Devalued Currencies That Dominate the Global Scene in 2025

When you follow financial markets for a while, it becomes clear that no currency becomes weak by chance. What you are about to read is much more than a simple ranking of bad exchange rates – it’s a map of economies facing their worst moments.

Recently, a colleague returned from a trip to Lebanon bringing an impressive image: a huge bundle of banknotes that looked like it came out of a board game. It was 50,000 Lebanese pounds, equivalent to just R$ 3.00. At that moment, I realized that while many people here complain about the dollar quoted at R$ 5.44 (as recorded in September 2025), entire populations are living with currencies that have lost almost all economic relevance.

Brazil, by the way, finished 2024 as the worst currency among the main ones, with a decline of 21.52%. But this is irrelevant compared to what you will discover in this article.

Factors That Destroy Any Currency

Before exploring the worst devalued currencies on the planet, it’s essential to understand what really causes this currency collapse. It’s never an isolated factor, always a perfect storm:

Uncontrolled inflation: Here in Brazil, we talk about 5% per year and already have concerns. Now imagine economies where prices rise exponentially month by month – that’s hyperinflation, and it annihilates both savings and wages.

Structural political chaos: Coups, internal conflicts, and constant government changes destroy institutional trust. Without legal security, investors disappear and the currency becomes worthless paper.

Isolation from the global financial system: When economic sanctions close a country’s doors, it loses the ability to operate in international trade. The local currency becomes practically useless for external transactions.

Insufficient reserve accumulation: When the Central Bank doesn’t have enough dollars to support the currency, collapse is inevitable. The situation worsens when even gold and other assets cease to be sufficient.

Capital exodus: When even local citizens prefer to store foreign currency informally rather than keep their own currency, you know the situation has reached a critical point.

The 10 Most Devalued Currencies Suffering in 2025

1. Lebanese Pound: The Symbol of Currency Catastrophe

The undisputed champion. Officially, the exchange rate would be 1,507.5 pounds per dollar, but since the 2020 crisis, this number has no relevance in the real world. On the black market, you need more than 90,000 pounds to get 1 dollar.

The situation has become so severe that banks have implemented strict withdrawal limits and many businesses only accept US dollars. Uber drivers in Beirut demand payment in foreign currency because no one wants to accumulate Lebanese pounds.

Current rate: 1 million LBP is approximately R$ 61.00

2. Iranian Rial: When Sanctions Destroy the Currency

International sanctions turned the rial into a symbol of a collapsed economy. With R$ 100, you become a “millionaire” in rials – but this wealth is completely fictitious.

The government tries to control the exchange officially, but multiple parallel rates operate on the streets. The most interesting phenomenon is that the younger population is migrating en masse to cryptocurrencies, seeing Bitcoin and Ethereum as infinitely more reliable stores of value than their national currency.

Current rate: 1 real is approximately 7,751.94 rials

3. Vietnamese Dong: Structural Weakness

Vietnam shows robust economic growth, but the dong remains historically weak due to local monetary policy. Withdrawing 1 million dong results in a bundle that looks like it’s from a science fiction series.

For tourists, it’s excellent – US$ 50 buys a luxurious experience. For Vietnamese, it means imports become expensive and international purchasing power is severely limited.

Current rate: Approximately 25,000 VND per dollar

4. Lao Kip: Dependence and Constant Inflation

Laos faces a harmful combination: a small economy, critical dependence on imports, and persistent inflation. The kip is so weak that traders at the Thai border prefer to receive Thai baht.

Current rate: About 21,000 LAK per dollar

5. Indonesian Rupiah: Economic Strength, Weak Currency

Fascinating paradox: Indonesia is Southeast Asia’s largest economy, but the rupiah has never managed to strengthen. Since 1998, it has permanently been among the weakest currencies globally.

For Brazilians traveling to Bali, this means extremely low living costs. With R$ 200 daily, it’s possible to live comfortably.

Current rate: Approximately 15,500 IDR per dollar

6. Uzbek Sum: Reflection of an Isolated Economy

Uzbekistan recently implemented significant economic reforms, but the sum still carries the weight of decades of economic isolation. The currency remains devalued despite efforts to attract foreign investment.

Current rate: About 12,800 UZS per dollar

7. Guinean Franc: Natural Wealth, Political Instability

Guinea has abundant gold and bauxite, but the currency remains weak. Systematic corruption and political instability prevent mineral wealth from converting into strong currency or real economic development.

Current rate: Approximately 8,600 GNF per dollar

8. Paraguayan Guarani: Neighborhood Doesn’t Guarantee Strength

Our Latin American neighbor maintains a relatively stable economy, but the guarani is traditionally weak. For Brazilians, this means continuing to enjoy Ciudad del Este as an extraordinarily affordable shopping destination.

Current rate: About 7.42 PYG per real

9. Malagasy Ariary: Poverty Reflected in Currency

Madagascar is among the poorest nations globally, and the ariary reflects this brutal reality. Imports become prohibitively expensive and the population almost does not participate in international trade.

Current rate: Approximately 4,500 MGA per dollar

10. Burundian Franc: Currency So Weak It Requires Transport

Completing the ranking is a currency so depreciated that considerable transactions require transporting entire bags of notes. Burundi’s chronic political instability manifests directly in the weakening of the national currency.

Current rate: About 550.06 BIF per R$ 1.00

What This Means for Brazilian Investors

Devalued currencies offer valuable economic lessons. Fragile economies may initially seem like opportunities, but they pose enormous risks. Most of these countries face structural crises that go far beyond normal exchange rate fluctuations.

At the same time, destinations with devalued currencies can offer real advantages in tourism and consumption – those traveling with reais, dollars, or euros find amplified purchasing power.

Tracking how currencies collapse provides practical macroeconomic education: you understand how inflation, corruption, and political instability directly impact people’s daily lives.

Monetary stability is a direct reflection of governance quality, institutional trust, and economic solidity. Understanding these patterns is essential for anyone who wants to protect their wealth in an increasingly volatile world.