The last month of 2024 had few major changes. Each of these countries had domestic troubles regarding debt, inflation, or foreign reserves. Inflation continues to affect these negatively as their currency depreciates. Each respective government made considerable decisions to prevent further depreciation, for example, changing the bank deposit ratios in Zambia, reaching out to the IMF, or cutting government spending.
Currencies Losing Value Against the U.S. Dollar:
ZMW – Zambian Kwach
Falling metal prices continue to negatively impact the kwacha. Delays in debt restructuring also contributed to the currency’s value. Inflation has risen as an effect of the currency’s depreciation as well. The Bank of Zambia increased the statutory reserve ratio for local and foreign currency deposits and increased interest rates to hinder the currency’s decline.
CDF – Congolese Franc
Poor government spending, unemployment, and inflation are several of the problems that plague the Congolese economy. Many of these were negatively impacted by the Russian-Ukraine conflict and have not improved. The country’s account deficit has also risen due an unexpected increase of imports.
MWK – Malawian Kwacha
The Malawian kwacha depreciated due to falling foreign reserves. The extended credit facility loan from the IMF will help Malawi to address other economic challenges including rising inflation and devastating natural disaster damages.
ARS – Argentine Peso
The peso was devalued greatly in mid-December by the Argentinian government. President Javier Milei wishes to address the fiscal deficit directly and immediately. Along with the currency’s devaluation, the government announced cuts in energy and transportation subsidies, government ministries, and reduction in payments to Argentina’s provinces. The peso’s devaluation caused fuel prices to spike and Argentina’s future export prices for crops to fall.
How do currency changes affect compensation?
For up-to-date figures, please reach out to your AIRINC representative or click here to reach our inquiries team now.
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