Weakest Currencies in the World 2025: 15 Economies Losing Value Fast

Currency value tells you a lot about a country’s economic health. Some currencies hold strong positions in global markets, while others face serious challenges that push their value down. The weakest currencies in the world often belong to nations dealing with inflation, political problems, or economic crises that erode purchasing power over time.

Understanding which currencies struggle the most can help travelers plan their trips, investors make more intelligent choices, and anyone interested in global economics see how different factors affect money. The weakest currencies in 2025 share common patterns like high inflation rates, limited foreign reserves, and ongoing political uncertainty that keeps their value low against major currencies like the US dollar.

In this article, you will find the 15 weakest currencies in the world ranked by their exchange rates, learn what economic factors drive currency weakness, explore regional patterns across continents, and understand the impact these currencies have on everyday people and international business.

Understanding Currency Weakness: The 2025 Context

Not all the weakest currencies in the world share the same story, but most follow similar patterns rooted in economic trouble. When a country faces high inflation, money loses purchasing power fast. Prices go up while the currency value drops, creating a cycle that can spiral out of control.​

1. Political Instability and Conflict

Governments facing uncertainty or conflict send warning signals to foreign investors, who quickly pull their money out. This creates more pressure on the currency as demand falls and people rush to convert their savings into stronger currencies like the US dollar or euro. Countries dealing with war, sanctions, or frequent government changes often see their currencies collapse.​

2. Economic Sanctions

Sanctions hit currencies hard by cutting off international trade routes. Export sanctions reduce the flow of foreign currency into a country, while asset freezes limit access to global reserves. Both situations create scarcity in the foreign exchange market, weakening the local currency as people scramble for dollars or other stable options.​

3. Recession and Poor Economic Growth

Weak economic growth makes currencies less attractive to global investors. Fewer people want to hold that currency when a country’s GDP drops or stays flat. The same happens when central banks lose credibility or fail to control inflation through interest rate policy. Low interest rates might help local economies in the short term, but they push foreign investors toward countries offering better returns.​

4. Trade Deficits

Countries that import more than they export need constant foreign currency supplies to pay for goods. This steady demand for dollars or euros while selling their own currency creates downward momentum lasting for years. Commodity-dependent nations face extra risk since their currency values often swing with global oil, metals, or agricultural prices.​

5. The 2025 Economic Reality

The current year shows these factors combining in different ways. Some currencies face sanctions and conflict, others deal with hyperinflation from printing too much money, while a few struggle with structural economic problems built up over decades. Understanding what drives weakness helps explain why certain currencies rank among the worst performers against the dollar.​

Black Market vs Official Exchange Rates

Many countries with weak currencies operate dual exchange systems. The official rate set by central banks often differs dramatically from black market rates, where people actually trade. Governments try to prop up official values through controls and restrictions, but this creates underground markets where the real purchasing power exists. The gap between these two rates signals how much pressure the currency faces and how little trust people have in official systems.

Top 15 Weakest Currencies in the World (2025) 

Below is a comprehensive list of the top 15 weakest currencies in the world (2025), comparing their value against the US dollar. The table highlights each country’s exchange rate, followed by detailed insights into the economic conditions, inflation trends, and political factors contributing to their currency depreciation.

Detailed Profiles of The Weakest Currencies In The World 

1. Lebanese Pound (LBP) – Lebanon

Exchange Rate: ~89,500 LBP per USD

The Lebanese pound is the world’s weakest currency, trapped in an unprecedented financial collapse. The currency has lost over 95 percent of its value since 2019, when civil unrest erupted. Banks froze foreign currency withdrawals, forcing people into unofficial markets where rates reached 89,500 pounds per dollar by October 2025. Hyperinflation reduced purchasing power dramatically, with food prices climbing over 500 percent. The country’s foreign exchange reserves plummeted from $17 billion to just $200 million. The Lebanese pound’s weakness reflects not temporary economic troubles but the structural bankruptcy of the banking system and national economy.​

