Top 10 Most Depreciated Currencies in the World: What Makes the Real Seem Strong

A few days ago, I received an intriguing photograph from a friend abroad. He was holding an impressive stack of banknotes that resembled a Monopoly game – over 50,000 pounds – and the actual value? Something close to R$ 3. The scene made me reflect on an uncomfortable truth: while we debate here about the dollar at R$ 5.44, there are countries where the population deals daily with currencies that have simply disappeared from the map of value.

The Brazilian real, to put things into context, ended 2024 as the worst-performing currency among the world’s major currencies, declining 21.52%. Impressive? Yes. But it’s just the beginning when you look at the global scenario of 2025, marked by persistent inflation, political instability, and economic crises that have turned certain currencies into living symbols of financial fragility.

The Factors Behind the Monetary Collapse

Before identifying the currencies that truly hit rock bottom, it’s essential to understand what drags a currency down to this level. It’s never an isolated accident but always a perfect storm of elements that destroy confidence.

Uncontrolled Inflation: When prices double monthly – a phenomenon known as hyperinflation – savings evaporate and wages lose purchasing power almost instantly. This is different from the Brazilian inflation of 5% in 2025; we’re talking about economies where money loses value within weeks.

Fragile Political Governance: Coups, internal conflicts, governments that change rapidly. Without legal security, investors disappear, and the local currency becomes worthless paper.

International Economic Blockades: When the global community isolates a country, its currency loses all utility in foreign trade. Access to the international financial system is cut off, leaving the national currency practically worthless.

Insufficient Currency Reserves: If the Central Bank doesn’t have dollars to defend the currency, it crashes. It’s like maintaining an empty checking account while trying to keep appearances.

Unrestrained Capital Exodus: When even citizens prefer to store dollars informally rather than hold local currency, you know you’re facing a deep trust crisis.

The 10 Currencies Worth Less Than the Real in 2025

1. Lebanese Pound (LBP)

Exchange rate: 1 million LBP = R$ 61.00

The most dramatic collapse in the global monetary scene. Officially, it should be 1,507.5 pounds per dollar, but that rate is fiction. In street reality, it takes 90,000 pounds just to buy one dollar. The situation has deteriorated so much that banks have frozen withdrawals and merchants accept only foreign currency. Taxi drivers in Beirut literally refuse the national currency.

2. Iranian Rial (IRR)

Exchange rate: 1 real = 7,751.94 rials

Western sanctions have turned the rial into a tertiary economy currency. With R$ 100, you officially become a millionaire in rials – a statement that perfectly illustrates the absurdity of the situation. The government tries to control the exchange rate, but street prices operate with multiple parallel rates.

An interesting phenomenon emerges from this crisis: young Iranians have migrated massively to cryptocurrencies. Bitcoin and Ethereum have become more reliable stores of value than the state currency. For a significant portion of the population, these digital assets represent the only safe way to preserve capital.

3. Vietnamese Dong (VND)

Exchange rate: approximately 25,000 VND per dollar

Unlike the previous ones, Vietnam has an expanding economy – but the dong remains historically weak by design of monetary policy. The paradox is attractive to tourists: withdrawing 1 million dong from an ATM and receiving a bundle that looks like a fortune.

For Vietnamese, however, it means expensive imports and virtually zero international purchasing power. It’s the disadvantage of holding a weak currency in globally integrated economies.

4. Laotian Kip (LAK)

Exchange rate: about 21,000 LAK per dollar

Laos faces a challenging trinomial: a compact economy, critical dependence on imports, and ongoing inflationary pressure. The kip is so fragile that border merchants with Thailand prefer Thai baht. This rejection of the local currency signals deep distrust.

5. Indonesian Rupiah (IDR)

Exchange rate: approximately 15,500 IDR per dollar

Although Indonesia is Southeast Asia’s largest economy, the rupiah has never gained strength. Since the 1998 crisis, it remains among the weakest globally. For Brazilians, this means Bali is absurdly affordable – with R$ 200 daily, you live like a millionaire.

6. Uzbek Sum (UZS)

Exchange rate: about 12,800 UZS per dollar

Uzbekistan has recently implemented substantial economic reforms, but the sum reflects decades of economic isolation. Despite efforts to attract foreign investment, the currency remains weak due to the legacy of the past.

7. Guinean Franc (GNF)

Exchange rate: approximately 8,600 GNF per dollar

A classic pattern of resource-rich nations (gold and bauxite) but trapped in a weak currency. Political instability and systemic corruption prevent mineral wealth from translating into monetary solidity.

8. Paraguayan Guarani (PYG)

Exchange rate: about 7.42 PYG per real

Our neighbor maintains a relatively stable economy, but the guarani is structurally weak. For Brazilians, it perpetuates Ciudad del Este as the perfect destination for international shopping – the local currency still offers a favorable exchange advantage for visitors.

9. Malagasy Ariary (MGA)

Exchange rate: approximately 4,500 MGA per dollar

Madagascar ranks among the most economically challenged nations, and the ariary reflects this brutal reality. Imports become an inaccessible luxury, and international purchasing power is practically zero for the local population.

10. Burundian Franc (BIF)

Exchange rate: about 550.06 BIF per real

Closing the ranking is a currency so devalued that substantial purchases literally require bags of physical cash. Burundi’s chronic political instability manifests directly in the collapse of monetary confidence.

What Can We Learn From This

The ranking of the most depreciated currencies is not empty financial curiosity. It reveals how politics, institutional trust, and economic fundamentals are inextricably linked.

For Brazilian investors, three lessons emerge:

First: Fragile economies present disproportionate risks. Cheap currencies may seem like speculative opportunities, but the reality is that the underlying countries face deep structural crises.

Second: Real opportunities exist in tourism and consumption. Destinations with devalued currencies offer genuine financial advantage to those arriving with real, dollar, or euro.

Third: It’s a practical macroeconomics lesson to observe how inflation, corruption, and instability destroy purchasing power in real time. Following these dynamics sharpens understanding of the importance of trust, stability, and good governance.

The uncomfortable truth is that when you understand why these currencies collapse, you also better understand the risks surrounding your own currency – and how to build protection against these risks through diversification and assets that transcend national borders.