Recession affects the country’s economic growth, and the foreign exchange market is no exception. During the recession, interest rates will fall, devaluing foreign capital. The currency’s value drops when foreign capital is scant, and interest rates are low. Here is a more comprehensive view of the world’s weakest currencies, based on their exchange rate with USD and INR. Before diving into the list, it’s essential to understand that currency value is influenced by numerous factors including political stability, inflation rates, and economic policies. A lower currency value doesn’t necessarily indicate a poor economy but often highlights specific economic challenges or strategies.

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This happened particularly because Vietnam switched from a government-controlled economy to a market-based one, which took time to settle. The nation suffers from widespread corruption and political unrest,which has made its currency weak. Despite being an oil-, gold- and coffee-rich country, Uganda and its currency have been hobbled by a record of unstable economic growth, sizable debt and political unrest.

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The Paraguayan Guarani is in eighth place, with INR 1 equal to 92 PYG. Paraguay faces issues like high prices, poverty, and unemployment, which have made the guarani weak. While farming has improved, the economy is still struggling immensely.

• In conclusion, this list of the top 10 weakest currencies in the world reveals the many challenges these economies face.
• Exchange rates vary across banks, private money changers, and online platforms.
• The shilling has been weak for many years, particularly because of the major issues during Idi Amin’s rule in the 1970s.
• The Indian economy has averaged a growth rate of 6.13% between 2006 and 2023, which makes it one of the fastest growing in the world.
• Currency values keep on fluctuating due to factors like inflation, political stability, and the nation’s governance.

The currency has been weak due to years of political problems, corruption, and slow growth. Even though Guinea has lots of valuable natural resources, like minerals, the country hasn’t been able to develop other industries. This has kept the value of its currency low, and ongoing government issues are restricting its progress. Just west of Vietnam, Laos and its kip have been hit by sluggish economic growth and crushing foreign debt obligations. Inflation, including higher prices for oil and other global commodities, has been worsened by declines in the kip—and, in turn, is helping push the currency even lower. Fluctuating exchange rates give investors opportunities to profit from trading in foreign currencies.

The Iranian Rial is presently the lowest currency in the world because of economic sanctions, inflation, and political unrest in that country. The Dong is one of the cheapest currencies in the world and the Vietnam currency. Although the latter has had fast economic growth in the last few years, the dong was only relatively weak, mainly due to the kind of trade policies of the country and its controlled monetary system. Over the years, its value has dramatically declined due to ongoing political instability, especially after the 1979 Islamic Revolution. The imposition of international sanctions related to Iran’s nuclear program has further worsened the situation.

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The Laotian Kip has long held its position among the weakest currencies in Asia, with the 2025 exchange rate standing around 1 INR ≈ 250 LAK. Laos remains largely agrarian, with limited industrial capacity and a strong dependency on neighbors like China and Thailand. Since the financial crisis in 2019, followed by the catastrophic Beirut explosion in 2020, Lebanon has experienced hyperinflation, leaving salaries and savings nearly worthless in real terms. The central bank has struggled to maintain foreign reserves, and the black market dominates currency exchange.

Vietnamese Dong (VND)

The nation’s dependence on mining and agriculture, along with minimal economic diversification, has maintained Leone’s value at extremely low levels. Factors contributing to its devaluation include its decreasing foreign exchange reserves. Indonesia is heavily dependent on the export market, and with the fall in the cost of commodities, the currency value has further devalued. Although the government embarked on forming a market economy, it still has a long road to walk.

The investment might increase the domestic currency value and boost foreign capital. Government debt or public debt is government-owned debt and a public liability. If one country faces debt, the chances of having more money are slight, with the potential of causing inflation. Foreign investors would be in two minds about investing considering the high inflation, which would depreciate weakest currency in the world to inr the currency’s value. The Paraguayan economy is experiencing a terrible economic downturn due to high inflation, unemployment, increased poverty, and corruption, hurting the currency’s value.

• Paraguay faces issues like high prices, poverty, and unemployment, which have made the guarani weak.
• But, can you imagine a country where your INR 2,000 can make you a millionaire, or INR 500 can be worth somewhere in a lakh?
• The Laotian Kip is low-valued owing to Laos’s small industrial base, high inflation, and reliance on agriculture and hydropower exports.
• If you’re travelling abroad, consider getting a prepaid Forex card from your bank or an authorized Forex agency.

I recommend every prospective student or traveler going aboard to use Bookmyforex and experience their amazing service. The Laotian kip is the fourth weakest currency in the world in 2024. Laos has a very small economy and depends a lot on foreign help and investment. But with projects like a new railway to China, things might improve.

In the late 80s and early 90s, due to political disabilities, the public confidence in Riel was led by foreign investment in the Country. At its highest, the US dollar accounted for 90 percent of the money in circulation in the Country. In the past two decades, the National Bank of Cambodia has taken several measures, which led to an increase in the circulation of Riel by 80 percent. In the vast and complex world of global finance, currencies play a crucial role in shaping economies.

International transfers

Vietnam has historically operated under a centralised economy, and while efforts have been made to establish a market economy, there is still a long way to go. Currently, the Vietnamese Dong is experiencing a considerable devaluation. Nevertheless, it is possible to identify specific national currencies that have recently experienced significant devaluation.

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Despite Guinea’s rich mineral resources, particularly bauxite, the country remains underdeveloped, with high levels of corruption, political unrest, and poor infrastructure. China’s second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern. Ripple (XRP) is gaining momentum and closing in on its all-time high of $3.66 on Monday. The bullish outlook is supported by institutional demand, which continues to drive the expansion of spot and derivatives markets. Gold prices began the week on a high note, briefly surging over the important $3,400 mark per troy ounce on Monday.

The average daily expense for a budget traveler in Zimbabwe is around ₹ 2,800 to ₹ 5,600, which includes accommodation, food, transportation, and sightseeing. Flight Tickets and Daily Expenses – The average range of price of flight tickets for a roundtrip from India to Laos is around ₹ 25,000 to ₹ 40,000. The average daily expense for a budget traveler in Laos is around ₹ 700 to ₹ 1,100, which includes accommodation, food, transportation, and sightseeing. Flight Tickets and Daily Expenses – The average range of price of flight tickets for a roundtrip from India to Vietnam is around ₹ 15,000 to ₹ 25,000. The average daily expense for a budget traveler in Vietnam is around ₹ 1,500 to ₹ 2,200, which includes accommodation, food, transportation, and sightseeing.