Top 10 Weakest Currencies in the World (2025)

Key takeaways

• Some currencies have significantly low values compared to stronger global currencies like the USD, EUR, or GBP.

• Economic instability, inflation, and political factors often contribute to a currency's weakness.

• Understanding weak currencies can help travelers, investors, and businesses make informed decisions about foreign exchange.

When sending money across borders, exchange rates can tell surprising stories about global economies.  While some currencies seem to flourish and hold stable positions in the global market, others struggle with devaluation, inflation, and economic instability.

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.

What makes a currency weak?

What does it mean when we refer to a currency as "weak"? Simply put, it reflects the current exchange rate position and purchasing power of a currency in global markets. Currency values constantly fluctuate based on various economic factors, and today's exchange rates don't necessarily predict tomorrow's performance - many currencies have shown remarkable recoveries over time.

Let's explore the key factors that can influence a currency's market position:

• Economic Indicators:  When a country faces high inflation or economic uncertainty, its currency's purchasing power may decrease. 

• Foreign Reserves: Lower reserves of foreign currency can affect a nation's ability to maintain currency stability. 

• Trade Balance: If a country tends to import more goods than it exports, it can create pressure on the local currency. 

Here are the world's 10 weakest-performing currencies against the US dollar, and what's behind their current positions.

Top 10 weakest currencies in the world

Weakest currencies by exchange rate

(Up to date as of February 6th, 2025. Exchange rates fluctuate, so check Xe.com for the most up-to-date rates.)

1. Lebanese Pound (LBP) - The weakest currency

Leading the list of currencies facing significant challenges, the Lebanese Pound reflects ongoing economic pressures in the international market. Lebanon's banking crisis and monetary policy changes have created substantial challenges for currency stability. 

The currency's position stems from:

• Widespread financial system collapse

• Ongoing political uncertainty

• Strict banking restrictions

• Rapid currency devaluation.

2. Iranian Rial (IRR) 

The Iranian Rial's weakness stems from:

• International economic sanctions

• High inflation rates

• Limited foreign investment opportunities

• Restricted international trade access

3. Vietnamese Dong (VND)

While Vietnam's economy shows promising growth, its currency faces ongoing issues from:

• Historical devaluation patterns

• Low international purchasing power

• Government stabilization efforts

• Controlled exchange rate policies

4. Sierra Leonean Leone (SLL)

The Leone's position is due to the following:

• Years of political instability and weak economic infrastructure that led to a devaluation of the Leone

• Limited industrial output and heavy reliance on imports make the currency vulnerable to inflation

5. Laotian Kip (LAK)

Laos has a developing economy, but still struggles from:

• High inflation rates  and trade imbalances

• Limited foreign currency reserves

• Trade imbalances that impact stability 

6. Indonesian Rupiah (IDR)

Although Indonesia has a relatively stable economy, the currency is weak due to:

• Past financial crises, such as the Asian Financial Crisis¹

• Periods of high inflation

• Reliance on foreign investment and U.S dollar strength 

7. Uzbekistani Som (UZS)

Uzbekistan's currency maintains a complex position in international markets, shaped by:

• The transition from a command economy to a market economy caused fluctuations in its currency value.

• A heavy reliance on remittances from Uzbek workers abroad

• The country’s reliance on foreign goods, machinery and technology 

8. Guinean Franc (GNF)

Economic fundamentals impact the Guinean Franc's position:

• Heavy reliance on commodity exports

• Persistent inflation challenges, along with economic mismanagement 

• Low foreign exchange reserves 

9. Paraguayan Guarani (PYG)

Paraguay's currency faces several structural challenges:

• Inflation and low foreign investment contribute to its struggles

• A heavily reliant economy on agriculture commodity exports like soybeans and beef

• A relatively small foreign currency reserve

10. Malagasy Ariary (MGA)

Madagascar's currency struggles stem from multiple factors:

• 2009² marked a significant decline in value

• Natural disasters impact economic stability

• Political uncertainty affects market confidence

• Heavy dependence on vanilla exports creates price sensitivity

FAQs about weak currencies

After learning about these currencies, you might have some burning questions about why some currencies fall where they do in the rankings. Let's clear up some common questions about the world's weakest currencies.

