As we all know, money talks. However, we should say that certain types of money speak while others just whisper. Global finance is an uneven playing field, not all currencies stand on equal footing. Some are strong like steel, and some fade like an ice-cream in the blazing heat of summer.
So, which is the weakest currency in the world? The Lebanese Pound (LBP) holds this dubious title at present. The value is so low that 1 USD = ~ 89,500 LBP. To put that in perspective, you’d need a briefcase to carry $100 in Lebanese pounds, if you could find that many actual bills, that is.
A weak currency is not simply one with a large number of zeros after the decimal point. It has more to it. It includes inflation rates, political stability, monetary policy, and investor confidence. Given that, this time, we will discuss the weakest currencies in the world as of 2025. We will understand the economics behind them and its implications on the respective countries.
Top 10 weakest currencies in the world (2025)
Here are the top 10 weakest currencies in the world. If you are travelling to any of these countries don’t be surprised if your wallet starts to feel like a sack of potatoes.
Exchange rates are approximate and fluctuate daily. Data compiled from multiple financial sources as of July 2025.
What makes a currency weak?
Now, before we go on to list all the zeroes, we first have to clarify what exactly a weak currency is. The exchange rate tells you how much of one currency is required to purchase another currency. You can use any currency as a benchmark, although most are pegged to the U.S. dollar. But here’s the thing: just because a currency has a low exchange rate doesn’t necessarily mean that it’s a sign of weakness. It’s like clothes sizes or shoe sizes. Just because it’s a bigger number doesn’t mean that it’s bad.
Now, what are the causes of a weak currency? Well, here are some:
- Persistent inflation that eats away at value
- Short-term monetary policies that undermine long-term confidence
- Trade imbalances and shrinking foreign reserves
- Political instability that rattles investor trust
A weak currency can be a sign of underlying economic pressure. But if investors get nervous, capital can shift quickly and the exchange rate is one of the first places to show the strain.
Country spotlights: case studies behind the weakest currencies
Lebanon | A financial collapse without precedent
Want a lesson in how not to manage an economy? Lebanon is the one. Currently (as of mid-2025) the exchange rate is 1 USD = 89,500 LBP. The crisis started with a banking system that was effectively a government-supported Ponzi scheme. Banks offered high interest rates to lure deposits, then invested most of the money in a highly-indebted government. Once confidence was lost, the house of cards collapsed. On top of this, the 2019 protests and the Beirut port blast in 2020 pushed the economy into a terminal spin.
Now Lebanese are living in a strange economic environment where ATMs only dispense a few dollars at a time and many shops unofficially price goods in USD. A shadow economy runs in parallel to the official one. When trust in institutions fails, people find their own workarounds.
Iran | Sanctions, inflation, and isolation
Sanctions mean Iran is unable to access the international banking system, which in turn means its oil based economy can’t get value for its largest export. It’s like having a collection of Ferraris, but not the keys to unlock them. Iran has tried to circumvent sanctions by investing in cryptocurrencies and a barter system but nothing seems to be able to arrest the rial’s slide.
Inflation is normally in excess of 40%, so Iranians have bought gold, property and U.S. dollars as a way to protect whatever purchasing power they have. The rial is a classic example of the dangers of prolonged isolation.
Vietnam | Weak by design, not disaster
The exchange rate with the dollar is 26,000 VND. The thing is, though, it’s different from the last two. That isn’t a sign of trouble, but the product of deliberate policy.
Vietnam keeps the dong weak, so that the country can sell exports more cheaply, a process known as competitive devaluation. It’s an unconventional policy, but it’s helped Vietnam become a global manufacturing hotspot for companies looking to diversify out of China. It’s as if the entire country is on perpetual sale. Foreigners like the prices, and Vietnamese factories stay busy. Everybody wins. The government just needs to balance things to avoid the inflationary pitfalls that have crippled other nations on this list.
Laos | Trapped by debt and dependency
The Laotian kip now trades at around 21,800 LAK per USD. An inflation over 25% and a debt-to-GDP ratio over 125% put a lot of pressure on the currency. Much of the debt is owed to China for infrastructure projects that haven’t yet paid off economically.
Laos is a landlocked country with limited industrial capacity, and it has high import dependence. This situation leaves its currency exposed whenever commodity prices shift. If the trajectory of the Laotian kip shows us anything, it’s the deep economic vulnerabilities Laos is subject to.
Sierra Leone | A currency redefined, but still fragile
In 2022, Sierra Leone redenominated its currency, removing three zeros from the leone to simplify transactions. But even the new leone remains weak due to decades of disruption. Civil war, the Ebola outbreak, COVID-19, and swings in diamond prices.
This is an economy that’s faced shock after shock, and its recovery is very slow. The mining sector (especially diamonds) still dominates, which leaves the currency vulnerable to commodity price drops. Healthcare challenges and limited infrastructure add even more pressure, affecting the overall productivity and increasing fiscal strain.
Why some countries choose to keep their currency weak
As we discussed, some countries, Vietnam, for example, want a weak currency for excellent reasons. It’s like wanting to drive in the slow lane. It's counterintuitive. But it works.
When a currency is weak, it’s cheaper for other people to buy things from you. It’s like a perpetual discount. German cars may be nice, but if a Vietnamese motorcycle is 70% cheaper because of currency valuations, which do you think will sell more?
Countries like China famously kept their currency artificially weak for years. It was one of the reasons they could become the factory of the world. They were so successful that people accused them of “currency manipulation.” It’s like they were so good at a game that people cried foul. But this is a double-edged sword.
First, it makes imports very expensive. That means everything from oil to smartphones becomes more expensive for people inside the country. Second, prolonged currency weakness can lead to capital outflow, as even the rich and well-off within the country start to send their money out. If your own citizens do not have faith in your currency, it may be all the more difficult to persuade others to get in.
Does a weak currency mean a weak economy?
We already know that a weak currency is not a sign of an economy’s impending doom. It could simply be a result of different economic and historical realities. Indonesia and Vietnam are perhaps the two most prominent examples of countries with technically weak currencies and economically stable economies. Despite the need for calculators to work out the value of their currencies, both have grown steadily, lowered their poverty rates, and diversified their economies.
The answer is in purchasing power parity (PPP). It doesn’t matter how many zeroes there are after the currency symbol, it matters what those zeroes can buy. That is what matters. Just because a Vietnamese worker makes 10 million dong a month, doesn’t mean they are impoverished if that money buys them a good standard of living in the context of the Vietnamese economy.
So, how should we gauge a nation's economic strength? The answer is: look at the employment rate, rate of productivity, infrastructure investments, and standard of living. A nation with a "weak" currency that offers rising wages, improving infrastructure, and increasing opportunities is more prosperous than one with a "strong" currency and shuttered factories.
What are the consequences of a weak currency?
A devalued currency leads to a higher cost of living, as the price of essentials such as food, gasoline and electronics increases. The same thing happens to savings, and capital flight increases as money flows out of the country to be converted into a more solid currency. Eventually, foreign money supplants the local one, undermining the government’s ability to steer the economy.
Final thoughts
Currency weakness is more than numbers. We’ve learnt that it can both expose deep economic flaws but also reflect deliberate strategies for growth. Lebanon and Iran highlight how instability and isolation can erode value quickly, while Vietnam shows how weakness can fuel exports and development. Each case is unique.
These disparities shape the country’s trade, capital flows, and financial stability worldwide, which causes a wider ripple effect. In a global economy, no currency moves alone; each affects the rest. And behind every weak currency there are real people navigating inflation, opportunity, or uncertainty.
This article is for general information purposes only and is not intended to constitute legal, financial or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.
