The 10 Worst Performing Currencies in the World: A Map of Global Economic Fragility in 2025

When you receive your salary and realize that your purchasing power is no longer the same the next day, it signals a much bigger problem. While Brazil faces the devaluation of the real against the dollar (exchange rate close to R$ 5.44 in September 2025), there are nations where the population lives daily with currencies that have lost almost all relevance. The Brazilian real, in fact, ended 2024 as the worst currency among the world’s major economies, with a decline of 21.52%. However, this devaluation seems insignificant compared to the scenario faced by some developing nations.

Why Do Currencies Collapse? Factors Behind Devaluation

The fragility of a currency is never coincidental. It always results from a convergence of crises that completely destroy investor and public confidence. The main factors are:

Rampant inflation and hyperinflation: When prices double monthly, savings and wages simply evaporate. While Brazil worries about inflation around 5% in 2025, some countries face price increases that multiply exponentially.

Structural political instability: Coups, internal conflicts, and governments that change frequently dismantle legal security. Without trust in institutions, investors abandon the country and the currency loses its fundamental economic function.

Economic isolation through sanctions: When the international community restricts a country’s access to the global financial system, the local currency becomes virtually useless for international transactions. This reality has intensified with recent years’ foreign policy measures.

Insufficient international reserves: If the Central Bank lacks enough dollars and gold to support the currency, collapse is imminent. Without these defense assets, devaluation progresses unimpeded.

Massive capital flight: When even locals prefer to store foreign currencies informally rather than keep their wealth in the national currency, you are facing a deep trust crisis.

The 10 Most Devalued Currencies in the World in 2025

1. Lebanese Pound (LBP)

Exchange rate: 1 million LBP ≈ R$ 61.00

Lebanon holds the uncontested top spot. Officially, the rate should be 1,507.5 pounds per dollar, but since the 2020 crisis, this rate doesn’t exist in practice. On the black market, more than 90,000 pounds are needed to get 1 dollar. Banks strictly limit withdrawals, and businesses reject the local pound, accepting only dollars. The situation is so severe that even taxi drivers in Beirut demand payment in foreign currency.

2. Iranian Rial (IRR)

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

International sanctions have completely transformed the rial into a symbol of instability. With R$ 100, anyone becomes a “millionaire” in rials. The government tries to control exchange rates, but street reality reveals multiple parallel rates. Interestingly, young Iranians are migrating en masse to cryptocurrencies like Bitcoin and Ethereum, which have become more reliable stores of value than the national currency itself.

3. Vietnamese Dong (VND)

Exchange rate: About 25,000 VND per dollar

Vietnam presents a different scenario. Despite a growing economy, the dong remains historically weak due to monetary policy choices. For tourists, it’s a playful experience: with US$ 50, you can withdraw an impressive amount of banknotes. However, for Vietnamese, the fragility of the dong makes imports more expensive and limits international purchasing power.

4. Lao Kip (LAK)

Exchange rate: About 21,000 LAK per dollar

Laos faces a challenging economic situation: a reduced domestic market, dependence on imports, and persistent inflation. The kip is so weak that traders at the border with Thailand prefer to receive Thai baht in their transactions.

5. Indonesian Rupiah (IDR)

Exchange rate: About 15,500 IDR per dollar

Indonesia, although the largest economy in Southeast Asia, cannot strengthen its currency. Historically, since 1998, the rupiah has been among the weakest globally. For Brazilians traveling to Bali, this makes it an extremely affordable destination.

6. Uzbek Sum (UZS)

Exchange rate: About 12,800 UZS per dollar

Uzbekistan has recently implemented significant economic reforms, but the sum still carries the weight of decades with a closed economy. Despite efforts to attract foreign investment, the currency remains weak and devalued.

7. Guinean Franc (GNF)

Exchange rate: About 8,600 GNF per dollar

Guinea is rich in natural resources like gold and bauxite but faces chronic political instability and corruption that prevent converting these riches into strong currency. It’s a classic example of unfulfilled economic potential.

8. Paraguayan Guarani (PYG)

Exchange rate: About 7.42 PYG per real

The neighboring Paraguay has a relatively stable economy, but the guarani is traditionally weak. For Brazilians, this keeps Ciudad del Este as a privileged commercial destination in the region.

9. Malagasy Ariary (MGA)

Exchange rate: About 4,500 MGA per dollar

Madagascar, among the poorest nations on the planet, reflects its condition through the ariary. Imports become prohibitively expensive, and the population has virtually no international purchasing power.

10. Burundian Franc (BIF)

Exchange rate: About 550.06 BIF per real

Closing the list, Burundi has a currency so depreciated that high-volume transactions require transporting large quantities of banknotes. The country’s ongoing political instability directly impacts the fragility of its currency.

What Can Be Learned From This Reality

What is the most devalued currency in the world? The answer is not just an economic fact but a clear diagnosis of how politics, trust, and stability are deeply interconnected.

For Brazilian investors, some conclusions emerge:

Fragile economies present immense risks. Devalued currencies may seem like superficial opportunities, but the truth is that most of these countries experience deep structural crises that hinder any secure transaction.

Tourism and consumption opportunities exist. Destinations with devalued currencies offer financial advantages for travelers arriving with dollars, euros, or even reais in some cases.

Understanding macroeconomics through real examples. Watching currencies collapse provides practical lessons on the effects of inflation, corruption, and political instability in people’s daily lives.

Final Reflection

Monitoring how currencies weaken globally serves as an educational tool for any investor. It demonstrates the critical importance of institutional trust, political stability, and good governance to sustain a healthy economy. These lessons go beyond simple statistics and touch on the human reality of millions who see their purchasing power evaporate daily.

For Brazil, keeping an eye on this global dynamic offers valuable perspectives on how to protect and grow wealth in uncertain environments. Continuous learning about economic dynamics and global markets remains a fundamental strategy for any investor aiming to secure their financial future.