1. Do weak currencies mean a country is poor?

A weak currency doesn't always reflect economic strength. Japan serves as a prime example - despite a high exchange rate with the USD (1 USD ≈ 150 JPY), it maintains one of the world's strongest economies. 

2. What are the weakest currency pairs?

Some of the weakest currency pairs are:

• NZD/CHF (New Zealand Dollar / Swiss Franc)

• AUD/CHF (Australian Dollar/ Swiss Franc)

• EUR/CHF (European Euro/ Swiss Franc) 

3. Which currencies have the weakest exchange rates against the USD?

The Lebanese Pound (LBP) currently holds the weakest exchange rate against the US dollar.

4. What is the lowest historical exchange rate ever recorded?

Zimbabwe’s hyperinflation crisis³ in 2008 saw the Zimbabwean Dollar (ZWD) reach an unimaginable exchange rate, with a single U.S. dollar equalling trillions of Zimbabwean dollars. 

5. How do I know if a currency is weak?

Watch for these key warning signs:

• Rising inflation rates

• Declining foreign currency reserves

• Political or economic uncertainty

• Trade imbalances

• Banking system instability

6. Has any weak currency ever made a big comeback?

Yes, in the 1990s, Poland transitioned from a socialist to a market-based economy⁴. This shift initially led to severe economic hardship, hyperinflation, and a loss of confidence in the Polish Zloty.

However, through strong financial reforms, privatization of state-owned enterprises, and integration with the European Union, Poland was able to stabilize its economy and strengthen its currency. By the early 2000s, the Zloty had recovered significantly, attracting foreign investment and improving the standard of living for Polish citizens. 

7. Has any currency ever been completely abandoned?

Yes, several countries have replaced their currencies when facing severe economic challenges:

• Zimbabwe adopted foreign currencies after its hyperinflation crisis

• Ecuador⁵ switched to the US dollar in 2000

• El Salvador⁶ transitioned to the US dollar in 2001⁵

8. Which currency had the highest-ever denomination?

Zimbabwe issued a 100 trillion-dollar note, making it the highest denomination in history.

9. What’s the most unusual reason a currency has weakened?

While natural disasters and political changes often affect currencies, Venezuela's bolivar faced a unique challenge in 2020. A failed coup attempt⁷, remarkably funded through social media crowdfunding and involving foreign mercenaries, added unexpected pressure to an already struggling currency.

10. What is the cheapest currency to be a millionaire in?

The Iranian Rial currently offers the lowest threshold to reach millionaire status in raw numbers.

Why choose Xe for international money transfer 

Understanding weak currencies helps you navigate international money transfers with confidence. The global currency landscape constantly evolves, making it crucial to work with a reliable transfer service that offers competitive rates and secure transactions.

When dealing with countries that have weaker currencies, choose a reliable money transfer service like Xe that offers:

• Competitive Exchange Rates: Get bank-beating rates for maximum value on every transfer.

• Clear, Upfront Fees: See all costs before you send, with no surprise fees or send fees.

• Fast, Secure Service: Send money to over 200 countries with industry-leading security protection.

• Real-Time Tracking: Follow your transfer's journey from start to finish.

• Global Coverage: Access more than 130 currencies for your international transfers.

Ready to send money abroad? Visit Xe.com to access competitive rates and send money to over 200 countries worldwide.

Citations

¹ Federal Reserve History - Asian Financial Crisis (2013)  

² Relief Web - Madagascar Currency Decline (2009) 

³ Milken Review - Zimbabwe Currency (2024)

⁴ IMF E Library - Poland Market Economy (2021)  

⁵ Latam Dialogue - Ecuador U.S. Dollar (2020)

⁶ IMF - El Salvador (2011) 

⁷ BBC - Bay of Piglets (2020)  

**The information from these sources were taken on February 6. 

The content within this blog post is not intended for use as financial advice. This content is for informational purposes only.