In this article, we explore the top 10 weakest currencies in the world in 2025, ranked by foreign currency exchange rate to the US dollar. We’ll also examine the root causes of their decline and the real-world effects on the people and economies behind them.
What Makes a Currency Weak?
A “weak” currency is one that has low value compared to one of the strongest currency in the world like the US dollar (USD) or euro (EUR). For example, if 1 USD equals 500,000 units of a currency, that currency has low purchasing power. While a weak exchange rate doesn’t always indicate a poor economy, it often reflects deeper economic or political issues.
Several key factors contribute to currency devaluation:
- Hyperinflation – Uncontrolled inflation erodes a currency’s value quickly, thus it’s important to know the best time to exchange currency.
- Sanctions and trade restrictions – Countries facing economic isolation tend to have weaker currencies.
- Political instability – Civil unrest and poor governance damage investor confidence.
- Fiscal mismanagement – Excessive money printing, debt accumulation, or low interest rates can weaken a currency.
- Trade imbalances – Import-heavy economies put downward pressure on their own currencies.
How This List Was Compiled
This ranking is based on the nominal exchange rate of each currency to 1 USD as of May 2025. A higher exchange rate means the currency is weaker: for example, 1 USD = 100,000 units of local currency. While exchange rate alone doesn’t determine economic strength, it provides a clear snapshot of a currency’s global value.
Top 10 Weakest Currencies in the World (2025)
Some currencies have lost much of their value against the US Dollar in recent years. Discover how economic choices and global events shape these weak currencies, setting the stage for deeper insights ahead.
Iranian Rial (IRR) – Iran
The Iranian rial remains the weakest currency in the world in 2025. Decades of U.S.-led sanctions have cut Iran off from global markets, and its dual exchange rate system distorts real value. Inflation, reduced oil revenues, and economic mismanagement have pushed the rial to over 500,000 per USD.
For ordinary citizens, this means unaffordable prices and a shrinking middle class. Despite attempts at stabilization, Iran’s currency remains a casualty of geopolitical strain.
Exchange rate: 1 USD ≈ 501,000 IRR
Vietnamese Dong (VND) – Vietnam
Vietnam’s dong ranks second but is kept undervalued intentionally to boost exports. The country is now a global manufacturing hub, attracting strong foreign investment.
Unlike others on this list, the dong is relatively stable, supported by solid foreign reserves and controlled inflation. Its low nominal value reflects strategy, not crisis.
Exchange rate: 1 USD ≈ 24,700 VND
Sierra Leonean Leone (SLE) – Sierra Leone
In 2022, Sierra Leone introduced the new leone (SLE), slashing three zeros from its old currency. But challenges persist. Inflation, public debt, and low productivity keep the currency weak. Import costs remain high, particularly for food and fuel, deepening poverty. Despite aid and debt relief, the leone remains one of Africa’s weakest currencies.
Exchange rate: 1 USD ≈ 21,000 SLE
Indonesian Rupiah (IDR) – Indonesia
Despite being Southeast Asia’s largest economy, Indonesia’s rupiah remains weak due to past crises and structural issues. Inflation, commodity dependency, and external debt continue to weigh it down. While macroeconomic indicators have improved, legacy issues from the 1997 financial crisis and global uncertainty keep the rupiah undervalued.
Exchange rate: 1 USD ≈ 16,300 IDR
Lao Kip (LAK) – Laos
The kip has sharply depreciated in recent years, driven by mounting debt – especially to China – rising inflation, and falling reserves. The result is surging food prices and restricted access to foreign goods. Government reforms have had limited impact amid low investor confidence.
Exchange rate: 1 USD ≈ 21,400 LAK
Uzbekistani Soʻm (UZS) – Uzbekistan
The soʻm remains low in value but has seen some reform. Since 2017, Uzbekistan has shifted to a market-based exchange rate, improving transparency. However, inflation, centralized planning legacies, and structural inefficiencies remain obstacles. Modernization is underway, but transformation will take time.
Exchange rate: 1 USD ≈ 12,500 UZS
Guinean Franc (GNF) – Guinea
Guinea’s franc reflects ongoing political instability and underdevelopment. Despite resource wealth, corruption and poor governance prevent sustainable growth. The weak currency drives up import costs and widens inequality. Slow reform progress keeps the franc among Africa’s most devalued currencies.
Exchange rate: 1 USD ≈ 8,800 GNF
Paraguayan Guarani (PYG) – Paraguay
Paraguay’s guarani is historically weak due to past inflation and a monetary policy focused on competitiveness. However, the country has low public debt and steady GDP growth. Its position here highlights how nominal value doesn’t always reflect economic weakness.
