In April 2025, global currency trends were influenced by a mix of political uncertainty, central bank actions, and shifting investor sentiment. The Swedish krona and Swiss franc both strengthened, fueled by rising market confidence and their roles as safe-haven currencies. Meanwhile, the Argentine peso and Venezuelan bolivar experienced significant declines as domestic policy shifts and reduced oil revenues weighed on their economic outlooks. The Libyan dinar also saw a notable devaluation amid escalating public spending and political unrest. These currency movements reflect the ongoing impact of global macroeconomic developments on exchange rate volatility.
Global Currencies Gaining Value Against the U.S. Dollar:
SEK - Swedish Krona
The Swedish krona strengthened this month amid an improving domestic economy and rising political tensions in the United States. Recent interest rate cuts by Sweden’s central bank have brought rates to what economists consider a neutral level. In contrast, uncertainty surrounding tariffs and inflation in the U.S. has fueled expectations that the Federal Reserve may cut interest rates—further boosting the krona’s strength against the U.S. dollar. The krona’s improved performance has also attracted increased investment, which is expected to continue supporting the currency.
CHF - Swiss Franc
The Swiss franc gained value following the announcement of new U.S. import tariffs. Widely regarded as a safe-haven currency, the franc tends to retain or increase its value during periods of global market instability. As uncertainty around trade policy grows, investors have shifted to safer assets like the Swiss franc, contributing to its recent appreciation.
Global Currencies Losing Value Against the U.S. Dollar:
ARS - Argentinian Peso
The Argentine peso has recently depreciated, largely due to the government’s decision to partially float the currency and remove some of the country’s most restrictive currency controls. This policy shift follows a loan granted by the International Monetary Fund. While the move has caused a short-term drop in value, the long-term goal is to improve the peso’s overall performance. Whether this objective will be realized remains uncertain.
LYD - Libyan Dinar
The Libyan dinar was devalued by 13.3%—its first adjustment in several years—driven by increased public spending from rival governments within the country. In addition to ongoing political unrest, the currency’s decline is linked to a steep reduction in oil revenues, largely due to high U.S.-imposed tariffs.
VES - Venezuelan Bolivar
The Venezuelan bolivar has experienced a sharp decline, primarily as a result of U.S.-imposed tariffs. With oil being one of Venezuela’s primary exports and the U.S. a major buyer, the country’s oil revenues have plummeted. As a result, the economic outlook remains bleak. The Maduro government has declared a state of economic emergency in response to the crisis.
Exchange Rate Changes:
Every month we provide updates on currency change of over 5% via our blog AIRSHARE. For additional insights on inflation and exchange rate fluctuations, check out our quarterly online report Data Points. We include selected 3-month Exchange Rate fluctuations of more than 5%.
What is the Cost of Living Allowance (COLA)?
The Cost of Living Allowance (COLA) — also known as Goods and Services Differential, Commodities and Services Allowance, or Cost of Living Index – is a critical element of international assignee pay. It is the allowance you provide and update over time to protect assignees against excess goods and services costs in a host location. AIRINC’s approach to COLA is holistic, we believe high quality data and support go hand in hand. We provide COLA based on robust methods, calculated by our in-house research team. You also receive access to dedicated experts who proactively and promptly support your COLA needs.
Your COLA Options
It is important to tailor your COLA to your policy goals. We make it easy for you to select your desired subsidy level and ensure the allowance is aligned to your guidelines. Available for over 150 home countries and over 1000 host cities, the COLA can be configured to a set of pre-selected criteria.
How we calculate COLA
Our goal: To capture the reality of assignees’ spending needs, accurately measuring cost differences between the host and home locations. We believe our approach is closely aligned to the way assignees actually consume goods and services, delivering you a more accurate and defensible result. AIRINC is unique in that we measure cost differences arising from both price differences as well as the shopping adaptations assignees make. Our in-house researchers canvass thousands of prices on a continuous basis to capture the pure price differences in a large market basket of goods and services.
They also research circumstances in each host location, adjusting their calculations when local conditions require assignees to adapt. Examples of adaptations include considerations for local commuting patterns (e.g. driving in Houston vs. using public transportation in Singapore), accessing child-care (babysitters in lieu of family support), and drinking water (using purified water when tap water is not advised). Capturing price differences in this way provides you with a COLA that reflects your assignee’s actual experience, giving you the comfort that your employees are supported properly.
