Currency instability creates a web of interconnected consequences that reshape everything from your grocery bill to geopolitical stability. These monetary meltdowns create cascading effects that touch every corner of the global economy, often in ways that seem completely unrelated to the original crisis. What happens in distant currency markets doesn’t stay in distant currency markets.
- Over the past year, the dong weakened 4.46% against thedollar, closing at 25,460 dongs per dollar.
- Below is the list of the top 25 weakest currencies in the world as of January 2026 against the US Dollar (USD).
- For governments, it significantly lowers the burden of servicing foreign-denominated debts and attracts international investors seeking stability and appreciation potential.
- In the 20th century, it was pegged to multiple currencies – initially the French franc, followed by the British pound, and finally the US dollar.
- Political instability, international sanctions, and a mass exodus of citizens fleeing poverty added to the chaos.
- Although the Vietnamese dong displays relative monetary stability compared to other currencies on this list, it is still vulnerable to inflation and external factors.
The Iranian rial has also been suffering from constant geopolitical tensions, reliance on oil exports, and lack of trust due to skyrocketing inflation. This is due to Iran being subject to strict economic sanctions by the United States and its allies for a long period of time, which has put the local economy under significant pressure and capped its potential. Trust in the currency has been eroded, which led to a flight of capital from the country. The Lebanese pound – sometimes also called the Lebanese lira – is the official currency of Lebanon.
It’s a former French colony, which meant Madagascar used the Malagasy franc pre- and post-independence in 1960. The local currency is named after the people inhabiting Paraguay – the Guarani tribe. Guinea has witnessed relentless inflation over the decades, with annual average inflation typically topping 10% since at least 2005. Managed decline helped to reduce inflation and stabilise depreciation into the mid-2010s, moving to around 3,000 som per USD in 2016. Since late 2021, the LAK has seen significant depreciation against the dollar.
Despite attempts at stabilization, Iran’s currency remains a casualty of geopolitical strain. It allows users to see their complete financial picture in one place, making money management simpler and more transparent. In 2025, several countries continue to battle these challenges, leading to severely devalued currencies compared to the US dollar (USD).
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If you are a freelancer or a remote worker working with clients overseas, Elevate Pay helps you make the most of your hard-earned money. However, with the right knowledge and insights, you can use these currencies to your advantage and leverage in terms of investment and business expansion. Military unrest and high inflation have also led to continuous devaluation for years.
The 10 Weakest Currencies Against the USD (
The Iranian Rial is currently the weakest based on its exchange rate to the US Dollar. Global integration depends on stability – something the weakest westernfx review currencies in the world often lack. While short-term benefits exist, being among the top 50 weakest currencies in the world brings serious downsides.
Updated Summary Table: Top 10 Weakest Currencies in 2025
The country is known for its incredibly diverse wildlife, rich cultural sites and fabulous capital city of Asunción. Landlocked South American country Paraguay has Argentina, Brazil lexatrade review and Bolivia as its neighbours. The PYG is also hampered by corruption and counterfeit currency. But those that do visit this beautiful country discover friendly people, a rich and diverse cultural heritage and stunning natural landscapes.
- That might sound arbitrary, but this threshold represents the point where money stops functioning as money.
- After learning about these currencies, you might have some burning questions about why some currencies fall where they do in the rankings.
- Unlike truly failing currencies, the Rupiah’s extreme exchange rate stems from the lasting trauma of the 1997 Asian Financial Crisis that nearly destroyed Indonesia’s banking system.
- The currency became more stable following a series of market reforms but has been in a steady downtrend amidst ongoing economic challenges.
- The Iranian Rial is known as the world’s least valuable currency.
- The result is surging food prices and restricted access to foreign goods.
In addition, the risk of currency and financial crises escalates. For long-term currency stability, it is necessary for the Paraguayan economy to avoid becoming too dependent on a single sector. Capital inflows into the Uzbek economy can provide substantial support for the national currency. The country’s commitment to implementing reforms directly correlates with its potential to strengthen the currency.
Whether due to internal mismanagement or external pressures, these currencies continue to struggle on the global stage. Meanwhile, other nations, such as Vietnam and Laos, have undervalued currencies as part of government strategies to encourage exports. High inflation, poor governance, and lack of foreign investment all contribute to their low valuation. The Ugandan Shilling is also on the list, primarily due to economic challenges like low levels of foreign investment and reliance on agriculture. Economic dependency on agriculture, political instability, and limited diversification contribute to its continued low value. Paraguay’s Guarani remains one of the lowest-value currencies globally.
It can help boost exports or tourism but also raises import costs and inflation. Weak currencies scare off investors and hinder trade deals. Short-term devaluation may help exports, but long-term instability delays recovery. A loss of trust can destabilize the entire economy.
Uzbekistan som
This causes a balance of payments deficit and the inflation rate to grow. Denomination means a change in the nominal value of banknotes, usually after hyperinflation, to stabilize the currency and simplify calculations. Many Cambodians prefer to use the US dollar for payments now, which causes the local currency to devalue even more. It suffered a disastrous economic downturn, combining inflation, corruption, low education quality, an enormous number of poor people, high unemployment, etc.
Iran’s central bank adjusted rates multiple times between 2023 and 2024 to counter hyperinflation. Central banks try to stabilize currencies by raising interest rates or using reserves. A weak currency can be strategic. The weak franc deepens poverty and restricts economic development.
These include high inflation, slow economic growth and increasing foreign debt. A weak currency can be defined as one with a low or decreasing value in comparison to other currencies. European currencies—including the Euro, Swiss franc, and Gibraltar pound—also rank among the world’s highest-valued units. The US dollar, on the other hand, is tenth on the list of the strongest currencies and is the world’s largest reserve currency, meaning it is the currency most commonly held by central banks.
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While there are 180 currencies recognised as legal tender worldwide, only a select few are truly considered the strongest and most valuable. But this is not enough to support the local economy at an appropriate level. So, no wonder that this currency is considered the most inflated in the world.
This began in 1979 following the Islamic Revolution, a time when numerous businesses abandoned Iran due to political instability. Thus, let’s look at the 10 cheapest foreign currencies against the US Dollar and Euro. But while making this list, we found it pretty hard to put the least valuable currencies in proper order, since the economic situation is changing rapidly in all these countries. Madagascar’s economic management issues, weak growth, and capital flight continue to undermine the ariary’s value. Trade balance problems and chronic inflation continue to keep the guarani weak, with frequent devaluations necessary to maintain competitiveness.
Black markets typically emerge when the trust in the local currency and the exchange rate set by the government is diminished. The country has been running a trade deficit for a prolonged period of time, which is increasing demand for foreign currency and weakening the demand for the guarani. Guinea has been plagued by ongoing political instability and an economic crisis, which has brought the franc under avatrade broker significant pressure. Despite that, the country’s economy remains very reliant on the export of natural resources, inflation remains high, and there is little economic diversification.
Guinea’s predominantly cash-based economy and underdeveloped banking sector further hamper monetary policy effectiveness. Vietnam’s central bank carefully manages a system designed for slow, steady depreciation that supports the export-focused economy. The Rial’s dramatic collapse results from a brutal combination of forces crushing Iran’s economy.
Without structural reforms, Lebanon’s economy remains fragile, keeping the pound at record lows. Years of political deadlock, banking collapse, soaring inflation, and public unrest continue to push the LBP down. While these currencies continue to lose value, the Saudi Riyal (SAR) remains one of the world’s most stable, backed by strong oil revenues and its peg to the US dollar. In contrast, the strongest currencies in the world hold power thanks to stability, trust, and economic strength.