2. Iranian Rial (IRR) – Iran

Exchange Rate: ~42,000-500,000 IRR per USD

Iran’s rial remains under extreme pressure from international sanctions and capital flight. The weakest currencies in the world include the rial, which has depreciated dramatically as sanctions tighten access to global finance. Black market rates exceed 1.1 million rials per dollar, far beyond official rates. Inflation surged to over 40 percent, eroding household purchasing power nationwide. The Iranian government announced plans to remove four zeros from the currency in a redenomination effort to simplify transactions and restore confidence. Political tension from renewed UN sanctions threatens further depreciation.​

3. Vietnamese Dong (VND) – Vietnam

Exchange Rate: ~25,000+ VND per USD

Vietnam’s dong ranks among the weakest currencies in the world despite strong economic fundamentals and trade surpluses. The State Bank deliberately keeps the dong weak to boost export competitiveness, which is part of a deliberate policy rather than a financial crisis. However, 2025 saw additional depreciation from higher US interest rates, increased import demand, and corporate foreign exchange pressures. The dong weakened approximately three to four percent year-to-date, testing record lows of 26,430 against the dollar. Vietnam’s import growth exceeded export growth in certain months, straining foreign exchange supplies. Despite these pressures, the Vietnamese economy remains relatively stable.​

4. Sierra Leonean Leone (SLE) – Sierra Leone

Exchange Rate: ~22,000+ SLE per USD

Due to decades of economic challenges and structural weaknesses, Sierra Leone holds the unfortunate title of Africa’s weakest currency. The country’s economy depends heavily on diamond and iron ore exports, leaving it vulnerable to commodity price shocks. When iron ore prices collapsed, foreign currency earnings dried up, creating massive depreciation pressure on the leone. A failed 2022 redenomination removed three zeros but could not address the underlying economic problems. Limited export diversification, chronic trade deficits, and debt burdens have ravaged the weakest currencies in Africa.​

5. Laotian Kip (LAK) – Laos

Exchange Rate: ~20,000+ LAK per USD

Laos’s kip has weakened significantly under pressure from high inflation and external debt burdens. Though inflation eased to 10.9 percent in early 2025 from 25.3 percent the year before, it remains well above comfortable levels. The central bank maintains a tight monetary policy to stabilize the weakest currencies in the world, raising policy rates substantially. High public debt at 116 percent of GDP leaves limited room for policy flexibility. Mandatory conversion requirements for export proceeds and capital controls pose risks to investor confidence. Recent improvements in exchange rate stability offer modest encouragement.​

6. Indonesian Rupiah (IDR) – Indonesia

Exchange Rate: ~15,000+ IDR per USD

Indonesia’s rupiah faces historic weakness, declining to record lows not seen since the 1998 Asian financial crisis. Political uncertainty under President Prabowo Subianto eroded investor confidence, triggering capital outflows and portfolio investment reversals. The rupiah depreciated approximately three percent year-to-date through October 2025, among the weakest currencies in the world and specifically the lowest in Asia. Bank Indonesia held policy rates at 4.75 percent to support the rupiah while managing growth concerns. Rising inflation and declining investor confidence continued to pressure the currency despite intervention efforts. Fiscal policy concerns added to depreciation pressure.​

7. Syrian Pound (SYP) – Syria

Exchange Rate: ~11,000+ SYP per USD

Syria’s pound collapsed dramatically after 14 years of civil war, which devastated the economy and government capacity. The currency depreciated from 47 pounds per dollar in 2011 to over 11,000 by late 2025 following the political transition. GDP contracted 85 percent from $67.5 billion to $9 billion as warfare destroyed infrastructure and productive capacity. Among the weakest currencies in the world, Syria’s pound exemplifies how prolonged conflict destroys monetary systems. Hyperinflation eroded purchasing power to near-zero levels. The new government announced redenomination plans to remove two zeros from banknotes. Foreign exchange reserves plummeted to just $200 million, severely limiting currency support.

