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 Aduragbemi Omiyale
The N21.5 billion rights issue of Eterna Plc has commenced, with shareholders encouraged to participate in the exercise through the NGX Invest platform.
The rights issue began today, Monday, January 12, 2026, and is expected to close on Wednesday, February 18, 2026, a notice signed by the company secretary, Mr David Edet, disclosed.
Proceeds from the exercise will be deployed to support several strategic initiatives, including the expansion of Eterna’s retail network, upgrading of its lubricant blending plant, enhancement of LPG retail assets, acquisition of commercial delivery assets, expansion of aviation fuelling operations, and investments in ESG-related projects aligned with the company’s sustainability objectives.
Business Post reports that a total of 978,108,485 ordinary shares of 50 Kobo each are available for grabs at the price of N22.00 each.
The stocks are being offered to existing shareholders on the basis of three new ordinary shares for every four ordinary shares held as of November 27, 2025.
Apart from buying equities of the rights issue via the NGX Invest platform, shareholders can also purchase by completing the paper participation form.
However, completed participation forms, together with payment or evidence of payment for the full amount payable, must be submitted no later than Wednesday, February 18, 2026, to any of the issuing houses or receiving agents listed in the rights circular.
The rights issue provides existing shareholders with the opportunity to increase their equity holdings in the organisation, thereby reinforcing their participation in and support for Eterna’s long-term growth strategy.
The firm disclosed in the disclosure filed to the Nigerian Exchange (NGX) Limited that the rights issue received the approval of the Securities and Exchange Commission (SEC).
It advised shareholders “to contact their stockbrokers and/or financial advisors for further information regarding the offer.”
By Adedapo Adesanya
The National Bureau of Statistics (NBS) said it would release two inflation readings for December after a methodological change led the headline rate to more than double.
This was disclosed during a virtual stakeholders engagement convened by the NBS and the Nigerian Economic Summit Group (NESG) on Monday.
The stats office explained that the expected spike in inflation is driven by technical base effects linked to the recent rebasing of the inflation series rather than changes in economic fundamentals.
According to the Statistician-General and chief executive of the NBS, Mr Adeyemi Adeniran, the inflation data due on Thursday, January 15 are projected to show an artificially spiked rate of 31.2 per cent last month, from 14.5 per cent in November. However, to provide transparency, the agency will take the unusual step of publishing both the headline rate that reflects economic fundamentals and the inflated figure.
Mr Adeniran explained that the projected December spike stems from the rebasing of the Consumer Price Index (CPI) which adopted 2024 as the new base year after a 15-year gap from the previous 2009 base.
He emphasised that base effects are a common feature of statistical practice, particularly in index-based measurements.
“Following the rebasing exercise and the methodology adopted for December 2025, a significant artificial spike in the inflation rate is expected, as some analysts have already projected. This spike arises from the base effect, with December 2024 equated to 100 following the rebasing.
“Base effects are common in statistical practice, particularly when comparing data across periods with unusually high or low prices. They are neither unexpected nor unusual.
“However, when such effects occur, especially when they are artificial and arithmetic rather than reflective of structural changes in the economy, it is essential to clearly communicate and explain them to users,” he stated.
“Transparency requires that we provide a clear picture of actual price changes rather than simply reporting an artificial spike that does not reflect economic realities. This is why we convened this meeting to inform our critical stakeholders and users of our data,” he added.
By Adedapo Adesanya
Terrahaptix, a Nigerian autonomous systems startup, has raised $11.75 million in a round that will see it boost drone manufacturing to tackle violent extremism spreading across Africa.
The funding round was led by 8VC founded by the co-founder of Palantir Technologies Inc., Mr Joe Lonsdale. Other investors include Valor Equity Partners, Lux Capital, SV Angel, Leblon Capital GmbH, Silent Ventures LLC, Nova Global and angel investors including Mr Meyer Malka — the managing partner of Ribbit Capital.
Terrahaptix, founded by Mr Nathan Nwachukwu and Mr Maxwell Maduka, will use the new funding to expand Terra’s manufacturing capacity as it expands into cross-border security and counter-terrorism.
The company based in Abuja produces long- and mid-range drones, autonomous sentry towers and unmanned ground vehicles to help secure infrastructure assets valued at about $11 billion across Africa, including hydropower plants in Nigeria, as well as gold- and lithium-mining operations in Ghana.
In June last year, the firm beat an Israeli company to secure a $1.2 million security contract to deploy AI-powered drones and sentry towers at two hydroelectric power plants in Nigeria, awarded by a private security firm, Nethawk Solutions.
According to Mr Nwachukwu, the CEO of Terrahaptix, the rising spate of insecurity must be tackle as the continent continues to industrialize its economy.
“Africa is industrializing faster than any other region, with new mines, refineries and power plants emerging every month,” he said, “But none of that progress will matter if we don’t solve the continent’s greatest Achilles’ heel, which is insecurity and terrorism.”
“Our mission is to give Africa the technological edge to protect its industrial future and defeat terrorism.” Mr Nwanchuku added.
On his part, Mr Maduka, the company’s co-founder and CTO, also reinforced the company’s commitment to the continent by saying, “This is African technology, built by African engineers, for African infrastructure. We are creating skilled jobs, building advanced manufacturing capacity, and ensuring the intellectual property behind Africa’s security stays on the continent.”
The need for security has risen in recent years as groups such as Islamic State and al-Qaeda are gaining ground in Africa, converging along a swathe of territory that stretches from Mali to Nigeria.
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