The Monetary Devaluation in 2025: Discover the Currencies That Lost Their Strength

Receiving your salary and watching your purchasing power disappear within hours. This is the daily reality for millions of people around the world living with collapsing economies. A friend recently sent a photo from Beirut: literally holding a bundle of banknotes that looked like it came from a board game. Over 50,000 Lebanese pounds. Its value? Approximately R$ 3.00.

While here in Brazil debates revolve around the dollar at R$ 5.44, there are nations where the population carries bags of money for simple purchases. The Brazilian real ended 2024 as the worst currency among the main ones, with a decline of 21.52%. Still, it’s almost irrelevant compared to what we will see in this article.

The year 2025 has solidified a scenario where persistent inflation, political instability, and structural economic crises have turned certain currencies into living symbols of fragility. But what really destroys a currency’s value? Why do some nations experience this reality while others maintain stability? And most importantly: what does this mean for those who want to invest or travel?

The True Culprits: Understand Why Currencies Disappear

Weak currency is never a coincidence. It’s always the result of a perfect storm of factors that erode confidence in the monetary system. Let’s look at the main ones:

When inflation gets out of control: In Brazil, 5% inflation already raises concerns. In many countries, prices double every month. This is hyperinflation – a phenomenon that literally devours entire savings. Purchasing power simply evaporates.

Political instability as a destroyer: Coups, internal conflicts, governments that constantly change direction. When there is no legal security, investors disappear and the currency turns into worthless paper.

Economic isolation: International sanctions cut off access to the global financial system. The inevitable result is that the local currency no longer serves for international transactions.

Empty international reserves: A Central Bank without enough dollars is like having zero in the current account. It cannot defend the currency, and it collapses. Gold reserves still matter, but the foundation is access to the dollar.

When citizens themselves abandon their currency: Informally saving in dollars, fleeing to cryptocurrencies, seeking any stable asset. When even the local population rejects its own currency, you know the scenario is critical.

The 10 Cheapest Currencies in the World in 2025

Based on updated exchange rate data, here is the list of those that today completely compromise the purchasing power of their populations.

1. Lebanese Pound (LBP)
Exchange rate: 1 million LBP = R$ 61.00

The highlight of this list. Officially, it should be 1,507.5 pounds per dollar. In street reality, you need more than 90,000 pounds for one dollar. Banks limit withdrawals. Uber drivers in Beirut reject the local currency and ask for dollars. The situation is so severe that commercial establishments do not even accept Lebanese pounds for significant transactions.

2. Iranian Rial (IRR)
Exchange rate: 1 Brazilian real = 7,751.94 Iranian rials

Sanctions have turned the rial into worthless paper. With R$ 100, you become technically “a millionaire.” The government tries to control the exchange rate, but multiple parallel rates exist. The population’s response? Massive migration to Bitcoin and Ethereum. For young Iranians, cryptocurrencies have become the only reliable store of value. Investing in digital assets has ceased to be speculation and has become a survival necessity.

3. Vietnamese Dong (VND)
Exchange rate: Approximately 25,000 VND per dollar

Vietnam is growing economically, but the dong remains historically weak. Withdrawing 1 million dong from an ATM creates a pile worthy of a heist movie. Great for tourists – with US$50, they feel like millionaires. For Vietnamese, imports become very expensive and international purchasing power disappears.

4. Lao Kip (LAK)
Exchange rate: About 21,000 LAK per dollar

Laos faces a small economy, dependence on imports, and persistent inflation. The kip is so devalued that at the border with Thailand, merchants prefer to accept Thai baht. The local currency has simply lost its function as a regional reserve.

5. Indonesian Rupiah (IDR)
Exchange rate: About 15,500 IDR per dollar

Despite being Southeast Asia’s largest economy, the rupiah has never gained strength. Since 1998, it has been among the weakest globally. A benefit for Brazilian tourists: Bali offers an extremely low cost of living. With R$200 a day, you live comfortably.

6. Uzbek Sum (UZS)
Exchange rate: About 12,800 UZS per dollar

Uzbekistan has implemented significant economic reforms in recent years, but the sum carries the weight of decades of a closed economy. Despite efforts to attract foreign investment, the currency remains weak.

7. Guinean Franc (GNF)
Exchange rate: About 8,600 GNF per dollar

Guinea is rich in gold and bauxite, but political instability and systemic corruption prevent this natural wealth from translating into a strong currency. A classic example of resource wealth with monetary poverty.

8. Paraguayan Guarani (PYG)
Exchange rate: About 7.42 PYG per real

Our neighbor maintains a relatively stable economy, but the guarani is traditionally weak. For Brazil, this means Ciudad del Este remains a destination for advantageous shopping.

9. Malagasy Ariary (MGA)
Exchange rate: About 4,500 MGA per dollar

Madagascar is one of the poorest nations on the planet, and its currency reflects this reality. Imports cost a fortune, and the population practically has no international purchasing power.

10. Burundian Franc (BIF)
Exchange rate: About 550.06 BIF per real

Closing the list, a currency so devalued that larger purchases literally require carrying bags of banknotes. The chronic political instability in Burundi is directly reflected in its national currency.

What Can We Learn From This

This ranking is not just curiosity. It’s a mirror of how politics, institutional trust, and economic solidity are inseparably linked.

For Brazilian investors:

Fragile economies pose huge risks. Cheap currencies may seem like opportunities, but most of these countries experience deep and systemic crises.

Tourism and consumption offer real advantages. Destinations with devalued currencies are financially advantageous for those arriving with dollars, euros, or even reais in some cases.

Macroeconomics is alive. Monitoring how currencies collapse helps understand the real effects of inflation, corruption, and instability on people’s daily lives.

Practical lessons: Pay attention to indicators of political stability, foreign exchange reserves, and institutional trust as ways to see the importance of good governance for any economy. Investing is a continuous process of economic and social learning.

A strategy to ensure the appreciation of your assets is to invest in assets that transcend borders and are not subject to local inflation. Cryptocurrencies, gold, and other global assets are increasingly relevant in this scenario.

Follow our content to discover not only which currencies are more fragile but also where the true value recoveries are, how to identify hidden opportunities, and how to prepare to seize them. Understanding the monetary world is understanding power.