The World's Most Devalued Currencies in 2025: The Monetary collapse Explained

When you receive your salary on a Monday and find out on Wednesday that your purchasing power has already halved, you are experiencing what millions of people around the world live daily. A colleague recently returned from a trip to Lebanon with photos holding large stacks of bills—more than 50,000 Lebanese pounds—that correspond to just R$ 3.00 in reais. Brazil ended 2024 as the worst-performing currency among the main pairs, with a decline of 21.52%, but this is insignificant compared to what we will see in this report.

The global scenario of 2025 is marked by persistent inflation, political fragmentation, and economic imbalances that have turned certain currencies into indicators of financial fragility. To understand the most devalued currencies in the world, we need to grasp the mechanisms behind this monetary collapse.

Factors That Destroy a Currency

Weak currencies never happen by chance. They are the result of a convergence of elements that undermine institutional credibility:

Galloping inflation: While Brazil fluctuates between 5-7% per year, some nations see prices double monthly. This phenomenon, known as hyperinflation, permanently erodes savings and wages.

Structural political instability: Coups, internal conflicts, government turnover. In the absence of legal security, foreign capital withdraws, and the local currency becomes paper without backing.

Economic isolation: When international sanctions block access to the global financial system, the local currency loses functionality in foreign trade. The Iranian case exemplifies this scenario perfectly.

Depleted foreign reserves: Without enough dollars in the central bank’s coffers, defending the parity becomes impossible. The currency plummets dramatically.

Savings exodus: When even local citizens prefer to store foreign currency unofficially instead of the national currency, the monetary system is collapsed.

The Ranking of the 10 Most Devalued Currencies in 2025

1. Lebanese Pound (LBP)

Official rate: 1,507.5 LBP per dollar | Real rate (black market): >90,000 LBP per dollar

Unquestionably leading in global devaluation. Since the 2020 crisis, the official rate no longer exists in the real world. In informal circuits, it takes more than 90,000 pounds to buy a single dollar. Banks limit withdrawals, merchants demand payment in dollars, taxi drivers refuse the local currency. Beirut has become a de facto dollarized economy.

2. Iranian Rial (IRR)

Rate: 1 real = 7,751.94 rials

The American embargo turned the rial into a third-category currency. With R$ 100, you become a millionaire in rials on paper. The government tries to control the exchange rate, but multiple parallel quotations dominate reality. Young Iranians have been migrating massively to Bitcoin and Ethereum as a more reliable store of value than the national currency. Cryptocurrencies have become the capital preservation strategy for populations in collapsing currencies.

3. Vietnamese Dong (VND)

Rate: Approximately 25,000 VND per dollar

A peculiar case: expanding economy but historically weak currency by monetary policy choice. Tourists withdraw amounts that seem straight out of heist movies. For Vietnamese, this means expensive imports and limited international purchasing power.

4. Laotian Kip (LAK)

Rate: Approximately 21,000 LAK per dollar

Laos faces a tiny economy, dependence on imports, and ongoing inflation. At the Thai border, merchants prefer the Thai baht over the local currency.

5. Indonesian Rupiah (IDR)

Rate: Approximately 15,500 IDR per dollar

The largest economy in Southeast Asia has not been able to strengthen its currency since 1998. Historically weak, it offers significant tourist advantages for South American visitors. Bali becomes extremely affordable with modest budgets.

6. Uzbek Sum (UZS)

Rate: About 12,800 UZS per dollar

Recent economic reforms have not reversed decades of isolation. The country attracts investments, but the currency remains weak.

7. Guinean Franc (GNF)

Rate: Approximately 8,600 GNF per dollar

Wealth in gold and bauxite does not translate into monetary strength. Chronic political instability and corruption prevent natural resources from strengthening the currency.

8. Paraguayan Guarani (PYG)

Rate: About 7.42 PYG per real

Relatively balanced economy, but the guarani is structurally weak. For Brazilians, Ciudad del Este continues to offer advantageous shopping opportunities.

9. Malagasy Ariary (MGA)

Rate: Approximately 4,500 MGA per dollar

Madagascar ranks among the poorest nations globally. The ariary reflects this reality: imports reach prohibitive prices, and the population has zero access to international purchasing power.

10. Burundian Franc (BIF)

Rate: About 550.06 BIF per real

Currency so depreciated that significant transactions require carrying suitcases of bills. Chronic political instability directly materializes in the national currency.

What These Currencies Reveal About the Global Economy

This ranking is not just a financial curiosity. It is a diagnosis of how institutions, political trust, and economic stability are interconnected. Three practical observations emerge:

First: fragile economies concentrate immense risks. Cheap currencies may seem like opportunities, but the reality is that these territories face deep structural crises.

Second: real opportunities exist in tourism and consumption. Destinations with depreciated currencies become financially accessible for those arriving with strong currencies—dollars, euros, or even reais in some cases.

Third: these situations serve as laboratories for applied macroeconomics. Observing how currencies collapse teaches practical lessons about inflation, corruption, political instability, and their real effects on populations.

The pattern is clear: trust, institutional stability, and good governance are pillars that support any currency. Their absence creates the scenario we see in this global ranking.