Movement Continues in the Foreign Exchange Market
This movement is caused by political events, hyper-inflation, rebounding copper prices, and more. Below are AIRINC’s summaries of the rate changes over 3.5% taken from our recent review. For up-to-date figures, please reach out to your client engagement representative or click here to reach our inquiries team now.
Currencies Losing Value against the USD:
AFN - Afghan Afghani
The Afghan afghani depreciated since the Taliban’s takeover of the country. Afghanistan does not have access to IMF resources or its Central Bank reserves located in the United States. This contributed to a lack of money transfers and inflation of goods. Similar to Malaysia and Syria, Afghanistan’s economy is expected to shrink due to the change of governing bodies.
CLP – Chilean Peso
The Chilean peso has received downward pressure due to increasing prices of consumer goods. Cost of living continues to be of concern as the country recovers from the COVID-19 pandemic. The Bank of Chile is expected to increase rates again before the end of the year.
VES – Venezuelan Bolivar
The bolivar continues to suffer from hyperinflation. The Venezuelan Central Bank stated that six zeroes will be cut from the bolivar on October 1. Food prices continue to rise, and many items remain priced in USD since exchanging in bolivar is primarily done electronically.
Currencies Gaining Value against the USD:
SCR – Seychelles Rupee
Tourism increased in the Seychelles as it became a popular destination for expats from countries that require a two-week quarantine. Due to rising prices of commodities, the Central Bank encouraged retailers to lower the prices of goods to better reflect the country’s economic condition.
ZMW – Zambian Kwacha
The kwacha appreciated sharply due to rebounding copper prices. Zambia’s exports are primarily dependent on copper, which can be volatile and heavily impacts the kwacha as seen over the past month. Newly elected President Hichilema plans to review mining tax policy to further increase investment in the sector. Zambia and the IMF are near to closing on a deal to access new financing.
How can you stay up-to-date on currency changes?
For up-to-date figures, please reach out to your client engagement representative or click here to reach our inquiries team now.