8. Uzbekistan Som (UZS) – Uzbekistan

Exchange Rate: ~12,000+ UZS per USD

Uzbekistan’s som trades at approximately 12,000 per dollar, reflecting historical inflation and currency instability from the post-Soviet period. Following independence, the country experienced severe depreciation as inflation hit 1,000 percent annually in the early 1990s. Currency liberalization in 2017 gradually reduced black market premiums and improved exchange rate stability. Recent reforms and economic diversification efforts have provided some stabilization. However, the som remains among the weakest currencies in Central Asia and is counted among the weakest currencies in the world. The central bank continues managing exchange rates within a controlled floating framework.

9. Guinean Franc (GNF) – Guinea

Exchange Rate: ~8,500+ GNF per USD

Guinea’s franc ranks among Africa’s weakest currencies, trading at over 8,500 francs per dollar. The currency’s weakness reflects Guinea’s limited economic diversification and dependence on mining exports. High inflation, political instability, and external debt pressures have eroded the franc’s value. Limited foreign exchange reserves and capital flight during uncertain periods weakened the currency. Though Guinea possesses substantial natural resources, including bauxite, iron ore, and gold, institutional weaknesses prevent economic transformation. The weakest currencies in West Africa share patterns of commodity dependence and governance challenges.​

10. Paraguayan Guarani (PYG) – Paraguay

Exchange Rate: ~7,275+ PYG per USD

Paraguay’s guarani ranks among the weakest currencies in the world, despite recent strengthening due to declining US dollar values globally. Political instability and economic stagnation, with GDP growth averaging 2.5 percent annually, discouraged foreign investment. Overreliance on soybean exports left the country’s currency vulnerable to fluctuations in commodity prices. However, recent improvements in economic conditions and central bank dollar sales strengthened the guarani significantly in 2025. Despite trading at over 7,000 per dollar, Paraguay’s economy shows more resilience than other nations with weaker currencies in Latin America.​

11. Malagasy Ariary (MGA) – Madagascar

Exchange Rate: ~4,500+ MGA per USD

Madagascar’s ariary trades at approximately 4,500 per dollar, among the weakest currencies in Africa and part of the broader group of weakest currencies in the world. The island nation’s economy depends heavily on agriculture, vanilla exports, and developing tourism and textile industries. Political instability following the 2009 coup deterred foreign investment for years, weakening the currency. Though investment resumed after the elections in 2014, the economy remains vulnerable to external shocks. The ariary holds the unique distinction of being one of only two non-decimal currencies still in circulation globally. Persistent inflation and limited economic diversification maintain downward pressure.

12. Cambodian Riel (KHR) – Cambodia

Exchange Rate: ~4,035-4,040 KHR per USD

Cambodia’s riel trades at approximately 4,035-4,040 per dollar, reflecting significant dollarization and dependence on the US currency. Though Cambodia posts healthy trade surpluses and growing foreign direct investment, the riel remains weak among world currencies. The country faced high inflation of 2.99 percent in 2023 and imported inflation pressures. Structural weaknesses, including weak institutions, poor infrastructure, and high country risk premiums, keep the lowest currencies in the region under pressure. However, the riel’s stability greatly benefits prudent central bank management and continued macroeconomic discipline.​

13. Colombian Peso (COP) – Colombia

Exchange Rate: ~3,911 COP per USD

Colombia’s peso ranks among the weakest currencies in the world due to fragile fiscal positioning and current account deficits. The government’s complex fiscal outlook, marked by disputed pension reforms and ongoing security challenges, has undermined investor confidence. Credit rating agencies downgraded Colombia’s sovereign debt in 2025, reflecting concerns about unsustainable fiscal deficits. Large government deficits and suspended fiscal rules created uncertainty about the debt trajectory. Though strong remittances and foreign direct investment provide some support, fiscal deterioration threatens further peso depreciation. Regional elections in 2026 could complicate budgetary consolidation efforts.​

