The World's Most Devalued Currencies: A 2025 Outlook

Have you ever stopped to think about what it means when a currency loses 90% of its value? While here in Brazil we face challenges with the real quoted at around R$ 5.44 (September 2025 data), there are nations where the reality is exponentially more challenging. The Brazilian real, in fact, ended 2024 as the worst-performing among the main currencies, with a decline of 21.52%. However, this situation pales in comparison to what happens in other parts of the globe, where entire cities deal with currencies that have lost almost all their purchasing power.

The arrival of 2025 brought a turbulent international scenario: persistent inflation across several continents, widespread political instability, and successive economic crises transformed certain currencies into living symbols of monetary fragility. Understanding why this happens and identifying these currencies is essential not only out of financial curiosity but to comprehend macroeconomic dynamics that affect billions of people.

The Mechanisms Behind Monetary Collapse

There is no accident when it comes to a weak currency. There is always a set of circumstances that converge to create exchange rate chaos. The main elements include:

Uncontrolled inflation and hyperinflation: While Brazil manages inflation around 5% in 2025, some countries face scenarios where prices double monthly. This process, known as hyperinflation, literally erodes the purchasing power of populations, wiping out economies in a matter of weeks.

Political crises and fragile institutions: Coups, internal conflicts, transitional governments. Without clear legal security, domestic and foreign investors seek refuge in external assets, draining local reserves. The currency becomes paper without backing.

Economic isolation and international sanctions: When the global community restricts a nation’s access to the financial system, it eliminates the ability to conduct international trade. The local currency becomes practically useless for cross-border transactions.

Insufficient foreign exchange reserves: A Central Bank without enough dollars or gold cannot defend its currency. It’s like an army without ammunition facing an attack: it will inevitably cede ground.

Mass capital exodus: When even local residents prefer to hide dollars rather than hold their own national currency, red flags flash everywhere. This indicates a deep loss of institutional confidence.

The 10 Most Devalued Currencies Currently

1. Lebanese Pound (LBP)

Exchange rate: 1 million LBP is approximately R$ 61.00 (September 2025)

The history of this currency is an extreme case of monetary collapse. Officially, the exchange rate should be 1,507.5 pounds per dollar, but this parity has been fiction since the 2020 crisis. In practice, in the streets of Beirut, more than 90,000 pounds are required for a single US dollar. Banks have implemented severe withdrawal restrictions, and local commerce has shifted to dollar transactions. Taxi drivers, restaurants, and small merchants reject their own country’s official currency.

2. Iranian Rial (IRR)

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

International trade restrictions have rendered the rial virtually useless. With just R$ 100, a person becomes a “millionaire” in paper currency. The government tries to artificially control the exchange rate, but multiple parallel rates exist simultaneously. An interesting phenomenon has emerged: young Iranians have migrated to cryptocurrencies like Bitcoin and Ethereum, treating them as a more reliable store of value than the national currency. For many, acquiring digital assets has become a strategy for wealth preservation.

3. Vietnamese Dong (VND)

Exchange rate: Approximately 25,000 VND per dollar

Unlike the previous cases, Vietnam has an expanding economy and positive macroeconomic indicators. Still, the dong remains historically weak due to deliberate monetary policy choices. ATM withdrawals generate stacks of notes as voluminous as scenes from action movies. For tourists, it’s excellent: US$ 50 provides days of apparent luxury. However, for Vietnamese, it means expensive imports and limited international purchasing power.

4. Laotian Kip (LAK)

Exchange rate: About 21,000 LAK per dollar

Laos faces a small economy dynamic, highly dependent on imports and plagued by ongoing inflation. The kip is so weak that border merchants with Thailand often refuse it, preferring to accept Thai baht.

5. Indonesian Rupiah (IDR)

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 consistently been among the weakest worldwide. Brazilians find incredible opportunities in Bali: with R$ 200 daily, they live like millionaires.

6. Uzbek Sum (UZS)

Exchange rate: About 12,800 UZS per dollar

Uzbekistan has recently implemented significant economic reforms, but the sum still bears the weight of decades of a closed economy. Efforts to attract foreign investment continue, but the currency remains weak.

7. Guinean Franc (GNF)

Exchange rate: Approximately 8,600 GNF per dollar

Guinea is a classic paradox: abundant natural resources (gold and bauxite), but chronic political instability and corruption prevent these riches from translating into a strong currency. Economic potential does not translate into exchange rate strength.

8. Paraguayan Guarani (PYG)

Exchange rate: About 7.42 PYG per real

Our South American neighbor maintains a relatively stable economy, but the guarani carries a historical tradition of fragility. For Brazilians, this means continuing to enjoy advantages in Ciudad del Este.

9. Malagasy Ariary (MGA)

Exchange rate: Approximately 4,500 MGA per dollar

Madagascar faces the reality of one of the poorest nations on the planet. The ariary reflects this condition: imports reach prohibitive prices, and the population lacks significant international purchasing power.

10. Burundian Franc (BIF)

Exchange rate: About 550.06 BIF per real

Closing the list, we have a currency so weak that significant transactions require literally carrying paper money in bags. Burundi’s perpetual political instability directly mirrors its national currency.

Lessons for Investors and Global Observers

This panorama of the most devalued currencies in the world in 2025 goes beyond simple financial curiosity. It depicts snapshots of economies under pressure, where institutional trust has evaporated and legal security has disappeared.

For Brazilians monitoring international markets, clear lessons can be drawn:

Fragile economies present immense risks. Cheap currencies may seduce as investment opportunities, but the underlying reality often involves deep crises and high systemic risks.

Travel and tourism offer tangible benefits. Destinations with devalued currencies become financially attractive for visitors holding dollars, euros, or even reais.

Macroeconomic understanding deepens. Observing how currencies spiral downward concretely illustrates effects of inflation, corruption, instability, and lack of governance. These are not abstract numbers but realities that impact lives.

Paying attention to these factors means understanding why trust, stability, and institutional quality determine economic trajectories. For investors, it means recognizing that geographic diversification and investing in assets that transcend borders offer protection against local devaluations.

The transformation of money into power or fragility follows identifiable patterns. The better these mechanisms are understood, the better one is prepared to navigate them.