Top 10 Weakest Currencies in the World

As of mid-2025, several nations face severely devalued currencies against the US dollar. This article ranks the 10 weakest, including the Lebanese Pound and Iranian Rial, highlighting hyperinflation, sanctions, and economic instability as key drivers. Weak currencies lead to high import costs and reduced purchasing power, impacting national economies and citizens' daily lives globally.

Jul 31, 2025, 19:41 IST

Global trade and finance rely heavily on currencies, but not all of them are created equal. A country's political climate, economic stability, and confidence in the international market are all reflected in the value of its currency.

Many nations are experiencing severe financial difficulties as of mid-2025, which has led to record-low currency values relative to the US dollar. The ten weakest currencies in the world, their causes, and the wider economic ramifications are all examined in this article.

The 10 Weakest Currencies Against the USD (2025)

Rank	Currency Name	Country	Currency Code	Typical Exchange Rate (per 1 USD)	Main Drivers of Weakness
1	Lebanese Pound	Lebanon	LBP	89,000+	Hyperinflation, financial crisis
2	Iranian Rial	Iran	IRR	42,000–500,000*	Sanctions, inflation, isolation
3	Vietnamese Dong	Vietnam	VND	~26,000	Export policy, undervaluation
4	Sierra Leonean Leone	Sierra Leone	SLL	Highly depreciated	Governance, inflation, external debts
5	Laotian Kip	Laos	LAK	Deeply weakened	Fiscal crisis, low reserves
6	Indonesian Rupiah	Indonesia	IDR	16,000+	Inflation, capital outflows
7	Uzbekistan Som	Uzbekistan	UZS	~12,500	Reform after long central control
8	Guinean Franc	Guinea	GNF	~9,000	Commodity dependence, inflation
9	Paraguayan Guarani	Paraguay	PYG	~7,200	Current account deficit, inflation
10	Malagasy Ariary	Madagascar	MGA	~4,500	Economic instability, weak policy

Note: Iranian Rial rates vary between official and open markets.

Understanding Currency Weakness

Currency exchange rates are based on a combination of macro-economic stability, political power, and external relations. If a nation is plagued by chronic inflation, political instability, mismanagement of government, or is subject to external penalties, its currency tends to fall sharply in value.

Weak currencies generate:

High-cost imports and increased inflation
Loss of savings and purchasing power for residents
Obstacles to international investment

1. Lebanese Pound (LBP)

Battered by Lebanon's long-standing financial meltdown, the LBP has lost over 98% of its value since 2019. It is a mix of bank collapse, public debt, and eroded confidence that has made it that more than 89,000 LBP are today required to buy one US dollar.

2. Iranian Rial (IRR)

Sanctions, exclusion from international finance systems, and chronic inflation have led to the rial's dramatic devaluation. Depending on the rate used, the IRR can swing wildly, indicating profound instability.

3. Vietnamese Dong (VND)

Vietnam's dong is kept deliberately weak in order to support export competitiveness. The weakness of the dong, unlike the others on this list, is actually policy more than pure crisis.

4. Sierra Leonean Leone (SLL)

The SLL is in decline through sustained political crisis, high inflation, and debt accumulation without much foreign exchange stability.

5. Laotian Kip (LAK)

Low foreign reserves of the local economy, combined with fiscal mismanagement and external debts, have led to a sharp decline in the kip's value.

6. Indonesian Rupiah (IDR)

The region's biggest economy is confronted with moderate capital outflow pressures and inflation, leaving the rupiah constantly among the weakest in the world.

7. Uzbekistan Som (UZS)

The shift away from Soviet-era controls has caused the som to depreciate, even though recent reforms are seeking more stability.

8. Guinean Franc (GNF)

Even with Guinea's mineral wealth, monetary instability and excessive reliance on commodities weaken the franc's value.

9. Paraguayan Guarani (PYG)

Trade balance problems and chronic inflation continue to keep the guarani weak, with frequent devaluations necessary to maintain competitiveness.

10. Malagasy Ariary (MGA)

Madagascar's economic management issues, weak growth, and capital flight continue to undermine the ariary's value.

Why Do Weak Currencies Matter?

Domestic Impact: High inflation undermines incomes and savings, driving more citizens into poverty.
Trade Balance: Exports become more affordable—but imports, particularly necessities, become considerably more costly.
Policy Risks: Governments with depreciated currencies tend to have problems finding investors or paying off foreign debt.

The weakest currencies in 2025 highlight the paramount need for good economic management and political stability. Although some (such as Vietnam) deliberately keep their currencies low to secure export competitive advantage, the majority are weakened by a poisonous combination of inflation, debt, and uncertainty.

People living in those nations encounter difficult economic realities as governments struggle to re-establish monetary confidence and growth.

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