Khaberni - Have you ever wondered what the weakest currency in the world is? Did you know that this currency is the currency of an Arab country?!
A weak currency can be defined as a currency that has a low or decreasing value compared to other currencies.
The strength of a currency indicates the strength or weakness of a country's economy. A strong and stable currency is usually a sign of a robust economy that performs well globally. However, when the currency is weak, it is an indicator of serious economic problems that negatively affect trade and investment, and even everyday life for ordinary people, according to the platform "The USA leaders."
There are many factors that can lead to a decrease in a country's currency value according to the platform "Wise," and can be summarized as follows:
• Central bank intervention
• High imports
• Low export revenues
• High inflation and rising prices
• High unemployment
• Wars and political instability
For example, the Venezuelan currency is currently falling due to the political crisis between Caracas and Washington. The British newspaper "Financial Times" reported that the exchange rate of the Venezuelan currency dropped from 43 Bolivars per dollar a year ago to 228 Bolivar now, and with rampant inflation and the collapse of the local currency exchange rate, 86% of Venezuelans suffer from poverty, according to the newspaper.
The report will show:
• A list of the 10 weakest currencies in the world in 2025.
• A list of the 5 weakest Arab currencies in 2025
• A discussion of the reasons for each currency's weakness.
And this according to a number of specialized platforms such as Forbes magazine, "USA Leaders" and "xe.com" and "Wise," as well as based on the exchange rate of each of these currencies compared to the US dollar as of writing these lines.
The 10 weakest currencies in the world:
10- Malagasy Ariary (MGA)
Currency value compared to the dollar: 1 dollar = 4,521 Ariary.
The Malagasy Ariary was introduced in 1961, and is the currency of Madagascar after officially replacing the Franc in 2005. The value of one Ariary is currently 0.00022 dollars, making one dollar equal 4521.11 Ariary.
Madagascar is an island nation off the southeastern coast of Africa. Agriculture, including raffia palm cultivation, mining, fishing, and forestry, are the main elements of its economy. Its main exports include vanilla, nickel, and cloves.
9- Paraguayan Guarani "Paraguayan Guarani" (PYG)
• Currency value compared to the dollar: 1 dollar = 7,087 Guarani
Factors for currency weakness:
– Corruption and proliferation of counterfeit currencies
– Inflation and rising prices
– Rampant unemployment in the country
8 – Guinean Franc (GNF)
• Currency value compared to the dollar: 1 dollar = 8,645 Francs
The basic economic factors affecting currency weakness:
– Heavy reliance on exports of basic commodities
– Ongoing inflation challenges
– Corruption and poor economic management
– Low foreign currency reserves
7- Syrian Pound (SYP)
• Currency value compared to the dollar: 1 dollar = 11,000 pounds
Reasons for the weakness of the Syrian currency:
– The devastating war that the country has witnessed since 2011 played a crucial role in the weakness of the pound.
– The corruption that was rampant in the Syrian state's joints during the rule of the Assad family.
– Weak exports and the economic blockade imposed on the country throughout the years of the war and until the fall of Bashar al-Assad.
6- Uzbekistan Som "Uzbekistan Som" (UZS)
• Currency value compared to the dollar: 1 dollar = 11,861 som
Despite Uzbekistan having huge reserves of oil and gas, the value of the Uzbek Som (UZS) has continued to deteriorate in recent years. This is likely due to the following factors:
– High unemployment rates
– Inflation and rising prices
– Low economic growth
– Corruption prevalence
5- Indonesian Rupiah (IDR)
• Currency value compared to the dollar: 1 dollar = 16,719 Rupiah.
Indonesia is an emerging country with a large growing economy with tremendous potential, yet its currency is one of the weakest in the world due to the following factors:
– Previous financial crises, like the Asian financial crisis.
– High inflation periods.
– Dependency on foreign investment and the exit of foreign investors from the country.
– Deliberate policies of the Indonesian central bank to maintain a low value of the Rupiah to support growth and exports according to Reuters.
4- Lao Kip (LAK)
• Currency value compared to the dollar: 1 dollar = 21,663 Kips
Laos has a growing economy, but it still suffers from:
– High inflation rates.
– Trade imbalance (increased imports and decreased exports).
– Limited foreign currency reserves.
3- Vietnamese Dong (VND)
• Currency value compared to the dollar: 1 dollar = 26,345 Dongs.
The Vietnamese Dong (VND) ranks third in this list. The weakness of this currency is intentional and orchestrated by the Vietnamese government, where authorities keep it low deliberately to help their exports achieve massive sales, noting that the Vietnamese economy is in a good state and growing rapidly, with a significant flow of foreign money and investments, yet they prefer keeping the Dong low to maintain the competitiveness of their products globally.
2- Iranian Rial (IRR)
• Currency value compared to the dollar: 1 dollar = 42,112 Iranian rials.
The Iranian Rial has been suffering since the collapse of the US-Iran nuclear deal in 2015, which coincided with the imposition of harsh economic sanctions. The Rial saw a sharp decline, then stabilized in recent years, then faced new pressures due to rising tensions in the Middle East following the Israeli aggression on Gaza Strip.
These factors can be summarized as follows:
– International economic sanctions.
– High inflation rates.
– Limited foreign investment opportunities.
– Restricted access to international trade.
1- Lebanese Pound (LBP)
• Currency value compared to the dollar: 1 dollar = 89,556 Lebanese pounds.
The Lebanese Pound is the weakest currency in the world, and it has remained at the top of this list or close to it for a few years. This is mainly due to the following factors:-
High inflation in the country.
– Economic recession.
– Political instability that has paralyzed the state for several years.
– War and Israeli aggression on Lebanon lately.
– The severe banking crisis since 2019 which coincided with a broad collapse of the financial system in the country.
The 5 weakest Arab currencies in 2025
Here is a list of the 5 weakest Arab currencies compared to the US dollar in 2025 based on exchange rates at the time of writing these lines as well as according to what the "xs.com" platform, specialized in currency rates, stated.
1- Lebanese Pound (LBP)
• 1 dollar = 89,556 pounds
2- Syrian Pound (SYP)
• 1 dollar = 11,000 pounds
3- Iraqi Dinar (IQD)
• 1 dollar = 1,310 dinars
4- Sudanese Pound (SDG)
• 1 dollar = 601 pounds
5- Yemeni Rial (YER)
• 1 dollar = 238 rials.
