Why Do Certain Coins Drop More Than the Real in 2025

Imagine receiving your salary today and discovering tomorrow at the supermarket that it’s worth half of what it was yesterday. This is not fiction. It is the daily reality for millions of people across various nations. When my colleague returned from a trip to Lebanon, the photo he shared shocked me: him holding a huge bundle of banknotes that looked like it was from a board game. More than 50,000 Lebanese pounds to buy the equivalent of R$ 3.00.

While here in Brazil we discuss the dollar at R$ 5.44 (September 2025 exchange rate), there are places where currencies literally disintegrate over time. The Brazilian real ended 2024 as the worst currency in the world among the major ones, with a decline of 21.52%. But this pales in comparison to what you will see in this article. In 2025, a global environment plagued by persistent inflation, political instability, and economic crises turned some currencies into living symbols of fragility. But what truly causes a currency to devalue so much that it is considered cheaper than the real and other strong currencies?

The Mechanisms Behind the Monetary Collapse

Weak currency is never an accident. It is always the result of a perfect storm of factors that destroy confidence in financial markets.

Galloping inflation: In Brazil, 7% annual inflation causes concern. We are around 5% in 2025. Now imagine economies where prices double monthly. This hyperinflation not only erodes savings, it annihilates wages and destroys the economic fabric.

Permanent political instability: Coups, civil wars, governments changing annually. Without legal security, investors flee, and the currency turns into colorful paper without backing.

International economic blockades: When the global community closes doors to a country, the result is predictable: the local currency becomes isolated, losing utility even in domestic transactions.

Insufficient foreign currency reserves: When the Central Bank does not hold enough dollars, defending the currency becomes impossible. Devaluation is only a matter of time.

Mass capital outflows: When even citizens prefer to store dollars informally rather than keep their national currency, the situation has become terminal.

The Map of the 10 Most Weakened Currencies Globally in 2025

Based on contemporary exchange data and international economic reports, here are the currencies that depreciated the most:

1. Lebanese Pound (LBP): The Unstoppable Collapse

Exchange rate: 1 million LBP = R$ 61.00 (Sep/2025)

Unquestionable leader in weakening. Officially, there should be 1,507.5 pounds per dollar. In practice, the real market demands over 90,000. Banks limit withdrawals, stores only accept dollars, and even Uber drivers in Beirut charge in foreign currency. It’s the ultimate symbol of an economy completely decoupled from official reality.

2. Iranian Rial (IRR): Sanctions That Destroy the Currency

Exchange rate: 1 real = 7,751.94 rials

External pressures turned the rial into a third-category currency. With R$ 100, you accumulate millions of rials. The government tries to control the rate, but there are also multiple informal quotations. Young Iranians have migrated en masse to cryptocurrencies like Bitcoin and Ethereum – which have become a more reliable store of value than the state currency itself.

3. Guinean Franc (GNF): Natural Wealth, Weak Currency

Exchange rate: Approximately 8,600 GNF per dollar

Guinea has abundant gold and bauxite. However, political instability and corruption prevent this mineral wealth from translating into monetary strength. It’s the paradox of a rich but monetarily broke country.

4. Burundian Franc (BIF): When Politics Destroy the Currency

Exchange rate: About 550.06 BIF per R$1.00

Chronic political instability directly reflects in the currency’s collapse. People literally carry bags of money for significant transactions. It’s the final example of how institutional fragility turns into monetary fragility.

5. Malagasy Ariary (MGA): Poverty and Depreciated Currency

Exchange rate: Approximately 4,500 MGA per dollar

Madagascar, among the poorest nations in the world, has a currency that reflects this reality. Imports become prohibitive, and international purchasing power is virtually nil for the local population.

6. Vietnamese Dong (VND): The Case of the Economic Giant with a Weak Currency

Exchange rate: Approximately 25,000 VND per dollar

Vietnam is growing economically, but the dong remains historically weak due to monetary policy choices. Tourists feel millionaires when withdrawing 1 million dong. For Vietnamese, it means expensive imports and limited international purchasing power – the cheapest currency compared to the real in many practical aspects.

7. Laotian Kip (LAK): Small Economy, Small Currency

Exchange rate: About 21,000 LAK per dollar

Laos has a reduced economy, dependence on imports, and constant inflation. At the Thai border, merchants prefer to accept baht instead of the local kip.

8. Indonesian Rupiah (IDR): Largest Asian Economy, But Weak Currency

Exchange rate: Approximately 15,500 IDR per dollar

Indonesia is a regional economic powerhouse. Still, the rupiah has never stabilized. Since 1998, it remains among the most weakened globally. For Brazilian tourists, Bali becomes an extraordinarily cheap shopping destination: R$ 200 daily offers luxury comfort.

9. Uzbek Sum (UZS): Insufficient Reforms

Exchange rate: About 12,800 UZS per dollar

Uzbekistan has implemented relevant economic reforms. However, the sum still bears the weight of decades of isolated economy. Efforts to attract international capital remain insufficient to strengthen the currency.

10. Paraguayan Guarani (PYG): Our Neighbor with a Weak Currency

Exchange rate: About 7.42 PYG per real

Paraguay maintains a relatively balanced economy, but the guarani remains historically weak. For Brazilians, Ciudad del Este remains the mecca of international shopping.

What Does This Mean for Those Thinking of Investing or Traveling

These ten currencies reveal important economic patterns. First, fragile economies pose immense risks. Cheap currencies can be tempting as opportunities, but they reflect deep crises.

Second, there are real advantages in tourism. Destinations with depreciated currencies become financially attractive for those arriving with dollars, euros, or reais.

Third, monitoring these depreciations offers living lessons on macroeconomics. It concretely shows how inflation, corruption, and instability impact real economies.

Lessons for the Brazilian Investor

The central question remains: how to protect purchasing power when living in an economy with a currency cheaper than some others? The answer involves smart diversification. Assets that transcend borders – and are not subject to local inflation – provide genuine protection. Following how different currencies move globally is not just curiosity. It is applied financial education. It is understanding that confidence, stability, and good governance determine the fate of any economy and, consequently, your future as an investor. Investing is a continuous process of economic and social learning.