This month’s currency changes can be attributed to political uncertainty and foreign reserves changes.
This month’s currencies have been affected by a wide variety of reasons both domestically and internationally.
Food shortages and gas prices continue to negatively impact countries’ abilities to help their people obtain basic needs.
The U.S. Dollar has risen in value comparably to other major currencies including the GBP and EUR causing many smaller economies to be affected.
Many countries have been negatively impacted by the Russian-Ukraine conflict.
In late February 2022, Russia invaded Ukraine by means of airstrikes and infantry. This major conflict has driven several countries’ currencies to depreciate as political stability decreased in the area.
Many of January’s exchange rate fluctuations result from interest rate changes during the latter half of 2021.
Inflation remains to be the consistent driver of exchange rates this month along with a few new factors.
Many countries that were maintaining steady interest rates have decided to increase them due to rising consumer prices.
This month’s changes resulted from specific economic niches ranging from rising prices in raw resources, political instability, and an increase in tourism. COVID-19 continues to impact the economic future of certain nations as travelling restrictions are set between countries.