IRR 42,300 | Economic sanctions, inflation |
| 3 | Vietnamese Dong (Vietnam) | USD 1 ≈ VND 25,460 | Controlled devaluation |
| 4 | Laotian Kip (Laos) | USD 1 ≈ LAK 21,820 | Inflation, slow GDP growth |
| 5 | Sierra Leonean Leone (Sierra Leone) | USD 1 ≈ SLL 23,500 | Economic instability, corruption |
| 6 | Indonesian Rupiah (Indonesia) | USD 1 ≈ IDR 16,220 | Inflationary pressures |
| 7 | Syrian Pound (Syria) | USD 1 ≈ SYP 13,000 | civil war, ruined infrastructure, Economic instability, corruption |
| 7 | Uzbekistani Som (Uzbekistan) | USD 1 ≈ UZS 12,818 | Economic reforms, inflation |
| 8 | Guinean Franc (Guinea) | USD 1 ≈ GNF 8,614 | Inflation, poverty |
| 9 | Paraguayan Guarani (Paraguay) | USD 1 ≈ PYG 7,528 | High unemployment, counterfeiting |
The above list shows the latest currency exchange rates in comparison to USD. You can safely transfer money globally with the Fly.Finance.
However, here are the best ways to exchange currency. And rates are liable to change.
Overview of the Weakest Currencies in the World
Now that we have outlined the weakest currencies in the world in 2025, let’s take a closer look at each currency’s economic situation, the reasons behind its devaluation, and the broader economic challenges faced by the respective countries.
1. Lebanese Pound (LBP)
- Currency of: Lebanon
- Exchange Rate: USD 1 ≈ LBP 89,500 (parallel market, January 2025)
Why It’s Weak
The Lebanese Pound is the weakest of the weakest currencies in the world. Since 2019, Lebanon’s banks failed, leaders argued, and a 2020 explosion wrecked things. Prices shot up crazy fast—171% in 2022! By 2024, it lost 500% of its value, making life super tough.
With low purchasing power and depleted reserves, it’s a prime example of currency depreciation at its worst, making daily life a struggle for Lebanese citizens.
2. Iranian Rial (IRR)
- Currency of: Iran
- Exchange Rate: USD 1 ≈ IRR 42,300 (March 2025)
Why It’s Weak
The Iranian Rial, a long-standing contender among the weakest currencies in the world, suffers from decades of sanctions and geopolitical strife. U.S. restrictions post-1979 and the 2015 nuclear deal’s collapse have slashed oil exports, spiking inflation above 40% yearly.
A slight 0.21% drop in 2024 shows minor stabilization, but the rial remains a devalued currency, burdened by isolation and economic sanctions, leaving Iranians grappling with soaring costs.
3. Vietnamese Dong (VND)
- Currency of: Vietnam
- Exchange Rate: USD 1 ≈ VND 25,460 (March 2025)
Why It’s Weak
Despite Vietnam’s economic rise, the Vietnamese Dong ranks among the weakest currencies in the world due to strategic devaluation for export gains. A 4.46% drop in 2024, driven by inflation pressures and a real estate slump, keeps it low.
While this boosts trade, it weakens purchasing power, making the VND a notable entry in discussions of global currency rankings and economic vulnerabilities.
4. Laotian Kip (LAK)
- Currency of: Laos
- Exchange Rate: USD 1 ≈ LAK 21,820 (March 2025)
Why It’s Weak
The Laotian Kip (LAK) has depreciated significantly due to inflation, slow GDP growth, and rising external debt. A 6.44% drop in 2024 reflects reliance on agriculture and limited growth.
Despite efforts to stabilize the economy, the LAK remains among the world’s weakest currencies in 2025.
5. Sierra Leonean Leone (SLL)
- Currency of: Sierra Leone
- Exchange Rate: USD 1 ≈ SLL 23,500 (March 2025)
Why It’s Weak
Sierra Leonean Leone earns its spot among the weakest currencies in the world due to persistent poverty and high inflation (43% in 2023). Dependent on commodities like diamonds, it’s vulnerable to price swings, worsened by past crises like Ebola.
This currency depreciation highlights Sierra Leone’s struggle with debt and corruption, cementing its place in global exchange rate lows.
