Economy
A Look at Unstable Economies: What are the Weakest Currencies in 2025?
While people are mostly turning their heads at the most powerful currencies worldwide, it is always a good idea to glance at the weakest, to learn from their stories and mistakes. Every country worldwide wants to achieve economic stability, as this shows strength. Still, this objective has become challenging as we are dealing with a lot of problems worldwide, including political issues, inflation, and economic concerns.
Weak currencies have low buying power, and at the moment, the weakest currency in the world is the Lebanese pound. The Iranian Rial, the Laotian Kip, the Uzbekistani Som, the Syrian Pound, the Guinean Franc, and the Paraguayan Guarani follow this currency.
In this article, we will analyze the factors that can impact a currency’s strength and delve into the world’s weakest currencies. Keep reading to learn more.
What are the factors that impact the strength of fiat money?
Economic factors
Economic factors are among the most important aspects that can tell whether a currency is strong or weak. Ideally, a country should have a low inflation rate so that it can have better purchasing power over other currencies. On the other hand, countries with high inflation will experience a depreciation in their currencies, as this will also lead to high interest rates, which will impact the strength of a currency.
So, a combination of inflation, interest rates, and exchange rates determines whether a currency is strong or weak.
Political factors
Politics will also impact the strength or weakness of a digital coin. Unfortunately, many countries around the world are experiencing political issues, such as corruption or government changes, that can lead to currency devaluation. When important political events occur, like wars, citizens will be more inclined to exchange their money for another currency, which can create even more devaluation.
The collapse of the Lebanese pound is the result of poor political and economic management. Other countries dealing with weak currencies are North Korea and Iran, which have received many international sanctions over the years. Because of this, they have not been as open to global financial markets.
External factors
External factors can also determine whether a currency remains strong or weakens. When a high number of investors are interested in a coin, they can make it even stronger. Additionally, countries own a foreign exchange reserve, representing the holdings of a country of liquid assets and foreign currencies, which nations can use when they want to stabilize their currency. Of course, the ones with a high reserve can better protect themselves from financial shocks. The ones with a high reserve, like Switzerland and China, have the means to prevent currency depreciation.
On the other hand, those with little reserves, like Sri Lanka and Pakistan, are more inclined to devalue their currency. Additionally, a nation’s resources, such as gas, oil, gold, or agricultural goods, can also impact the value of a currency. In this regard, when the price of a commodity rises, a country can gain more revenue and strengthen the position of its currency. This also occurs in reverse.
What are the weakest currencies in the world?
Lebanese pound (LBP)
At the moment, the Lebanese pound is the weakest currency in the world. The fiat money of Lebanon has struggled to maintain a high position and has suffered significant depreciation. This is the result of massive economic challenges, political instability, hyperinflation, and crisis. The ones who have felt the disadvantages of this are the Lebanese, who now need to face the effects of currency devaluation. Corruption and the collapse of the banking sector are other reasons that have led to the devaluation of the currency.
Iranian Rial (IRR)
The second weakest currency title belongs to the Iranian rial, as a result of the heavy sanctions that were imposed on this country back in 2015. Then, the Iranian rial also depreciated because it went through new pressure due to the tensions in the Middle East. Because of the sanctions, Iran hasn’t been able to participate that much in international trade, and this is also accompanied by political instability and high inflation.
Laotian Kip (LAK)
The Laotian Kip was also a weak currency in 2015. It is in its current state because of many factors, among the most obvious ones being high inflation, foreign debt, and economic pressures. Trade imbalances, lack of industrialization, and limited foreign investment are other reasons for this.
Uzbekistani Som (UZS)
Uzbekistan has important gas and oil reserves, which is why some might say that this country has everything it needs for a high-value currency. However, this doesn’t apply to Uzbekistan, which has struggled to maintain a high currency value. Unfortunately, Uzbekistan didn’t recover from the Soviet era, and this can be seen in the high inflation and corruption.
Syrian Pound (SYP)
The Syrian pound has become a weak currency because of economic sanctions and the civil war, which has affected this country’s currency. Investors are not interested in investing in this currency, and residents are very inclined to move their money into other currencies to escape inflation.
Conclusion
Unfortunately, many countries around the world have unstable economies, which greatly impact currency devaluation. Unstable countries are synonymous with high inflation, which decreases a coin’s purchasing power. Unfortunately, not many countries recover from unstable economies, as this can create a vicious cycle that, in the end, will impact currency value.
Investors are less likely to risk putting their money in unstable economies, where countries are dealing with corruption and high inflation. The political instability can lead to even more losses in the value of a currency, and this has been seen in numerous examples over the years.
By Adedapo Adesanya
The World Bank has approved a $500 million facility for Nigeria to expand longer-term lending to small and medium sized businesses.
Approved under the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project, the package comprises a $400 million International Bank for Reconstruction and Development (IBRD) loan and a $100 million International Development Association (IDA) credit. Both IBRD and IDA are members of the World Bank Group.
The scheme will be implemented by the Development Bank of Nigeria (DBN), with credit guarantees provided through DBN’s subsidiary, Impact Credit Guarantee Limited (ICGL).
FINCLUDE is designed to address constraints faced by micro, small, and medium enterprises (MSMEs) in Nigeria which despite accounting for most businesses and nearly half of gross domestic product (GDP) face long-standing barriers to formal finance.
Fewer than one in 20 MSMEs have access to bank credit; loans are often short-term and costly; and collateral requirements exclude many viable firms. Women-led enterprises, which make up a substantial portion of MSMEs, are disproportionately affected, facing higher rejection rates and limited tailored products. Agribusinesses, central to food security and rural livelihoods, similarly struggle to obtain more extended‑tenor financing for equipment, processing, storage, and logistics.
