Research and Analytics
Research and Analytics
Faced with an unprecedented shock of collapsing global demand and commodity prices, capital outflows, major supply chain disruptions and a generalized drop in global trade, many emerging markets and developing economies’ (EMDEs) currencies have weakened sharply. Will these currency movements support the recovery of these economies?
Inflation rate in Venezuela has skyrocketed, moving an average figure of 21.07% in 2012 to as high as 65,374.08% in 2018 before moderating to c.15,000% in 2020. Hence, the venezuelan Bolivar has lost its value, causing more money to chase fewer goods – imagining buying a roll of toilet paper with 2.6 million Venezuelan Bolivars in 2018.
Foreign exchange is the exchange of one currency for another, or the conversion of one currency into another currency. It also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as “forex” and occasionally as FX. Foreign exchange transactions encompass everything from the conversion of currencies by a traveler at an airport kiosk to billion naira payments made by corporate giants and government for goods and services purchased overseas.
