International News

Severe Depreciation Of Currencies In Many Countries

Author : Bozhou Marine

Update time : 2024-03-04 11:54:56

Since the beginning of this year, due to various factors such as inflation and high debt, the currencies of many countries have experienced serious depreciation.

Egypt
The Egyptian pound has experienced three depreciations of 14%, 19% and 17% since 2022, setting a record for global currency depreciation. The market believes that it will depreciate again in 2024.
Societe Generale believes that Egypt will fix the new exchange rate at a range of 40 to 45 Egyptian pounds to the dollar. That means that the Egyptian pound will depreciate by another 25% to 30%, the largest depreciation since 2016.

Türkiye
Recently, Türkiye's exchange rate has continued to fall.
The exchange rate of the US dollar against the new Turkish lira has risen to 6.8234 from 3.7912 on January 1 this year, an increase of 80.0%.
Turkey's high inflation rate, high foreign debt, high government deficit and other macroeconomic problems are the fundamental reasons for its depreciation. In addition, the diplomatic dispute with the United States caused the problem to suddenly erupt on a large scale, and the lira exchange rate continued to dive under the influence.
Turkey's exchange rate has continued to fall and inflation has hit a ten-year high, making Turkey the cheapest place in the world to buy luxury goods. A purchasing agent in Turkey said that some luxury goods were snapped up by purchasing agents and tourists before their prices could be adjusted.

Zimbabwe
So far in 2024, the new Zimbabwean dollar has fallen by nearly 50%.
Due to continued exchange rate fluctuations, about 80% of transactions in the Zimbabwean market are currently settled in US dollars, and most retail supermarkets have also changed their prices to US dollars.

lebanon
On February 1, the Central Bank of Lebanon adjusted the official fixed exchange rate of the Lebanese pound to the US dollar from 1507.5:1 to 15,000:1. This is also the first adjustment made by Lebanon in the 25 years since it implemented the fixed exchange rate policy of pegging the Lebanese pound to the US dollar. After adopting the new exchange rate, the Lebanese pound devalued by 90%, but there is still a large gap between the new official fixed exchange rate and the black market exchange rate of the Lebanese pound against the US dollar.

Nigeria
The currencies of at least 10 African countries have depreciated by more than 10% against the US dollar in the past six months. The naira, the currency of Nigeria, the region's largest economy, has depreciated by nearly 70% so far this year, making it the worst-performing currency in the world.
As import prices of goods soared, domestic inflationary pressures further aggravated. At the same time, as the local currency depreciates, repaying dollar debt becomes more expensive, creating a vicious cycle.

www.bozhou-int.com | Marine Light

Previous : Global Oil Production Cuts

Next : Many Countries Ban The Sale Of E-Cigarettes

The yen exchange rate hits a 34-year low

Apr .12.2024

According to a report from Japan Jiji News Agency on the 11th, the yen exchange rate fell 1% in the New York foreign exchange market on the 10th, falling below the "warning line" of 152, and once fell to 153.24 yen, the lowest level since July 1990.

The Price of Cocoa Rising

Apr .03.2024

This week, cocoa futures prices in New York and London hit record highs.

Dali Ship Crash Into Francis Scott Key Bridge

Mar .29.2024

In the early hours of Tuesday Eastern Time, a container ship named "Dali" collided with the "Francis Scott Key" bridge in Baltimore, USA, causing the bridge, which is about 2.5 kilometers long, to collapse within seconds.

Severe Congestion In South African Ports

Mar .25.2024

In recent months, with the sharp increase in the number of ships, the already existing capacity problems in ports along the South African route have become even more severe.