5 Currencies With the WORST Performance in 2016
Reported from Investopedia.Com, this is the version of Investopedia for the currency with the worst performance of 2016.
1. Venezuelan Bolivar.
Venezuela has been on a severe crisis track since a few years ago, and it gets worse as oil prices begin to crumble. Venezuela relies heavily on oil exports so the destruction of oil prices also means the destruction of the Venezuelan currency. Reported from money.cnn.com that the price of 1 dollar Bolivar lower than 1 cent USD. 1 USD can buy 5 gallons of gas in Venezuela.
The International Monetary Fund (IMF), according to Investopedia, projected the inflation rate in Venezuela in 2016 to rise from 481% to 700%, which is projected to be much higher by 2017 to 1.642%. By 2015, 1 USD is worth 900 Bolivars, if the IMF projection really happens, then 1 USD will be worth 90,000 – 100,000 Bolivars by the end of 2017.
2. Nigerian Naira.
Nigeria, as the country with the largest economy in Africa also feel the bitterness of falling oil prices. Quoted from bbc.com, that when oil prices fall, Nigeria does not devalue the currency as the minyka countries like Russia do. Nigeria wants businesses in Nigeria to make things that they can not import and diversify from the oil industry. As a result of this policy led to a lack of raw baham, machine spare-parts and supermarket products.
In June 2016, Nigeria finally made a policy that let its currency floating against the USD. According to Investopedia, within 6 weeks of enacting the policy, the Naira currency falls to the price level as of this writing issued 1USD = 314 NGN range. But the worrying thing is that Nigeria has a very bad history of inflation.
3. Egyptian Pound.
If Nigerian Naira had collapsed in June, the Egyptian currency is currently in a state of uncertainty that may bring Egyot’s currency down like Nigerian Naira. Reporting from Investopedia, Egyption Pound is currently using a Fixed exchange-rate system where it may be due to economic pressures that will turn into a floating system that will surely override Egyptian Pound. The concern is precisely at the current rate of inflation.
4. Argentine Peso.
Quoted from Bloomberg.com, Argentine Peso is currently one of the worst performing currencies. This is the result of market speculation that the Argentine Central Bank is attempting to intervene in order to weaken its currency. Since President Mauricio Macri took office and decided to release the currency control and enter the floating system, Peso has fallen by 27% – 30% in 2016.
5. British Pound.
Who would have thought Pound Sterling currency that includes the mighty currency in the world turned out to be one of the worst in 2016. Even according to Bloomberg.com British Pound could be worse than Argentine Peso. Since June 23, 2016 Britain decided to leave the European Union (BREXIT), the Pound against the USD never recovered and even collapsed to the bottom 30 years ago.