The Ranking of the Most Depreciated Currencies in the World in 2026

When a currency rapidly devalues, the consequences for the local population are devastating. What seemed expensive yesterday becomes inaccessible today. While Brazilians watch dollar fluctuations with concern, entire nations have currencies that simply cannot retain value. This article explores the 10 most devalued currencies in the world in 2026, analyzing the economic mechanisms behind each currency collapse.

Brazil faced significant challenges in 2024, ranking among the economies with the weakest currencies globally. However, the situation in other nations reveals much deeper crises. Understanding how these devaluations occur offers valuable lessons on economic stability, fiscal management, and confidence in the financial system.

The Mechanisms Behind Currency Devaluation

A currency doesn’t weaken by chance. Devaluation results from a combination of structural factors that undermine investor and public confidence. The main catalysts include:

Uncontrolled inflation: When prices of goods and services rise much faster than wages, purchasing power evaporates. In some countries, hyperinflation causes prices to double monthly, completely destroying accumulated savings.

Political instability: Frequent government changes, civil wars, lack of legal security, and endemic corruption scare off both domestic and international investors. Without legal guarantees, no one wants to hold their wealth in the local currency.

Economic isolation: International sanctions cut off access to the global financial system, rendering the currency useless for international transactions. The direct result is accelerated devaluation.

Insufficient foreign exchange reserves: Central banks need dollars and gold to defend their currencies during crises. Without these reserves, it’s impossible to contain exchange rate falls.

Capital flight: When citizens prefer to accumulate foreign currencies informally rather than trust the national currency, the situation reaches a critical point. This lack of domestic demand exponentially drags down the currency’s value.

Understanding these factors is essential to grasp why certain nations face such severe currency crises.

Ranking: The 10 Most Devalued Currencies Globally

1. Lebanese Pound (LBP) – The Most Extreme Devaluation

The Lebanese Pound is the most dramatic example of a currency collapse today. While the official rate should be 1,507.5 pounds per dollar, in the black market (where real transactions occur), it takes over 90,000 pounds to buy 1 dollar. This staggering discrepancy reveals the severity of Lebanon’s economic crisis that began in 2020.

With R$61.00, you can buy 1 million Lebanese pounds—a figure illustrating the depth of devaluation. Banks strictly limit withdrawals, and merchants in Beirut prefer transactions in US dollars. The Lebanese financial system has collapsed, turning the local currency into nearly worthless paper.

2. Iranian Rial (IRR) – Sanctions and Economic Isolation

American sanctions have turned the Iranian Rial into one of the weakest currencies worldwide. A Brazilian with R$100 becomes a “millionaire” when exchanging for the local currency—not because of prosperity, but due to extreme devaluation.

The government tries to maintain official exchange controls, but street reality shows multiple parallel rates. Facing this instability, young Iranians have flocked to cryptocurrencies, especially Bitcoin and Ethereum, seeing them as more reliable stores of value than the national currency. This adoption of digital assets is a genuine solution to preserve capital in economies with severe currency devaluation.

3. Vietnamese Dong (VND) – Structural Weakness in a Growing Economy

Vietnam’s case is unique: it’s a country with an expanding economy, but its currency remains historically weak due to long-term monetary policy decisions. With about 25,000 VND needed to buy 1 dollar, ATMs dispense enormous amounts of banknotes.

For foreign tourists, this offers an immediate advantage: US$50 provides days of shopping. For Vietnamese, however, it means imports are expensive and international purchasing power remains limited. The dong’s weakness directly affects the country’s international competitiveness.

4. Lao Kip (LAK) – Dependence and Fragility

Laos faces a complicated economic situation characterized by a small economy, heavy dependence on imports, and persistent inflation. With around 21,000 LAK per dollar, the kip is so weak that border traders with Thailand prefer to accept Thai baht in transactions.

This situation exposes the vulnerability of small economies under inflationary pressures without sufficient defense mechanisms.

5. Indonesian Rupiah (IDR) – Long-term Weakness

Indonesia, Southeast Asia’s largest economy, has never managed to strengthen its currency adequately. Since 1998, the Indonesian Rupiah has been among the weakest currencies, trading at approximately 15,500 IDR per dollar.

For Brazilian tourists, Bali offers extremely low costs: R$200 a day can provide comfortable living. However, this structural weakness indicates economic vulnerabilities that have persisted for decades despite regional growth.

6. Uzbek Sum (UZS) – Incomplete Reforms

Uzbekistan has implemented significant economic reforms in recent years, but the Uzbek Sum (about 12,800 UZS per dollar) still reflects decades of a closed, isolated economy. Although the country seeks to attract foreign investment, the currency remains weak, signaling that reforms have yet to generate sufficient confidence in international financial markets.

7. Guinean Franc (GNF) – Natural Resources Do Not Guarantee a Strong Currency

Guinea is rich in gold and bauxite, highly valuable natural resources. Yet, with the Guinean Franc at approximately 8,600 GNF per dollar, the currency remains weak. This demonstrates how chronic political instability and corruption prevent natural wealth from translating into currency strength. Resources exist, but poor governance fails to convert them into confidence.

8. Paraguayan Guarani (PYG) – Traditional Weakness

Paraguay has a relatively stable economy, but the Guarani is traditionally weak: about 7.42 PYG per Brazilian real. For Brazilian consumers, Ciudad del Este remains a favorable shopping destination, with prices significantly lower due to the local currency’s devaluation.

9. Malagasy Ariary (MGA) – Extreme Poverty and Weak Currency

Madagascar, one of the poorest nations in the world, has a currency reflecting this economic reality. With approximately 4,500 MGA needed to buy 1 dollar, imports become prohibitive, and the population lacks international purchasing power. The Malagasy Ariary is a direct symbol of the country’s economic fragility.

10. Burundian Franc (BIF) – Extreme Political Instability

Closing the ranking, the Burundian Franc is so devalued that large purchases require substantial amounts of cash. With an approximate rate of 550 BIF per real, the currency reflects Burundi’s chronic political instability, where recurrent conflicts completely undermine economic confidence.