Russia best, UK among the worst in Q2 currency movements

Tracking the value of currencies is an important and continuous process for market researchers working across international regions. You may want to know more about how values have changed in the last year.

It’s not surprising that the British Pound did so badly against the $US in Q2 2017, given the decision to leave the EU in the referendum at the end of June last year. Of all world currencies its 12.2% fall was the third worst of all behind Egypt (-104.1%) and Turkey (-28.5%). My Figure shows the movements of all major currencies against the $US in the quarter.
It’s not so much that the UK’s decision was bad, more that it wasn’t accompanied by any practical plans to protect the economy. It’s not surprising either that as an analyst of the most hyper-globalised ITC industry I voted to remain. The UK managed through the Credit Crunch of 2008-2009 reasonably well because it devalued the Pound immediately and dramatically; the aftermath of the Brexit vote is very different – the falling Pound isn’t controlled by the government, it’s pushing up prices and it’s going to get a lot worse. We don’t need to wait until we actually leave for dire economic consequences – we’re already living through a depression caused by our democratic (but nationalistic and insular) decision and our fluid unwritten constitution.
On a more positive note the $US fell by 13.2% against the Rouble giving Russia the most positive change in its currency. It was followed by South Africa (-12.1%) and Brazil (-8.4%) s the next strongest currencies. Taiwan was in fourth position, although the -6.7% change will make its products (especially microprocessors) more expensive for international ITC buyers.

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