In November 2024, exchange rates were affected by government initiatives, conflict, rising prices, and high foreign debt. A new government initiative in Venezuela has caused the bolivar to depreciate. Conflict in Sudan has led to an increase in prices and a decrease in revenue for South Sudan, resulting in a depreciation of its currency. Foreign debt and high inflation have continued to depreciate the Surinamese dollar.
Global Currencies Losing Value Against the U.S. Dollar:
VES– Venezuelan Bolivar
The Venezuelan bolivar has experienced significant depreciation over the past month as part of a government initiative to promote the use of the bolivar over the US dollar. This is acknowledged as a risky strategy, and the results remain to be seen. The President, set to begin his third term in January after a highly contested election, previously claimed that his administration had successfully reduced inflation. However, his recent policy shifts have led to rising domestic prices while making imports more affordable. Analysts predict that the bolivar will continue to depreciate for the rest of the year.
SSP – South Sudanese Pound
The ongoing conflict in Sudan has contributed significantly to the depreciation of the South Sudanese pound. The conflict has disrupted food supply chains, resulting in increased costs. The influx of refugees into South Sudan has further strained resources, necessitating increased expenditure on humanitarian relief. Consequently, the combination of a declining economy, reduced revenue and foreign currency, and heightened spending requirements has led to the depreciation of the South Sudanese pound. Further, the damage to the oil pipeline, which transports 70% of South Sudan's oil production through Sudan, has significantly reduced oil exports. This reduction has led to a substantial decline in foreign exchange inflows and revenue.
SRD – Surinamese Dollar
The Surinamese dollar continues to depreciate as foreign debt and inflation remain high. As a new member of the International Development Association, Suriname has committed to restructuring its debt. The country also recently secured a deal with Total Energies for offshore oil drilling, with expectations that they will see big profits and a considerable economic boom soon.
Every month we provide updates on currency via our blog AIRSHARE.
In 2024, global currency markets were influenced by various factors, including International Monetary Fund (IMF) arrangements, economic growth, interest rate adjustments, and political developments. We will continue to update you in 2025!
For additional insights on inflation and exchange rate fluctuations, check out our quarterly online report, Data Points. Next release coming in early January!
