The 10 Most Devalued Currencies in the World: A Map of Global Economic Fragility in 2025

When we look at international exchange rate data in 2025, one reality becomes unavoidable: while the Brazilian real ends the previous year with a depreciation of 21.52% (the worst among major currencies), there are nations where the population faces much more severe monetary deterioration scenarios. A simple walk through currency markets reveals stories of rampant inflation, entrenched political crises, and economic systems on the brink of collapse.

The phenomenon of the world’s most devalued currencies reflects much more than mere exchange rate fluctuations. It exposes the deep wounds of entire economies: from international sanctions to governments unable to maintain fiscal stability. For those seeking to understand global markets or planning international investments, this ranking offers practical lessons on how economic confidence evaporates.

The Pillars of Monetary devaluation

To understand why some currencies lose so much value, it is essential to analyze the mechanisms that cause this collapse:

Critical-level inflation: Countries experiencing monthly price increases in double digits are experiencing what economists call hyperinflation. While Brazil carefully monitors rates around 5% per year, in certain nations prices double monthly, eroding wages and savings almost instantly.

Persistent political instability: Coups, civil conflicts, and abrupt government changes destroy investor confidence. Without legal security, international capital flees, leaving only the local currency with no real value.

Economic isolation and sanctions: When the international community closes doors to a country, its currency loses functionality in global trade. The predictable result: a currency that cannot be converted internationally becomes just paper.

Depletion of foreign exchange reserves: A Central Bank without enough dollars cannot defend its currency. When international reserves disappear, the exchange rate collapse becomes inevitable.

Capital exodus: When citizens prefer to keep their savings in informal dollars rather than trust the national currency, the situation reaches its critical point. This capital flight accelerates devaluation.

The ranking of the 10 most devalued currencies in 2025

1. Lebanese Pound (LBP) – The Champion of collapse

Exchange rate: 1 million LBP = R$ 61.00

The Lebanese Pound is the extreme symbol of monetary devaluation. Officially, the rate should be 1,507.5 pounds per dollar, but this quotation has been mere fiction since the 2020 crisis. In Beirut’s parallel reality, you need more than 90,000 pounds to buy a single US dollar.

The Beirut crisis goes beyond exchange rate issues: banks drastically limit withdrawals, local commerce rejects the national currency itself, and ride-share drivers demand payment in dollars. An entire population has been forced to abandon its currency as a store of value.

2. Iranian Rial (IRR) – Under Sanctions’ Weight

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

International sanctions have turned the rial into a virtually untouchable currency in global markets. With R$ 100, any visitor becomes a “millionaire” in rials – a reality hiding an economic tragedy.

The government tries to control the exchange rate, but the informal market prevails with multiple parallel quotations. Faced with this fragility, the Iranian population has turned to cryptocurrencies as an alternative. Bitcoin and Ethereum have become more reliable stores of value than the state’s currency, reflecting the collapse of institutional trust.

3. Vietnamese Dong (VND) – Historical Structural Weakness

Exchange rate: Approximately 25,000 VND per dollar

Unlike other cases in this ranking, Vietnam has an expanding economy. However, its monetary policy keeps the dong historically depreciated. The result is peculiar: tourists leave ATMs holding bundles of banknotes that look like they’re from a science fiction movie.

For the local population, this reality means high import costs and severely limited international purchasing power, despite the country’s economic growth.

4. Laotian Kip (LAK) – Small Economy, Weak Currency

Exchange rate: About 21,000 LAK per dollar

Laos faces structural challenges: a small economy, critical dependence on imports, and constant inflationary pressure. At the borders with Thailand, merchants prefer to accept Thai baht rather than their own currency.

5. Indonesian Rupiah (IDR) – Large Economy, Weak Currency

Exchange rate: Approximately 15,500 IDR per dollar

Despite being Southeast Asia’s largest economy, Indonesia has never sustainably strengthened its currency. Since 1998, the rupiah has been among the most depreciated in the world. For Brazilian tourists, this makes Bali an extraordinarily economical destination – R$ 200 daily provides premium-level comfort.

6. Uzbek Sum (UZS) – Incomplete Economic Reforms

Exchange rate: About 12,800 UZS per dollar

Uzbekistan has implemented significant economic reforms over the last decade, but the sum still bears the weight of decades of a closed economy. Despite efforts to attract international investments, the currency remains weak.

7. Guinean Franc (GNF) – Resource Wealth, Stability Poverty

Exchange rate: Approximately 8,600 GNF per dollar

Guinea is paradoxically rich: abundant gold and bauxite. However, chronic political instability and corruption prevent this natural wealth from translating into a strong, stable currency.

8. Paraguayan Guarani (PYG) – Neighbor with a Historically Weak Currency

Exchange rate: About 7.42 PYG per real

Paraguay maintains a relatively balanced economy, but its guarani has always been a traditionally depreciated currency. For Brazilian consumers, this means Ciudad del Este continues to operate as the South American capital of advantageous trade.

9. Malagasy Ariary (MGA) – Poverty and Devaluation

Exchange rate: About 4,500 MGA per dollar

Madagascar ranks among nations with the lowest development indicators. Its ariary reflects this reality: imports become prohibitive, and the local population’s international purchasing power is virtually nil.

10. Burundian Franc (BIF) – Currency as Weak as the Country’s Stability

Exchange rate: About 550.06 BIF per R$1.00

Closing this ranking, the Burundian franc represents the extreme: currencies so devalued that large transactions require people to literally carry bags of physical money. The country’s permanent political instability is directly reflected in its currency collapse.

What these data reveal about the global economy

The ranking of the most devalued currencies in the world in 2025 is not mere financial curiosity. It is a living document about how politics, institutional trust, and economic management determine the fate of entire nations.

For Brazilian investors, three lessons emerge:

First, fragile economies carry immense risks. Cheap currencies may seem like superficial opportunities, but they reflect deep crises where losses are recurrent.

Second, real opportunities exist in specific contexts: tourism in destinations with devalued currencies becomes financially advantageous for those arriving with strong foreign currency. With dollar, euro, or even the Brazilian real, it’s possible to enjoy exponentially higher purchasing power.

Third, following these dynamics provides practical macroeconomics education. Seeing currencies plummet teaches, in a tangible way, the effects of inflation, corruption, and instability on people’s real lives.

Currency volatility reminds us of a fundamental truth: trust, institutional stability, and good governance are not luxuries but foundations of any viable economy. For those seeking to protect and grow their capital, understanding these global forces is the first step toward making more prudent and informed investment decisions.