Let’s take a closer look at the ten currencies currently lagging behind the Indian Rupee, shedding light on the economic realities of each nation. Her career spans writing on personal finance with expertise in the cryptocurrency market. She’s fond of venturing into the unknown and counts finance, entertainment, and fashion as her top interest areas. The president’s policies, including immigration policies, have negatively impacted the country’s economy, which still affects the country’s development. However, the last few years witnessed an improvement in value but not more than a 5% devaluation. There are floating currencies, which means their values vary depending on demand and supply, and some currencies are pegged, meaning their value is stable at an agreed-upon rate.
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This is likely due to factors such as high unemployment, high inflation, low economic growth and issues with corruption. Below, we’ll run through the list of the 10 weakest currencies in the world in 2025. The lack of stability in the government will harm the country’s economic performance, and investors will not profit from it. The investment might increase the domestic currency value and boost foreign capital. The higher the interest rate, the more the currency’s value will decrease.
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High inflation, corruption, a high unemployment rate, and a rise in poverty resulted from a devastating economic collapse. Each of these elements has had a detrimental effect on the currency. Currently, the Iranian Rial is considered the world’s least valuable currency. The currency’s weakness stems from inflation, a lack of investor confidence, and poor fiscal management.
Nigeria’s heavy reliance on oil exports makes its economy vulnerable to fluctuations in global oil prices. Madagascar’s dependence on agriculture, political instability, and underdeveloped infrastructure contribute to the Ariary’s low value. Paraguay’s small, agriculture-based economy and limited diversification contribute to its currency’s low value. The currency is symbolized as “Rp” and is subdivided into 100 sen, though due to inflation, denominations in sen are no longer in practical use.
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Given Indonesia is heavily dependent on the export market, the fall of the cost of the commodities has further devalued its currency value. For instance, buying Indian rupees with Vietnamese dong or Indian rupees with Iraqi dinar. As a result, currencies are always priced relatively to another currency which is known as the exchange rate. The Guarani is a weak currency primarily due to Paraguay’s small, agriculture-based economy. Dependency on soybean exports and fluctuations in global commodity prices impact its stability.
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- The banking sector’s collapse and corruption have further destroyed trust in the national currency.
- The Iranian rial tops the list of the cheapest currencies in the world.
- Laos has a very small economy and depends a lot on foreign help and investment.
- The president’s policies, including immigration policies, have negatively impacted the country’s economy, which still affects the country’s development.
- The Kazakhstani Tenge (KZT) has experienced significant fluctuations, placing it among the world’s weakest currencies in 2025.
Sierra Leone is heavily dependent on mineral exports, particularly diamonds and iron ore, making it vulnerable to global price fluctuations. The lack of economic diversification, high inflation, and a narrow tax base have all contributed to the currency’s persistent weakness. This policy, while boosting manufacturing competitiveness globally, keeps the Dong undervalued.
The currency is weak due to the economy’s high degree of unofficial dollarization, limiting demand for the Riel. Below is the ranking table of the top 25 weakest currencies in the world against the US Dollar (USD) as of 19 November 2025. Iraq’s Dinar is weighed down by war, sanctions, and political instability. Although oil is a strong economic driver, the currency has yet to recover its past strength. Uzbekistan is working on economic reforms, but its currency still struggles due to inflation and limited diversification. It’s also important to note that exchange rates differ depending on where you exchange money, banks, forex agencies, and online platforms often add their own margins.
- Stagnation in economic development due to corruption is a problem in the DRC, which severely inhibits foreign investment and interest in the currency.
- Such knowledge not only informs financial decisions but also fosters a deeper comprehension of global economic interdependencies.
- Uganda’s high dependence on agricultural exports such as coffee has left its economy in a vulnerable state.
- This situation worsened with the Iran-Iraq War and economic sanctions imposed due to Iran’s nuclear activities.
This infrastructure project could bolster trade and tourism, injecting much-needed capital into the economy. It is relatively stronger than most of the world’s weakest currencies but relatively weaker compared to major global currencies like the USD, Euro, and Pound. Its strength has to be ranked better than those countries whose exchange rate is much lower than Indian Rupee such as Vietnam, Venezuela, and Iran. Let’s explore what causes currencies to lose value and take a closer look at the world’s weakest currencies today. From economic pressures to inflation challenges, we’ll uncover the factors that influence currency strength and what this means for your international money transfers.
Although the weakest currency in the world to inr Vietnamese economy has grown significantly in recent decades, the Dong remains heavily managed and is kept weak to promote exports. A severe foreign debt crisis led to a sovereign default, coupled with high inflation and import dependence. Heavy reliance on oil and gas exports makes the currency highly vulnerable to global commodity price swings. Chronic hyperinflation, a history of sovereign debt defaults, and economic mismanagement. Decades of war and sanctions have hindered economic recovery, despite the country’s large oil reserves.
The Burundian franc remains a weak currency, and the country heavily relies on humanitarian assistance, with external debt stacking up into the billions. The landlocked country of Burundi is kept behind economically due to the fact that it is almost entirely agricultural, with barely any industrialisation. Food production is strong in the country, but civil unrest and overpopulation have contributed in recent years to a contraction of the subsistence economy by 25%.
Paraguay’s economy is highly reliant on agriculture, especially soy and cotton exports, which leaves the Guarani vulnerable to price fluctuations in global markets. Additionally, high prices, poverty, and unemployment contribute to its ongoing weakness. The currency has been weak due to years of political problems, corruption, and slow growth. Even though Guinea has lots of valuable natural resources, like minerals, the country hasn’t been able to develop other industries.
We’ve compiled data on the top 25 global currencies with guides to each. You can be alerted if anything changes using the Wise exchange rate alerts tool. The second pricing method is a fixed rate, also known as a pegged rate. This is determined by the government through its central bank, and is set against another major global currency (such as USD or EUR, for example).
The Vietnamese Dong (VND)
The Iranian Rial has struggled due to longstanding international sanctions and economic mismanagement. Its low value limits foreign trade and investment, making it one of the world’s weakest currencies. The reliance on oil exports has heightened the issue, especially with ever-fluctuating global oil prices. Persistent inflation in the nation has reduced the Rial’s purchasing power, affecting everyday life for citizens. Following the end of the Islamic Revolution in 1979, foreign investors began withdrawing from Iran, significantly impacting the country’s economy. Additionally, Iran’s nuclear program and the Iran-Iraq war contributed to severe financial strain and heightened political instability across the nation.