6. Indonesian Rupiah (IDR)
- Currency of: Indonesia
- Exchange Rate: USD 1 ≈ IDR 16,220 (March 2025)
Why It’s Weak
The Indonesian Rupiah, despite Indonesia’s economic size, ranks among the weakest currencies in the world after a 4.86% decline in 2024. Trade deficits from oil imports and inflation fears weaken it, though it’s more stable than others.
This balance makes it a unique case in currency value comparisons, blending growth with vulnerability.
7. Syrian Pound (SYP)
- Currency of: Syria
- Exchange Rate: USD 1 ≈ SYP 13,000 (March 2025)
Why It’s Weak
The Syrian Pound secured its place among the weakest currencies in the world due to a 14-year civil war that has shattered the nation’s economy.
Even with slight stabilization in late 2024 after regime change, sanctions, ruined infrastructure, and minimal foreign investment keep the SYP among the lowest currency values.
This currency depreciation mirrors Syria’s ongoing recovery challenges, making it a stark example of how conflict impacts global exchange rates.
8. Uzbekistani Som (UZS)
- Currency of: Uzbekistan
- Exchange Rate: USD 1 ≈ UZS 12,818 (March 2025)
Why It’s Weak
The Uzbekistani Som ranks eighth on our list of the weakest currencies in the world, burdened by high inflation, unemployment, and corruption.
Though reforms since the 2010s have spurred growth, reliance on oil and gas exports limits diversification, keeping its purchasing power low.
The Som’s place in currency value rankings reflects Uzbekistan’s slow climb from economic stagnation, a journey still in progress.
9. Guinean Franc (GNF)
- Currency of: Guinea
- Exchange Rate: USD 1 ≈ GNF 8,614 (March 2025)
Why It’s Weak
The Guinean Franc is a fixture among the weakest currencies in the world, driven by political instability and poor infrastructure despite rich mineral deposits like bauxite.
Economic turmoil and scant foreign reserves fuel its decline, placing it high in devalued currency lists.
10. Paraguayan Guarani (PYG)
- Currency of: Paraguay
- Exchange Rate: USD 1 ≈ PYG 7,528 (March 2025)
Why It’s Weak
Rounding out the list of the weakest currencies in the world, the Paraguayan Guarani suffers from inflation spikes, high unemployment, counterfeiting issues, economic challenges, and weak global trade relations, making it a lesser-known but significant example of currency depreciation.
Also Read: How to Easily Send Money Abroad from India?
Other Weak Currencies in the List of Weakest Currencies
Beyond the top 10 weakest currencies in the world, several other currencies deserve a nod for their notable struggles among the weakest currencies in the world.
- Venezuelan Bolívar (VES): Once a leader in devalued currencies, the Bolívar dropped over 52% in 2024, per Steve Hanke’s X posts. Hyperinflation under socialist policies has gutted its value, though redenomination tweaks its ranking.
- Zimbabwean Dollar (ZWL): The gold-backed ZimDollar fell 954.2% in 2024, per Shafaq News, echoing its 2008 hyperinflation nightmare. It remains a standout in lowest currency value talks, a cautionary tale of monetary collapse.
The Weakest Currencies in History
Understanding the weakest currencies in the world requires looking at historical cases where extreme economic conditions led to catastrophic currency depreciation. These instances of hyperinflation and economic instability serve as cautionary tales for modern economies.
- Hungarian Pengő (1946): The worst case of hyperinflation ever recorded, with prices doubling every 15 hours. Inflation reached an astronomical 41.9 quadrillion percent per month, making 1 USD equal to 460 trillion Pengő. The currency became practically worthless, forcing Hungary to introduce a new monetary system.
- Zimbabwean Dollar (2008): A victim of reckless money printing and economic mismanagement, the Zimbabwean Dollar saw inflation skyrocket to unimaginable levels. At its peak, 1 USD was worth 2.6 trillion ZWD, leading the government to abandon the currency entirely. Zimbabwe eventually adopted foreign currencies to stabilize its economy.
- German Deutsche Mark (1923): One of the most infamous cases of hyperinflation, post-World War I Germany saw its currency collapse under the weight of war reparations and economic turmoil. The exchange rate soared to 4.2 trillion Deutsche Marks per 1 USD, with prices changing multiple times a day. This economic disaster led to significant political and social upheaval.
