Economic contraction or currency depreciation: Top 10 weakest currencies in 2025

The currencies of different countries are not equally valuable. Some currencies are so weak that you need tens of thousands to exchange for just one US dollar. This situation arises from varying economic issues, from hyperinflation to lack of foreign investor interest and ongoing political crises.

Factors Causing Currency Devaluation

First, we need to understand that exchange rates are controlled by many factors, not just demand for trading. High interest rates, political stability, inflation, and foreign investment inflows all influence exchange rate dynamics. Countries experiencing hyperinflation or severe political turmoil often see their currencies fail under these pressures.

Comparison Table: Top 10 Weakest Currencies

Devaluation Sequence: From Crisis to Underdevelopment

Level 1: Severe Financial Crisis

Lebanese Pound (LBP) - 89,751.22 per 1 USD

Lebanon is experiencing its worst economic crisis in modern history. Since 2019, the country has faced triple-digit inflation, nearly wiped out the middle class, and its banking sector is nearly collapsed. The Lebanese Pound, once pegged to the US dollar, has lost 90% of its value. Parallel markets are thriving, with rumors that Lebanon defaulted on debt in 2020, and the currency has been abandoned like an old shoe.

The main issue is multiple exchange rate policies—the government maintains an official rate, but the actual market demands much more, creating a huge disparity.

Iranian Rial (IRR) - 42,112.50 per 1 USD

Iran is well known for its inability to export effectively. Decades of Western sanctions have isolated Iran from the global financial system. Heavy reliance on oil, geopolitical tensions, and market manipulation have all contributed to the Rial’s collapse. Despite attempts to liberalize the economy, bans on oil sales and other restrictions have kept the Rial weak.

Level 2: Developing but Overrun Economies

Vietnamese Dong (VND) - 26,040 per 1 USD

Vietnam is focused on growth—its economy has been steadily expanding. But why is the Dong so low? Because it operates under a “managed floating system.” The Vietnamese central bank actively prevents the Dong from appreciating too much, as that would make exports more expensive and hurt growth. The Dong’s weakness actually benefits Vietnam by maintaining a trade surplus, attracting tourism and investment. - Old but good.

Lao Kip (LAK) - 21,625.82 per 1 USD

Laos is a relatively slow-developing country, heavily reliant on agriculture. Foreign investment is scarce, infrastructure is underdeveloped, and after the Vietnam War, Laos was under the influence of Vietnam and the Soviet Union. Its economy is tightly controlled, and after opening up, the Kip has continued to weaken. When COVID-19 hit, Laos’ economy suffered, inflation soared, and the currency plummeted.

Level 3: Emerging Markets with Problems

Indonesian Rupiah (IDR) - 16,275 per 1 USD

Indonesia is a large country with many people, yet the Rupiah remains weak. It depends heavily on commodity exports—oil, coal, palm oil. When commodity prices fall, the Rupiah declines. The 1997 Asian financial crisis devastated the currency, with public debt growing rapidly and the central bank needing to intervene with limited reserves. Still, Indonesia’s economy is growing, tourism and investment are flowing in, and the Rupiah retains some strength despite ongoing weakness.

Uzbek Sum (UZS) - 12,798.70 per 1 USD

Uzbekistan was once a Soviet backyard. After declaring independence in 1991, its economy struggled. Inflation caused the Sum to weaken. Today, Uzbekistan remains cautious with strict economic controls. Foreign investment is limited, and after opening up, the Sum continues to depreciate gradually.

Level 4: Small Economies with Low Value

Guinean Franc (GNF) - 8,667.50 per 1 USD

Guinea has limited development, weak infrastructure, ongoing political instability, which drives away foreign investors. The Guinean Franc has little appeal. Locals often flee the currency, turning to remittances and other assets. The economy is undiversified, relying on minerals and other resources. The Franc continues to fall.

Paraguayan Guarani (PYG) - 7,996.67 per 1 USD

Paraguay is a small South American country dependent on agriculture—rice, soybeans. Past conflicts and ongoing instability have prevented full recovery. The trade balance is negative, and the Guarani continues to weaken.

Malagasy Ariary (MGA) - 4,467.50 per 1 USD

Madagascar is a remote island with political instability, erratic weather, and a struggling economy. The Ariary’s value is low accordingly.

Burundian Franc (BIF) - 2,977.00 per 1 USD

Burundi is one of the poorest countries in the world. Food crises, lack of infrastructure, and unrest have kept the Franc weak. It is approaching “toy program” levels of valuation.

Summary: Why Do Currencies Devalue?

Exchange rates are not fixed—they reflect the overall health or suffering of an economy. When a country faces a crisis, its currency devalues; when it grows, the currency appreciates. Sometimes, currencies are intentionally devalued to boost exports—low exchange rates help exports compete better.

Conversely, countries with low inflation, abundant tourism, and straightforward policies tend to have stronger currencies, like Russia’s ruble, which isn’t much weaker than Thailand’s baht partly due to Russian support—similar to many superpowers.

Other news: Bitcoin’s all-time high reached 100k! Some say, “If the currency devalues, at least I still have crypto”—sounds like a smart idea… or not?