The nation’s economic challenges, including external debt and trade deficits, impact Kip’s value. Efforts to enhance tourism and regional trade have shown promise but haven’t exponentially strengthened the currency yet. To curb this, a planned railway connecting Beijing to Laos has the potential to attract investors to this small yet strategically positioned nation.
#2 – Vietnamese Dong (24,469 VND/USD)
The country’s economic struggles, including inflation, trade deficits, and political unrest, have contributed to the currency’s decline. The Pakistani Rupee (PKR) has experienced significant depreciation in recent years, placing it among the weakest currencies both in Asia and globally. Despite having one of the largest oil reserves globally, political instability and infrastructure challenges limit economic recovery and currency stability. The Congolese Franc (CDF) is one of the weakest currencies both in Africa and globally. The Cambodian Riel (KHR) is one of the least valued currencies globally. Despite Cambodia’s economic growth, the Riel remains weak due to the widespread use of the US Dollar in the country.
The Lebanese Pound has become virtually symbolic of economic collapse. The currency has depreciated by more than 90% in the past five years, driven by a toxic mix of corruption, fiscal mismanagement, and loss of trust in banking institutions. Despite the country stabilising since then, inflation and currency depreciation has continued. Iraq still relies heavily on oil exports, which due to these being solely in dollars (known as petrodollars), there is little demand for dinars. The current economic situation is fragile, as the country is plagued by corruption and economic mismanagement. Their foreign revenue is also dependent on remittances from abroad and exports of aluminium and cotton.
Top 10 Lowest Valued Currencies Compared to the Indian Rupee (INR) in 2024
The fall in the value of the currency can be explained by various factors. To begin with, the termination of the Islamic Revolution in 1979 was followed by foreign investors’ withdrawal from the country. The nuclear program and the Iran-Iraq war also played a huge part in causing financial distress along with other political unrest in Iran.
Top 20 weakest currencies in the world in 2025
- This is mainly because of high inflation and a depressed economy, as well as political instability.
- Decades of war and sanctions have hindered economic recovery, despite the country’s large oil reserves.
- Madagascar’s currency experienced a significant drop in value around 2009, caused by a mix of natural disasters, political instability and the fallout of the global financial crisis.
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These include high inflation, slow economic growth and increasing foreign debt. The Lebanese pound (LBP) is the world’s weakest currency, and has been at or near the top of this list for a few years. This is mainly because of high inflation and a depressed economy, as well as political instability. The country has also been suffering from a banking crisis since 2019. The Belarusian Republic appeared in 1992, after the USSR’s collapse. It created its national currency, the Belarusian Ruble, which exchange rate remained stable since 2016.
The kip has been the currency of Laos since 1955, replacing the French Indochinese piastre at par. It was pegged to the US dollar from 1958 to 1972 and was replaced twice in 1972 and 1979 to try and stabilise the currency. However, the economy does have upside potential, and due to the significant natural resources, some economists predict that Uganda is poised for significant economic recovery. The Somali shilling is a weak currency, but this may be about to change, and in a few years, it may not even be on this list. Discover the factors causing volatility and how you can harness market fluctuations in your favour to better take advantage of large market moves covering the financial markets.
The Laotian kip has come under intense pressure post-COVID amid soaring inflation and an ongoing economic crisis. This is due to the country being heavily reliant on agriculture and the export of natural resources. Laos has so far attracted limited foreign investment, and its industrial and service sectors have been lacking growth. Sierra Leone’s high dependency on commodity exports makes the currency vulnerable to fluctuations in the commodity market. Vietnam is operating a managed floating regime – meaning its currency is not fixed against the US dollar but is only allowed to fluctuate within a certain range permitted by the central bank.
Indonesian Rupiah
The responsible bodies have tried to save the currency value but haven’t been able to make a significant impact. With an exchange rate of 25,080 VND against 1 USD, the Vietnamese Dong ranks as the third weakest currency in the world. Despite intense efforts from the Vietnamese government, the Dong hasn’t gained much value. The government has tried to impose strong monetary policies and adjust exchange rate policies, but that hasn’t worked. The currency’s value heavily relies on the country’s exports, which haven’t been at their best.
The nuclear program and the Iran-Iraq war also played a considerable part, causing financial distress and other political unrest in Iran. For instance, Indian rupees can be bought with Vietnamese dong or Iraqi dinar. As a result, currencies are always priced relative to another currency, known as the exchange rate. Over the years, its value has dramatically declined due to ongoing political instability, especially after the 1979 Islamic Revolution.
- The kip was introduced as the official currency of Laos in 1952, three years after the country gained independence from France.
- Recession affects the country’s economic growth, and the foreign exchange market is no exception.
- While tourism is a major source of revenue, the COVID-19 pandemic and political unrest have disrupted this sector.
- Many Cambodians prefer to use the US dollar for payments now, which causes the local currency to devalue even more.
But to all’s surprise, the U.S. dollar isn’t the strongest currency; instead it is the Kuwaiti Dinar (KWD). The Guinean Franc struggles due to political instability and a reliance on exports like bauxite and gold. Poor infrastructure and limited industrialization in the nation have weakened the currency. Inflation and a lack of strong fiscal policies increase the challenges. Despite these issues, Guinea has huge resource potential and if the right efforts are put into this direction, it could attract investment and could eventually stabilize the Franc.
But with projects like a new railway to China, things might improve. The Sierra Leonean leone is the third weakest currency in the world, with INR 1 equal to 268 SLL. Sierra Leonean has faced many problems like war, political weakest currency in the world to inr issues, and poverty; the Ebola outbreak in 2014 made things even worse for the country.
The Ugandan Shilling struggles due to reliance on agriculture and coffee exports, which are vulnerable to global price fluctuations. Inflation and a lack of industrial diversification have contributed to its weak value. Under Idi Amin’s leadership, Uganda has faced numerous setbacks, with his policies, particularly regarding immigration, having a damaging impact on the nation’s economy. The effects of these decisions continue to hinder the country’s progress to this day. However, recent years have shown slight improvements in economic stability, although the currency’s value has only strengthened by less than 5%. The Cambodian Riel is one of the world’s cheapest currencies due to limited usage in domestic markets where the US dollar dominates.
