What is world's weakest currency?
Have you ever wondered which currency holds the lowest value in the world? You might be surprised to learn that it belongs to an Arab country.
A weak currency is defined by its low exchange rate against other currencies, often reflecting economic instability. Strong currencies indicate a stable economy, while weaker ones signal financial crises that impact trade, investment, and daily life, according to The USA Leaders platform.
Factors Behind Currency Devaluation
According to Wise, several factors contribute to currency depreciation, including:
- Central bank interventions
- High import levels and low export revenues
- Rising inflation rates
- Widespread unemployment
- Political instability and conflicts
Top 10 Weakest Currencies in 2025
Based on financial reports from Forbes, XA.com, and Wise, the world’s weakest currencies in 2025, measured against the US dollar, are:
- Lebanese Lira (LBP) – 1 USD = 89,600 LBP
- Iranian Rial (IRR) – 1 USD = 42,100 IRR
- Vietnamese Dong (VND) – 1 USD = 25,545 VND
- Sierra Leonean Leone (SLL) – 1 USD = 22,785 SLL
- Lao Kip (LAK) – 1 USD = 21,630 LAK
- Indonesian Rupiah (IDR) – 1 USD = 16,525 IDR
- Syrian Lira (SYP) – 1 USD = 13,000 SYP
- Uzbekistani Som (UZS) – 1 USD = 12,920 UZS
- Guinean Franc (GNF) – 1 USD = 8,645 GNF
- Paraguayan Guarani (PYG) – 1 USD = 7,995 PYG
Why Is the Lebanese Lira the Weakest?
The Lebanese currency ranks as the weakest in the world due to:
- A severe economic and banking crisis since 2019
- High inflation rates
- Economic stagnation and political instability
- The impact of the Israeli war on Lebanon
Weakest Arab Currencies in 2025
According to XS.com, the five weakest Arab currencies are:
- Lebanese Lira (LBP) – 1 USD = 89,600 LBP
- Syrian Lira (SYP) – 1 USD = 13,000 SYP
- Iraqi Dinar (IQD) – 1 USD = 1,310 IQD
- Sudanese Pound (SDG) – 1 USD = 601 SDG
- Yemeni Rial (YER) – 1 USD = 246.2 YER
What Does a Weak Currency Mean?
A weak currency indicates severe economic challenges such as inflation, political instability, and government intervention in currency markets. These factors affect the standard of living and increase economic pressures on citizens.
