Weakest Currencies in the World In 2025

Iranian Rial (IRR)

Today 1 Indian Rupee = 477.79 IRR. 

Currently, the Iranian Rial is considered the world's least valuable currency. This is the result of factors like political unrest in the country. The Iran-Iraq war and the nuclear program also played a huge part.

Vietnamese Dong (VND)

1 Indian Rupee = 299.70 VND

The nation has historically operated under a centralized economy. Although the nation has started establishing a market economy, there is still a long way to go. Currently, there is a significant devaluation of the Vietnamese Dong.

Sierra Leonean Leone (SLL)

1 Indian Rupee = 258.17 SLL

This African nation is severely impacted by poverty. 1 US dollar is worth 13892.50 Sierra Leonean Leones, or SLL. The nation has a long history of scandals and corruption. Along with other wars in the countries of Western Africa, it has also seen a terrible civil war. The nation's economy and the currency's value have both declined as a result of all this.

Lao/Laotian Kip (LAK)

1 Indian Rupee = 246.45 LAK

The Lao currency has not devalued; since its establishment in 1952, it has maintained a low rate. Buying one US dollar costs approximately 15079.11 Laotian Kip or LSK. On the plus side, the currency's worth has increased over time

Indonesian Rupiah (IDR)

1 INR = 186.66 IDR

There has been no improvement in the Indonesian Rupiah in the last 7 years. Its depreciation is linked to several issues, including declining foreign exchange reserves due to the central bank's failure to safeguard the currency. Indonesia is heavily reliant on its commodity export industry. Additionally, the currency's value has decreased further due to the decline in commodity prices. Foreign investors hold 35 to 40 percent of the Rupiah sovereign bonds, which risks the capital flow.

Uzbekistani Som (UZS)

1 Indian Rupee = 141.11 UZS

This nation's economy is among the worst, which results in a weak currency. The epidemic has had an impact on the economy of the nation like it has on many others, but data indicates that the nation's internal operations restarted in the third quarter of 2022. However, the decline in industrial output has increased uncertainty about the future of the currency.

Guinean Franc (GNF)

1 Indian Rupee = 98.43 GNF

Guinean Franc is the official currency of Guinea. The nation suffers from widespread corruption and political unrest, which has made its currency weak. Year after year, the value of the nation decreases.

Paraguayan Guarani (PYG)

1 Indian Rupee = 81.96 PYG

The PYG is Paraguay's official unit of currency. High inflation, corruption, a high unemployment rate, and a rise in poverty resulted from a devastating economic collapse. Each of these elements has had a detrimental effect on the currency.

Cambodian Riel (KHR)

1 Indian Rupee = 45.49 KHR

The Cambodian Riel is weak due to high dollarisation. Political instability in the late 80s and early 90s eroded trust in the Riel, leading to widespread use of the US dollar. By the 90s, the dollar made up 90 percent of the money in circulation. Although the National Bank of Cambodia has increased Riel circulation by 80 percent over the past two decades, the country remains heavily reliant on the US dollar.

Ugandan Shilling (UGX)

1 Indian Rupee = 40.09 USH

In 1966, the East African Shilling was replaced by the Uganda Shilling. The currency is now one of the least valuable ones in existence. Uganda, a nation in East Africa, suffered a serious setback under Idi Amin's rule. The president implemented measures, such as immigration laws, that harmed the nation's economy. The country's progress is still being hampered by the effects of the president's economic deterioration. However, the currency's value has increased in recent years, with devaluations of at most 5%.

Factors that have an impact on Currency Exchange Rates:

The following factors influence the rate of currency exchange:

1. Current Account Deficits: A current account deficit occurs when a country imports more than it exports. This creates a higher demand for foreign currencies, reducing demand for the local currency. As a result, the local currency’s value falls.

1. Economic Performance: Strong economic performance and political stability attract foreign investment. More investment increases demand for the local currency, raising its value. Stability reduces uncertainty and boosts the currency’s strength.

1. Government Debt: High government debt can scare off foreign investors. Concerns about inflation and debt repayment can lead to currency devaluation. An oversupply of the local currency from investors selling off their holdings can further weaken it.

1. Inflation and Interest Rates: Inflation measures how quickly prices rise. High inflation often leads to higher interest rates as central banks try to control it. Higher interest rates attract foreign investors, boosting the currency’s value. Low interest rates can increase borrowing and spending, potentially leading to inflation and a weaker currency.

1. Recession: During a recession, economic activity slows, and interest rates often drop. Lower interest rates reduce the currency’s attractiveness to investors. This can decrease demand for the currency and weaken its value.

1. Speculation: Investors buy currencies they expect to rise in value. Increased demand from speculation can strengthen the currency. If investors expect a currency to fall, they may sell it off, decreasing its value.

1. Terms of Trade: Terms of trade compare export prices with import prices. If export prices rise faster than import prices, it improves the terms of trade. This leads to higher revenue and demand for the currency, increasing its value.