As a result, the situation improved, leading to the stabilization of Iran’s local currency. These factors collectively harmed the economy and led to an almost 400% devaluation of the Iranian Rial. This situation worsened with the Iran-Iraq War and economic sanctions imposed due to Iran’s nuclear canadian forex brokers activities. The Iranian Rial is known as the world’s least valuable currency. However, it is possible to identify certain devalued national currencies at the moment. For example, British Pound Sterling, Swiss Franc (Swissie), US Dollar, Euro – these currencies are the most stable, as well as the countries issuing them (see TOP 10 the strongest currencies).

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The Argentine Peso (ARS) has faced high inflation and devaluation. The Shilling’s depreciation stems from reliance on agriculture and challenges like inflation and trade imbalances. The primary reason for the Guinean Franc’s weakness is Guinea’s over-reliance on mining exports, particularly bauxite and gold. The Indonesian Rupiah (IDR) is the official currency of Indonesia, issued and regulated by Bank Indonesia.

This means that any significant fluctuations in global market prices are directly reflected in the Guinean franc. In order to stabilize the country’s economy and the national currency, it is essential to rebuild factories, establish international trade, and create new jobs. The ongoing economic crisis in Syria, marked by hyperinflation and a scarcity of essential goods, has severely impacted the people and the economy. Investors should consider several key factors to accurately predict future exchange rates. For instance, the recent devaluation of the Uzbek currency was aimed at enhancing the competitiveness of Uzbek goods in global markets.

• Considering its natural gifts like gold, diamonds, and aluminum, this country’s currency should be one of the most valuable.
• The government’s policy of addressing the budget deficit by injecting money into the economy is one of the reasons for these challenges.
• Many factors play a pivotal role in dragging down a currency’s value.
• There’s plenty for investors to like about the market’s rebound off this week’s lows – just don’t look at the U.S. dollar.
• Additionally, Madagascar endures frequent cyclones and natural disasters, which destroy crops, roads, and infrastructure, setting the economy back repeatedly.
• Top 10 weakest currencies in the world.

Why is the Uzbekistani Som (UZS) weak?

But remember that exchange rates fluctuate constantly based on factors such as economic conditions, interest rates and geopolitical events. One of the easiest ways to work out which currency is weaker is to compare one currency to another, using exchange rates. Madagascar’s currency experienced a significant drop in value around 2009, caused by a mix of natural disasters, political instability and the fallout of the global financial crisis. It remains one of the world’s weakest currencies due to factors such as military unrest and high inflation. Determining the most and least valuable currencies requires evaluating factors such as foreign exchange supply and demand, inflation, economic growth, central bank policies, and overall economic stability.

Laotian Kip (LAK)

Sierra Leone relies heavily on commodities like diamonds and agriculture, making its currency vulnerable to fluctuations in the global market. Inflation, high unemployment, a lack of foreign investment, and political instability have all massively devalued the rial. Lebanon’s depressed economy and high inflation are two main factors contributing to this state of the currency. The Lebanese Pound is the world’s weakest currency and has been this way for a few years. A weak currency is one with low or descending value against other currencies. Backed by strong oil revenues, foreign reserves, and its peg to the US dollar, the Riyal protects Saudi Arabia’s economy and ensures security for expatriates sending remittances.

It’s a complex interplay of inflation rates, political instability, and poor economic conditions – a combination of factors that drag currency values down. You’ll discover why some of the world’s most resource-rich countries have the weakest currencies, how political chaos creates economic disaster, and what happens when entire populations lose faith in their money. The Lebanese pound has officially become the world’s weakest currency after the government allowed the official and unofficial exchange rates to Binance cryptocurrency exchange align in early 2024. The Guinean franc’s weakness – trading at roughly 8,655 GNF to one US dollar – reveals how political instability creates economic vulnerability in resource-rich nations. The Vietnamese Dong ranks among the world’s numerically weakest currencies at roughly 26,045 to the dollar, creating a striking paradox where a booming economy uses nearly worthless money.

• The second pricing method is a fixed rate, also known as a pegged rate.
• The South Sudanese Pound (SDG) is among the world’s weakest currencies.
• At the same time, the weak currency plays into Vietnam’s favor as the country is running a trade surplus, giving it a competitive advantage.
• What foreign investors think matters enormously – if they get spooked and pull their money out during tough times, it can trigger devastating downward spirals that are nearly impossible to reverse once they start rolling.
• When referring to the “worst” or “weakest” currency, we often mean one with the lowest value when exchanged for major global currencies.
• Short-term devaluation may help exports, but long-term instability delays recovery.

If you’ve ever wondered what the weakest currency in the world is and why some currencies end up so devalued, you’re in the right place. That could suggest the dollar’s reputation in global financial markets has been further tarnished by President Trump’s latest use of tariff threats, as well as his actions abroad since retaking office a year ago. In Zimbabwe during peak hyperinflation, citizens abandoned their own money so completely that the US dollar became the de facto currency for any serious transaction.

