The weakest currencies in the world: 10 currencies tied to economic issues in 2025

Currencies are under pressure from high inflation rates, political crises, and a lack of economic diversification. Understanding why some currencies are weak can help investors see the bigger picture of the global economy.

Summary Table of the Lowest Currencies in the World Market Today

In-Depth Analysis of Weak Currencies

1. Lebanese Pound (LBP) – The Worst Currency Crisis

The Lebanese Pound has been monitored since 1939 and was once stable, pegged to the US dollar. However, due to prolonged political and economic crises, this currency has lost over 90% of its value on the black market.

Deteriorating Economic Conditions:

• Lebanon experienced the most severe modern economic downturn
• Triple-digit inflation for consecutive periods
• Banking sector nationwide has collapsed
• The government defaulted on debt in 2020

Exchange Rate: 89,751.22 LBP/USD
Monetary Policy: Multiple exchange rate system despite official peg

2. Iranian Rial (IRR) – Impact of Economic Sanctions

The Rial has a long historical record, but in recent centuries, it has suffered from strict sanctions, dependence on oil, and political instability.

Main Factors Causing the Rial’s Low Value:

• Economic sanctions from the US and allies
• Ongoing geopolitical tensions
• Heavy reliance on oil exports
• Severe inflation

Exchange Rate: 42,112.50 IRR/USD
Monetary Policy: Officially pegged but managed with a floating system in practice

3. Vietnamese Dong (VND) – Growth Amidst a Still Weak Currency

Vietnam’s story is interesting: the country split into two parts in 1954 and reunified in 1975. Since then, the currency has been tightly managed.

Current Situation:

• Managed floating system with strict controls
• Currency pegged to a basket of currencies
• Vietnam has a trade surplus, which is beneficial
• Currency depreciation helps boost export competitiveness

Exchange Rate: 26,040 VND/USD
Monetary Policy: Managed floating

4. Laotian Kip (LAK) – An Underdeveloped Economy

This currency has been in use since 1952 when Laos gained independence from France. Laos remains one of the least developed countries in Southeast Asia.

Barriers to Kipping’s Appreciation:

• Heavy dependence on agriculture
• Limited foreign investment
• Economic stability remains fragile
• Post-COVID-19 pressures increased

Exchange Rate: 21,625.82 LAK/USD
Monetary Policy: Managed float

5. Indonesian Rupiah (IDR) – A Fragile Emerging Currency

Despite Indonesia being the 4th most populous country and experiencing economic growth, the Rupiah remains vulnerable due to emerging market concerns.

Reasons for Rupiah’s Weakness:

• Heavy reliance on commodity exports
• Sensitivity to oil and other commodity prices
• Central bank occasionally intervenes in the market
• Capital outflows during periods of investor flight to safe assets

Exchange Rate: 16,275 IDR/USD
Monetary Policy: Free-floating system

6. Uzbek Sum (UZS) – A Controlled Economy

Uzbekistan declared independence from the Soviet Union in 1991, and its currency has been in use since 1994.

Why the Sum is undervalued:

• Strict government controls
• Limited foreign investment
• Economy reliant on agriculture and resources
• Inflationary pressures
• Gradual economic reforms underway

Exchange Rate: 12,798.70 UZS/USD

7. Guinean Franc (GNF) – An Economy Lacking Diversity

Guinea gained independence from France and adopted the Guinean Franc in 1959. The country still struggles with instability.

Reasons for Low Currency Value:

• Ongoing political instability
• Economy dependent on mining and natural resources
• Weak infrastructure
• Corruption issues

Exchange Rate: 8,667.50 GNF/USD

8. Paraguayan Guarani (PYG) – A History of Crises

The Guarani has a long history since 1945 but has faced inflation and debt crises multiple times.

Current Challenges:

• Dependence on agricultural exports, especially soybeans
• Persistent trade deficits
• High public debt
• Relatively small economy

Exchange Rate: 7,996.67 PYG/USD

9. Malagasy Ariary (MGA) – A Non-decimal Currency

The Ariary was introduced in 2005, replacing the Malagasy Franc. It has a unique feature: 1 Ariary = 5 Iraimbilanja.

Economic Challenges:

• Reliance on agriculture and tourism
• Vulnerability to natural disasters
• Ongoing political instability
• Widening poverty

Exchange Rate: 4,467.50 MGA/USD

10. Burundian Franc (BIF) – The Poorest Country

Burundi is one of the poorest countries globally, with the Burundian Franc in use since 1964.

Major Issues:

• Economy dependent on subsistence farming
• Chronic trade deficits
• High inflation and political unrest
• Reliance on foreign aid

Exchange Rate: 2,977.00 BIF/USD

Key Factors Contributing to Currency Depreciation

Interest rates and inflation

High interest rates often attract foreign investment, while high inflation erodes currency value.

Balance of payments status

Countries with trade deficits face pressure on their currencies due to higher demand for foreign currencies than domestic ones.

Political stability and business environment

Political instability, corruption, and unclear regulations reduce investor confidence.

Dependence on natural resources

Countries relying on oil, metals, or commodities are vulnerable to global market fluctuations.

Summary

The weakest currencies in the world are not caused by a single reason. Countries battling deep structural economic issues—from political crises and high inflation to lack of diversification—must understand these factors to make smarter financial decisions.