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June currency review

On 1st June, Malawi's central bank heavily devalued the kwacha to try to address serious shortages of hard currencies. With inflation already high, mainly due to global prices for energy and foodstuffs, inadequate access to foreign currencies is causing scarcity of imported goods and consequently higher prices for them.

Meanwhile, recent slumps in the Laos kip and Zimbabwe dollar continued in June, as both countries' economic crises deepened. The Brazilian real and Chilean peso, both of which have made significant gains in recent months, were pulled back as global prices for their main commodity exports fell due to the world's economic slowdown.

Countries experiencing largest currency losses in June

Country

Currency code Movement v EUR
30 May - 4 Jul 2022 (%)
Inflation
(%)
Brazil BRL -8 11.9
Chile CLP -9 12.5
Laos LAK -10 12.8
Malawi MWK -18 19.1
Zimbabwe ZWL -18 131.7

The Armenian dram continued to strengthen in June as the country's improving economic outlook was confirmed by a good report from the IMF, while interest rates are also rising. The remarkable rebound of the Russian rouble also persisted. However, the strongest currency in the world in June was the Tajikistan somoni, which made substantial gains against all other currencies. Its value tends to be engineered by the central bank, which probably hopes that stronger exchange rates will dampen inflation.

Countries experiencing largest currency gains in June

Country

Currency code Movement v EUR
30 May - 4 Jul 2022 (%)
Inflation
(%)
Armenia AMD +12 9.0
Maldives MVR +10 2.5
Russia RUB +19 17.1
Tajikistan TJS +21 7.5

In other currency news, Sierra Leone redenominated the leone on 1 July, by striking three zeros off its nominal value.

Finally, here is this month's selected currency movements table:

Selected currency movements (v EUR)
Country Currency code % movement to 4 July 2022 v EUR since: Latest official annual inflation (%)
    30/5/22
(1 month)
4/4/22
(3 months)
3/1/22
(6 months)
5/7/21
(12 months)
 
Argentina ARS -2 -7 -11 -13 60.7
Australia AUD -2 -4 +2 +3 5.1
Brazil BRL -8 -6 +13 +8 11.9
Canada CAD +1 +3 +6 +8 7.7
Chile CLP -9 -10 0 -10 12.5
China CNY +3 0 +3 +9 2.1
Egypt EGP +2 +3 -10 -6 13.2
India INR +1 +2 +2 +7 7
Indonesia IDR 0 +2 +3 +9 4.3
Japan JPY -4 -4 -8 -7 2.4
Kenya KES +2 +3 +4 +4 7.1
Korea Republic KRW -1 -1 0 -1 6
Mexico MXN 0 +4 +9 +10 8
Nigeria NGN +3 +6 +7 +11 18.2
Norway NOK -2 -7 -4 -1 6.3
Philippines PHP -3 -1 +1 +1 5.4
Poland PLN -3 -1 -2 -4 13.9
Russia RUB +19 +38 +33 +34 15.9
Singapore SGD +1 +3 +5 +9 5.6
South Africa ZAR -2 -6 +5 0 6.5
Sweden SEK -2 -4 -5 -6 7.3
Switzerland CHF +3 +2 +3 +9 3.4
Turkey TRY 0 -8 -14 -41 78.6
United Kingdom GBP -2 -2 -3 0 9.1
United States of America USD +3 +6 +8 +12 8.6
Venezuela VES -6 -17 -10 -32 167.2
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