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The dollar’s drop over the last few days has also been fueled by abrupt moves in the Japanese yen, after Prime Minister Sanae Takaichi called a snap election. In 2025, the dollar index logged its worst year since 2017, having declined 9%. “It’s hard to compete when they devalue. But they always want our dollars.” Speaking to reporters in Iowa, Trump said he wanted the U.S. currency to “just seek its own level, which is the fair thing to do.” As the dollar drops, it becomes “more expensive for Americans to travel abroad,” Morgan Stanley analysts wrote last year.

Beyond writing, I thrive on debating and devouring political literature. We deal in any currency, and we’ll ship directly to you safely and securely. Political instability, international sanctions, and a mass exodus of citizens fleeing poverty added to the chaos. Additionally, Madagascar endures frequent cyclones and natural disasters, which destroy crops, roads, and infrastructure, setting the economy back repeatedly. And, the country’s reliance on diamond exports (a resource often linked to smuggling and illegal trade) hasn’t helped stabilize the Leone.

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The Zimbabwean dollar is the world’s second weakest currency. Political instability, widespread corruption, falling foreign exchange reserves, and mounting external debt all put pressure on the pound. Perhaps most tellingly, observe whether locals themselves prefer to hold savings in their national currency or routinely convert to dollars or euros – this real-world behavior reveals more about true currency weakness than any single economic metric. The most revealing indicators often combine inflation rates with interest rate differentials, current account balances, and political stability metrics to form a comprehensive picture of relative strength. The globe’s most fragile currencies expose the ways economic weakness emerges through a complex dance of political chaos, overreliance on commodities, historical traumas, and monetary decisions.

The leone’s persistent vulnerability reflects Sierra Leone’s struggle to transition from post-conflict recovery to sustainable development, creating a financial environment where ordinary citizens must navigate constant inflation while international investors remain wary of committing capital to the economy. Despite the country’s rich diamond and mineral resources, the leone struggles against systemic challenges including rampant corruption, poor governance structures, and an economy overly dependent on raw material exports vulnerable to global price fluctuations. At home, terrible economic policies with heavy subsidies and price controls have warped markets and unleashed runaway inflation. With bank deposits still blocked and inflation around 200%, the Lebanese pound serves as a stark reminder of how easily currency stability may break down. When central banks make things worse by cranking out too much cash or keeping interest rates unnaturally low, they’re basically putting their currency on a fast track to becoming worth less. Sometimes a weak currency can help a country’s export industry by making its goods more accessible for overseas consumers, despite the fact that it is frequently seen unfavorably.

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. Below is a list of the 25 weakest currencies in the world as of 2026, ranked by their luno exchange review exchange rate against the U.S. dollar, with higher exchange rates indicating lower currency value.. Determining currency weakness isn’t as simple as comparing raw exchange rates – the Japanese yen trading at 150 per dollar doesn’t make it inherently “weaker” than the British pound at 1.3 per dollar. The Guinean Franc (GNF) is one of the weakest currencies both in Africa and globally, mainly due to economic instability and high inflation. Most of the weakest currencies in the world share very similar challenges like corruption, political instability, and economic diversification. Whether you’re a traveler, investor, or just curious about the global economy, understanding the weakest currencies in the world gives you insight into how complex and interconnected the currency landscape truly is.

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Simply put, it reflects the current exchange rate position and purchasing power of a currency in global markets. When sending money across borders, exchange rates can tell surprising stories about global economies. The Sierra Leonean Leone (SLL or SLE) is currently the weakest currency in Africa in terms of exchange rate against the US Dollar. The currency’s severe devaluation due to economic collapse, inflation, and financial instability in Iran. The lowest currencies in the world, such as the Lebanese Pound, Iranian Rial, and Venezuelan Bolívar, struggle due to economic instability, hyperinflation, and political uncertainty.

When thinking about the global economy, the value of a country’s currency often provides a direct reflection of its financial health and stability. Rampant inflation, political instability, wars, economic sanctions, lack of foreign investment, high trade deficit, and lack of economic diversification are some of the main reasons. The title of the world’s weakest currency currently belongs to the Lebanese pound, after the central bank agreed to align the official rate with the unofficial one in early 2024. Its central bank has been forced to adjust the pound’s official exchange rate as the black market flourished, with exchange rates varying from city to city. Some of the main factors are soaring inflation, lack of economic diversification and foreign investment, political instability, wars, and sanctions.

“On the positive side, however, the weaker dollar could be a boost for American exporters,” the Morgan Stanley analysts wrote. Assets could be less compelling for foreign investors” and “import prices could rise, putting pressure on inflation,” they added. The index rises when the dollar’s value increases and declines when its value drops against those currencies. The value of the U.S. dollar plunged Tuesday, after President Donald Trump said he was not concerned about the currency’s recent drop.