Exchange rate: 1 USD ≈ 7,350 PYG
Congolese Franc (CDF) – Democratic Republic of Congo
Conflict, corruption, and poor infrastructure continue to depress the Congolese franc. High inflation and low reserves leave little room for recovery. Though foreign aid exists, instability deters investment. The weak franc deepens poverty and restricts economic development.
Exchange rate: 1 USD ≈ 2,700 CDF
Burundian Franc (BIF) – Burundi
The Burundian franc rounds out the list. High inflation, low exports, and limited capital access define its weakness. Essential imports are unaffordable for many, and reforms are stalled by political tension. As a result, the franc continues to lose ground.
Exchange rate: 1 USD ≈ 2,560 BIF
Why Some Countries Maintain a Weak Currency
A weak currency can be strategic. It makes exports cheaper and more competitive, attracting foreign buyers and boosting sales. It also appeals to budget travelers, helping local tourism and businesses grow.
Some governments intentionally devalue their currency. Central banks may print more money or sell foreign reserves to do this. Argentina, for example, limited foreign currency access in 2020 to keep the peso low. Japan allowed the yen to weaken in 2022 to support exporters. These moves aim to strengthen key sectors like manufacturing and tourism.
The Risks and Consequences of a Weak Currency
While short-term benefits exist, being among the top 50 weakest currencies in the world brings serious downsides.
Import Costs
A weak currency raises the cost of imports like fuel, medicine, and electronics. Countries reliant on imports – like Iran – struggle as more money is needed for essential goods, pushing up local prices.
Inflation
Higher import costs fuel inflation. When currencies lose value, daily essentials become more expensive. In Iran and Venezuela, inflation has eroded purchasing power and worsened living conditions for many families.
Investment Inflows
Weak currencies discourage foreign investment. Rapid declines, like those of the Iranian Rial or Congolese Franc, cause capital flight as investors seek stability elsewhere. This slows growth and limits job creation.
Public Trust
Trust in money matters. When confidence drops, people often turn to stable currencies like the U.S. dollar. In Venezuela, for example, the bolivar lost so much value that locals now rely heavily on dollars. A loss of trust can destabilize the entire economy.
Long-Term Challenges
Short-term devaluation may help exports, but long-term instability delays recovery. Weak currencies scare off investors and hinder trade deals. Global integration depends on stability – something the weakest currencies in the world often lack.
Currency Devaluation vs. Depreciation
Devaluation is a planned move by governments in fixed-rate systems to lower currency value and boost exports, while depreciation happens in floating systems, driven by market forces like political turmoil or falling interest rates.
Some examples include: Iran devaluing the Rial following U.S. sanctions, Vietnam strategically devaluing its dong to remain export-competitive, and Lebanon’s pound losing value due to ongoing political and economic crises.
These patterns are common among the top 50 weakest currencies – some weaken by choice, others due to market failures.
Central Bank Intervention
Central banks try to stabilize currencies by raising interest rates or using reserves. Iran’s central bank adjusted rates multiple times between 2023 and 2024 to counter hyperinflation.
While devaluation can support exports, most banks avoid drastic swings that disrupt trade and daily life. Balance is key – too weak, and a currency risks ranking among the weakest currencies in the world; too strong, and exports can falter.
Frequently Asked Questions (FAQs)
What is the weakest currency in the world in 2025?
The Iranian Rial is currently the weakest based on its exchange rate to the US Dollar.
Why do some countries have extremely low currency values?
Often due to inflation, sanctions, debt, or lack of investor confidence in the local economy.
Is a weak currency always a bad sign for the economy?
Not always. It can help boost exports or tourism but also raises import costs and inflation.
Can weak currencies recover in value?
Yes, with stable policy, economic reform, and improved global trade relations.
What is the difference between low currency value and economic failure?
A weak currency may exist in an otherwise stable country with specific monetary goals, while economic failure involves widespread systemic issues.
How does a weak currency affect citizens?
It typically reduces purchasing power, increases prices for imports, and lowers real wages.
References
Wise. (n.d.). Weakest currencies in the world. Wise. Retrieved May 26, 2025, from https://wise.com/gb/blog/weakest-currencies-in-the-world
XE. (2025, February 11). Weakest currencies in the world. https://www.xe.com/blog/currency-news/weakest-currencies-in-the-world/
XS. (n.d.). Top 10 weakest currencies in the world. XS. Retrieved May 26, 2025, from https://www.xs.com/en/blog/weakest-currencies-in-the-world/
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