14. Burundian Franc (BIF) – Burundi

Exchange Rate: ~2,943-2,966 BIF per USD

Burundi’s franc trades at approximately 2,943-2,966 per dollar, ranking among the world’s weakest currencies, specifically in East Africa. The landlocked nation’s economy relies heavily on agriculture, particularly coffee and tea exports. Civil unrest and political instability discouraged foreign investment while inflation pressures mounted. The franc reflects limited industrialization, weak institutions, and dependence on subsistence farming by over 70 percent of the population. Foreign exchange reserves remain minimal, limiting the central bank’s ability to support the currency. The weakest currencies in Burundi and the region share patterns of agricultural dependence and governance challenges.​

15. Mongolian Tugrik (MNT) – Mongolia

Exchange Rate: ~3,400+ MNT per USD

Mongolia’s tugrik trades at over 3,400 per dollar, among the weakest currencies in the world, though it strengthened in 2025 after reaching record lows of 3,500 in early January. The currency faced intense depreciation pressure from China’s economic slowdown, commodity price volatility, and geopolitical tensions affecting mineral exports. The tugrik’s weakness reflects Mongolia’s structural dependence on commodity exports, particularly coal and copper, making the economy vulnerable to global price swings. However, rising foreign exchange reserves, substantial trade surpluses, and successful bond repayments improved the currency’s position by mid-2025. Global dollar weakness also supported the recent appreciation.

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Regional Breakdown: Weakest Currencies by Continent

Different regions face different reasons for currency weakness. Asian nations dealing with trade tensions, African countries struggling with import dependency, Middle Eastern states facing sanctions, and Latin American economies managing fiscal challenges all experience weakened currencies through different mechanisms.​

1. Asia: Trade Tensions and Capital Flight

Vietnam, Laos, Indonesia, Cambodia, and Mongolia saw their currencies depreciate as US-China trade tensions discouraged foreign investment. Central banks couldn’t match US rate hikes, creating differentials that pushed capital toward US treasuries. Indonesia’s FDI dropped 6.95 percent year-on-year to $12.5 billion in Q2 2025. US tariffs added import pressures that strained currency values further. Some relief emerged as the dollar’s weakness helped Thailand and Malaysia appreciate their currencies.​

2. Africa: Import Dependency and Commodity Reliance

Sierra Leone, Guinea, Madagascar, and Burundi face chronic foreign exchange shortages because they import far more than they export. Over two-thirds of imports are priced in US dollars, so any currency depreciation automatically raises food and fuel prices. One percent depreciation triggers 0.22 percent inflation within a year across sub-Saharan Africa.​

Commodity price swings worsen the problem. Sierra Leone relies heavily on diamond and iron ore exports without economic diversification. When prices fall, foreign exchange earnings collapse. External debt denominated in dollars becomes harder to repay. Central banks with depleted reserves cannot defend their currencies. Zimbabwe replaced its currency entirely with a new gold-backed ZiG in 2025.​

3. Middle East: Sanctions and Political Instability

Lebanon’s pound requires 89,500 units per dollar, while Syria’s trades at 11,000 following 14 years of civil war. Iran’s rial faces international sanctions that restrict global financial access. War and political isolation destroy productive capacity and spark capital flight. Foreign exchange reserves evaporate when governments cannot collect taxes or export earnings. The Lebanese central bank froze withdrawals above $20,000. Syria plans to print new currency notes since the pound became too devalued to circulate.​

4. Latin America: Fiscal Challenges and Export Pressure

Colombia’s peso weakened from large government deficits and credit rating downgrades. Yet Colombia maintains better trade balances than African nations and benefits from strong remittances. Brazil and Mexico saw currency appreciation in 2025 due to higher interest rates. Brazil’s 15 percent benchmark rate attracts carry traders. However, US tariff risks and above-target inflation threaten future stability.

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Conclusion

The weakest currencies in the world reflect deeper economic problems beyond exchange rates. War, sanctions, commodity dependency, and trade tensions drive currency collapse across different regions. Understanding these currencies matters for travelers and investors tracking global economics. Currency weakness signals structural issues requiring more than monetary policy fixes. While some nations find opportunities through weak currency policies, others desperately need international support to prevent complete economic collapse.