How Weak Currencies Affect People and Economies?
A weak currency—one that has depreciated significantly relative to others—can have profound effects on both individuals and the broader economy. Understanding these impacts is crucial for policymakers, businesses, and citizens alike.
Impact on Individuals:
- Higher Living Costs: Imported goods become expensive, leading to inflation and reducing purchasing power. Essentials like food, fuel, and electronics cost more.
- Costlier Travel: A weaker currency makes foreign travel expensive as exchange rates become unfavourable. However, it can attract foreign tourists due to lower costs in the country.
- Erosion of Savings: Inflation reduces the real value of savings, making it harder for individuals to maintain their financial security.
Impact on Economies
- Boost to Exports: A weak currency makes exports cheaper and more competitive in global markets, potentially stimulating economic growth.
- Imported Inflation: Higher costs for imported raw materials and goods can lead to inflation, affecting businesses and consumers.
- Foreign Investment Uncertainty: While some investors may find lower-cost opportunities appealing, concerns over economic stability can drive others away.
- Debt Burden: Countries with foreign-denominated debt face higher repayment costs, straining national finances.
Case Study: Argentina
Argentina’s currency fluctuations have led to inflation, import surges, and pressure on foreign reserves. While some policies have attempted to stabilize the economy, a weak currency continues to challenge financial stability.
Factors Contributing to Currency Weakness
A variety of economic, political, and financial factors contribute to currency depreciation, pushing it toward becoming one of the weakest currencies in the world. Understanding these factors helps explain why certain currencies remain weak over time.
- High Inflation: Countries with uncontrolled inflation experience a rapid decrease in their currency’s purchasing power.
- Political Instability: Frequent government changes, corruption, and poor governance reduce investor confidence.
- Economic Mismanagement: Poor fiscal policies and excessive public debt lead to currency depreciation.
- Trade Imbalances: Nations with high trade deficits struggle to maintain strong currency values.
- Sanctions and Restrictions: Economic sanctions limit trade and reduce currency strength.
The weakest currencies in the world in 2025 are primarily affected by economic instability, inflation, and political issues. While some nations attempt to implement reforms to strengthen their currencies, others continue to struggle with financial turmoil.
Addressing these underlying problems is crucial for stabilizing their economies and improving currency valuations.
FAQs on Weakest Currencies in the World
The weakest currencies in the world are those with the lowest exchange rates compared to stronger currencies like the U.S. Dollar (USD) or Euro (EUR). These include the Lebanese Pound, Iranian Rial, and Vietnamese Dong, among others.
Currencies become weak due to factors like hyperinflation, economic mismanagement, political instability, trade deficits, and excessive money printing, leading to depreciation against stronger currencies.
As of 2025, the Lebanese Pound (LBP) is the weakest currency in the world, with an exchange rate of USD 1 ≈ LBP 89,500, primarily due to financial collapse and hyperinflation.
Weak currencies increase inflation, reduce purchasing power, and make foreign debt more expensive. However, they can also boost exports by making goods cheaper in international markets.
Yes, weak currencies can recover through economic reforms, foreign investments, improved governance, and inflation control. Countries like Zimbabwe and Argentina have attempted stabilization efforts.
People in countries with weak currencies face rising living costs, expensive imports, and declining savings value, making everyday essentials harder to afford.
Not necessarily. Some countries, like Vietnam, intentionally keep their currency undervalued to boost exports and economic growth, despite being on the list of the weakest currencies in the world.
A weak currency gradually loses value due to inflation or economic instability, while a devalued currency is deliberately reduced in value by the government to boost trade competitiveness.
Sometimes. While weak currencies make investments cheaper, they also pose risks due to economic instability and fluctuating exchange rates. Investors prefer stability over volatility.
Some of the weakest currencies in history that experienced extreme hyperinflation include:
– Hungarian Pengő (1946): USD 1 equaled 460 trillion Pengő
– Zimbabwean Dollar (2008): USD 1 was worth 2.6 trillion ZWD
– German Deutsche Mark (1923): USD 1 reached 4.2 trillion Deutsche Marks
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