Most Devalued Currencies in the World in 2025: Understand the Numbers Behind Economic Fragility

Why Do Some Currencies Collapse While Others Strengthen?

In 2025, the global economic landscape reveals a recurring phenomenon: while some nations keep their currencies stable, others face currency collapses that turn money into nearly worthless paper. The Brazilian real, which ended 2024 as the worst-performing among the main currencies, depreciated by 21.52% — a significant drop. However, this figure pales in comparison to the devastating scenarios in other economies.

The fragility of a currency never results from chance. It arises from a combination of structural factors that undermine economic confidence:

Uncontrolled inflation: While Brazil worries about rates around 5% in 2025, some nations experience scenarios where prices double monthly. This phenomenon, known as hyperinflation, rapidly erodes savings and wages.

Persistent political instability: Coups, internal conflicts, and frequent government changes scare off foreign investors and erode the credibility of the local currency.

International economic sanctions: When the international community imposes trade blockades, the country loses access to the global financial system, rendering its currency practically useless for international transactions.

Insufficient foreign reserves: Without enough dollars in the vault, central banks lose the ability to defend their currencies, leading to abrupt collapses.

Capital exodus: When even local residents prefer to accumulate foreign currency informally instead of the domestic currency, the situation becomes terminal.

The 10 Most Devalued Currencies in the World Currently

1. Lebanese Pound (LBP) - The Champion of Collapse

Exchange rate: 1 million LBP ≈ R$ 61.00

Lebanon leads the world ranking of destroyed currencies. Officially, the exchange rate should be 1,507.5 pounds per dollar, but this rate exists only on paper. In practice, more than 90,000 pounds circulate for each dollar, reflecting the chaotic reality. Financial institutions limit withdrawals, merchants reject the local currency, and ride-share drivers demand payment in dollars. Meanwhile, the Lebanese population faces virtually zero purchasing power.

2. Iranian Rial (IRR) - Sanctions and Monetary Collapse

Exchange rate: 1 Brazilian real = 7,751.94 Iranian rials

American sanctions turned the rial into a symbol of economic isolation. With just R$ 100, it’s possible to accumulate millions of rials — an absurdity illustrating the magnitude of the collapse. The government tries to control the exchange rate through multiple official rates, but the reality on the streets shows a very different scenario. Interestingly, many Iranians have migrated to cryptocurrencies like Bitcoin and Ethereum, which serve as alternative stores of value when the national currency loses credibility.

3. Vietnamese Dong (VND) - Historical Weakness in a Dynamic Economy

Exchange rate: Approximately 25,000 VND per dollar

Vietnam presents a paradox: an economy growing rapidly, but with a historically weak currency. The dong remains devalued not due to economic crisis but because of long-term monetary policy choices. ATM withdrawals generate stacks of notes that look like millions — a humorous situation for tourists who feel billionaires, but challenging for Vietnamese importing goods at exponential costs.

4. Laotian Kip (LAK) - Small Economy, Expensive Imports

Exchange rate: About 21,000 LAK per dollar

Laos faces structural challenges: a small domestic market, dependence on imports, and constant inflationary pressure. The kip has become so weak that at the border with Thailand, merchants prefer transacting in Thai baht, discouraging the use of the local currency.

5. Indonesian Rupiah (IDR) - Fragility in Southeast Asia’s Largest Economy

Exchange rate: Approximately 15,500 IDR per dollar

Despite being Southeast Asia’s largest economy, Indonesia has never managed to strengthen its currency. Since 1998, the rupiah has been among the most depreciated globally. For Brazilian tourists, this means surprisingly affordable accommodation and food in Bali.

6. Uzbek Sum (UZS) - Legacy of Economic Isolation

Exchange rate: About 12,800 UZS per dollar

Uzbekistan has implemented recent economic reforms, but the sum reflects decades of a closed economy. Although the country seeks to attract foreign investment, the currency remains structurally weak.

7. Guinean Franc (GNF) - Resource Wealth, Monetary Poverty

Exchange rate: About 8,600 GNF per dollar

Guinea has abundant gold and bauxite, but political instability and systemic corruption prevent this natural wealth from translating into monetary strength.

8. Paraguayan Guarani (PYG) - Neighbor with a Traditional Economy

Exchange rate: About 7.42 PYG per real

Paraguay maintains a relatively balanced economy, but the guarani remains traditionally fragile. For Brazilian consumers, Ciudad del Este continues to be a cost-effective shopping destination.

9. Malagasy Ariary (MGA) - Structural Poverty Reflected in Currency

Exchange rate: About 4,500 MGA per dollar

Madagascar, one of the poorest nations on the planet, has a currency that reflects this reality. Imports become an inaccessible luxury, and the population lacks international purchasing power.

10. Burundian Franc (BIF) - Political Instability and Monetary Collapse

Exchange rate: About 550.06 BIF per real

Closing the ranking, the Burundian franc is so devalued that larger transactions require transporting significant volumes of cash. Burundi’s chronic political crisis manifests directly in the collapse of its currency.

What Do These Numbers Reveal About the Global Economy

The most devalued currencies in the world are not just financial curiosities. They serve as thermometers of global economic health and indicators of how policy, institutional trust, and economic stability interconnect.

For Brazilian investors and market observers, studying these currencies offers practical lessons:

First: Fragile economies present immense risks. Devalued currencies may seem like speculative opportunities, but the underlying reality is deep crises affecting quality of life.

Second: Opportunity niches exist in tourism and consumption. Travel to destinations with depreciated currencies maximizes purchasing power when financed in real, dollar, or euro.

Third: The phenomenon provides a macroeconomically valuable lesson. Tracking monetary collapses reveals how inflation, corruption, sanctions, and political instability destroy economies in the real world, offering practical education on stability, governance, and institutional trust.

Understanding which currencies are most devalued in the world allows investors to identify patterns, recognize warning signs, and position themselves strategically in an increasingly volatile global scenario.