Currency Update: July 2025

In July 2025, exchange rates were largely influenced by rising export prices, seasonal factors, and monetary policy decisions. The Zambian kwacha appreciated, driven by increasing copper prices. In contrast, the Argentine peso depreciated, partly due to seasonal effects such as the end of the harvest season. Meanwhile, the Venezuelan bolívar continued to depreciate, reflecting the ongoing political and economic repercussions of the 2024 decision to unpeg the currency from the U.S. dollar.

Global Currencies Gaining Value Against the U.S. Dollar:

ZMW - Zambian Kwacha

The Zambian kwacha has appreciated in large part due to a surge in copper prices, which have risen more than 10%. In 2022, copper accounted for 69% of Zambia's total exports. As Africa’s second-largest producer of copper, Zambia is expected to continue appreciating as copper prices remain elevated.

Global Currencies Losing Value Against the U.S. Dollar:

VES - Venezuelan Bolivar

The Venezuelan bolivar continues to perform poorly following the abandonment of the peg last year. In response to the bolivar’s decline, the current administration has escalated efforts to control the public narrative by arresting economists who publish exchange rate data and minimizing transparency. This has increased the distrust from investors and the public regarding the official rate of the currency, allowing for a growing gap between it and the parallel rate.

ARS - Argentine Peso

The Argentine peso depreciated over the last month due to a combination of seasonal changes, political factors, and intentional monetary policy. Since the beginning of his term, President Milei has been working on implementing new economic policy to stabilize the peso. However, factors such as the corn and soy harvest ending, upcoming midterm elections, and the resulting investor uncertainty have resulted in a moderately weakened peso. In addition, the central bank’s policy of managed depreciation, allowing for a gradual decline in the peso’s value, is an intentional part of the current monetary strategy.

Help your assignees understand the impact of exchange rate changes and inflation. Remind them that:

• Assignees are expected to contribute from salary; COLA makes up only a portion of total host goods and services expenditures
• Changes in exchange rates and relative (host compared with home) inflation impact total host goods and services expenditures (home salary contribution plus COLA), but only COLA flexes up or down to ensure the assignee has sufficient funds to support the host goods and services expenditure. This means a 10% exchange rate change does NOT equal a 10% change in COLA. Percentage changes in COLA will be greater than the percentage changes in inflation and/or exchange rate. However, COLA changes can be easily reconciled by comparing the change in the total host goods and services expenditure

Read more here.

COLA Change Report

The COLA Change Report is a transparent personalized report that reflects changes in an assignee’s specific COLA (Cost of Living Allowance) amount and explains the reasons behind the change.

AIRINC has found that the best change communications are personalized, visual, and conclusive, and this has been incorporated into the one-of-a-kind AIRINC COLA Change Report, included in the International Assignment Calculator.