Losses and Gains in the Foreign Exchange: September 2021
This month’s changes resulted from specific economic niches ranging from rising prices in raw resources, political instability, and an increase in tourism. COVID-19 continues to impact the economic future of certain nations as travelling restrictions are set between countries. Below are AIRINC’s summaries of the rate changes above 3.5% taken from our review last week.
Currencies Losing Value against the USD:
MMK – Myanmar Kyat
Myanmar’s currency depreciated due to civil unrest and political instability. Unemployment, the cost of goods, and demand for the U.S. dollar increased significantly after the military seized power. Exports stopped and a sanction has prevented U.S. currency from entering the country. Many multinational corporations exited the country resulting in a decrease in foreign investment. Under the direction of the military regime, the Central Bank removed a limitation with currency trading, which allows currency exchanges at a wider spectrum of rates.
Currencies Gaining Value against the USD:
SCR – Seychelles Rupee
The increase of tourism to the Seychelles has helped the country decrease its budget deficit for 2021. Revenue from the tourism sector exceeded expectations in the first half of 2021. Additionally, the government received its first loan disbursement from the IMF following the approval of its economic reform program. Domestic growth expectations were shattered, and projections were updated.
ZMW – Zambian Kwacha
The Kwacha continues its appreciation due to increased confidence from investors after Hakainde Hichilema won the presidential election in August. There are expectations that he will help the country improve its budget deficit and public debt. There is concern over increasing food prices, but future economic outlook is positive.
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