However, FINCLUDE seeks to address these constraints by expanding access to affordable, longer-term finance and tailored solutions for segments with the most significant development impact.
Speaking on this, the World Bank Country Director for Nigeria, Mr Mathew Verghis, said, “FINCLUDE is about jobs, opportunity, and inclusion. By expanding access to finance for viable MSMEs—particularly women-led firms and agribusinesses—Nigeria can accelerate growth and deliver tangible benefits across communities nationwide.
“The project will make it easier for deserving small businesses to get the finance they need to grow and hire workers. With better support for lenders that practice inclusive finance and fairer, longer-term loans for entrepreneurs, we are backing the people who power Nigeria’s economy—especially women and those in agriculture.”
The FINCLUDE project will help to mobilise private investment and expand access to and usage of inclusive, innovative financial products for MSMEs nationwide.
Through DBN, the operation will strengthen the capacity of banks, including microfinance banks and non-bank financial institutions such as financial technologies (fintechs), to provide larger loans with more reasonable repayment periods, and—through ICGL—will scale partial credit guarantees so that lenders can extend credit to businesses they might otherwise consider too risky.
Targeted technical assistance will modernise loan appraisal by leveraging AI-enabled digital platforms to accelerate decision-making, improve data quality, strengthen impact measurement, and build capacity for both MSMEs and participating financial institutions.
According to the World Bank, a strong emphasis on inclusion will ensure that women-led businesses and agribusinesses benefit from these improvements.
Also commenting, Task Team Leader for FINCLUDE, Mrs Hadija Kamayo, said, “FINCLUDE will help to mobilize approximately $1.89 billion in private capital, expand debt financing to 250,000 MSMEs—including at least 150,000 women-led businesses and 100,000 agribusinesses—and issue up to $800 million in guarantees to catalyse lending.
“By extending the average maturity of MSME loans to about three years, it will help firms invest in equipment, factories, staff, and productivity, translating finance into jobs and growth.”
By Dipo Olowookere
The local stock market firmed up by 1.13 per cent on Friday as appetite for Nigerian stocks remained strong.
Investors reacted well to the 2026 budget presentation of President Bola Tinubu to the National Assembly yesterday, especially because of the more realistic crude oil benchmark of $64 per barrel compared with the ambitious $75 per barrel for 2025. This year, prices have been between $60 and $65 per barrel.
Business Post observed profit-taking in the commodity and energy sectors as they respectively shed 0.14 per cent and 0.03 per cent.
But, bargain-hunting in the others sustained the positive run, with the consumer goods index up by 3.82 per cent.
Further, the industrial goods space appreciated by 1.46 per cent, the banking counter improved by 0.08 per cent, and the insurance industry gained 0.04 per cent.
As a result, the All-Share Index (ASI) increased by 1,694.33 points to 152,057.38 points from 150,363.05 points and the market capitalisation chalked up N1.080 trillion to finish at N96.937 trillion compared with Thursday’s closing value of N95.857 trillion.
A total of 34 shares ended on the advancers’ chart, while 24 were on the laggards’ log, representing a positive market breadth index and bullish investor sentiment.
Austin Laz gained 10.00 per cent to close at N2.42, Union Dicon also jumped 10.00 per cent to N6.60, Tantalizers increased by 9.80 per cent to N2.69, Aluminium Extrusion improved by 9.78 per cent to N12.35, and Champion Breweries grew by 9.71 per cent to N16.95.
Conversely, Sovereign Trust Insurance dipped by 7.42 per cent to N3.87, Royal Exchange lost 6.84 per cent to trade at N1.77, Omatek slipped by 6.84 per cent to N1.09, Eunisell depreciated by 5.88 per cent to N80.00, and Eterna dropped 5.63 per cent to close at N28.50.
Yesterday, traders transacted 1.5 billion units worth N21.8 billion in 25,667 deals compared with the 839.8 million units sold for N32.8 billion in 23,211 deals in the preceding session, showing a surge in the trading volume by 76.61 per cent, an uptick in the number of deals by 10.58 per cent, and a shrink in the trading value by 33.54 per cent.
By Adedapo Adesanya
Three stocks stretched the bearish run of the NASD Over-the-Counter (OTC) Securities Exchange by 1.21 per cent on Friday, December 19, with the market capitalisation giving up N26.01 billion to close at N2.121 billion compared with the N2.147 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropping 43.47 points to 3,546.41 points from 3,589.88 points.
The trio of FrieslandCampina Wamco Nigeria Plc, Central Securities Clearing System (CSCS) Plc, and NASD Plc overpowered the gains printed by four other securities.
FrieslandCampina Wamco Nigeria Plc lost N6.00 to sell at N54.00 per unit versus N60.00 per unit, NASD Plc shrank by N3.50 to N58.50 per share from N55.00 per share, and CSCS Plc depleted by N2.91 to N33.87 per unit from N36.78 per unit.
On the flip side, Air Liquide Plc gained N1.01 to close at N13.00 per share versus N11.99 per share, Golden Capital Plc appreciated by 70 Kobo to N7.68 per unit from N6.98 per unit, Geo-Fluids Plc added 39 Kobo to sell at N5.50 per share versus N5.11 per share, and IPWA Plc rose by 8 Kobo to 85 Kobo per unit from 77 Kobo per unit.
During the trading day, market participants traded 1.9 million securities versus the previous day’s 30.5 million securities showing a decline of 49.3 per cent. The value of trades went down by 64.3 per cent to N80.3 million from N225.1 million, but the number of deals jumped by 32.1 per cent to 37 deals from 28 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc finished the session as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and MRS Oil Plc with 36.1 million units traded for N4.9 billion.
The most active stock by volume on a year-to-date basis was still InfraCredit Plc with 5.8 billion units worth N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.7 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn