In the past three months, a number of nations had their currencies depreciate significantly against the dollar.
The Russian Ruble appreciated versus the US dollar. The dollar gained value by around 12% versus the euro, 13% against the Japanese yen, and nearly 11% against the British pound.
In short, the dollar’s value has increased relative to all major currencies. It also gained against the Indian rupee and the Chinese yuan, while it lost some value against the Brazilian real.
Check the few economies whose currencies have devalued significantly in 2022.
| CURRENCY | PERCENTAGE OF DEPRECIATION |
| Ghana Cedi | 32.13% |
| Indian Rupee | 6.11% |
| Japanese Yen | 13.67% |
| South Korean Won | 11.55% |
| Euro | 11.59% |
| Pound Sterling | 10.47% |
| Australian Dollar | 8.04% |
| Pakistan Rupee | 25.99% |
| South African Rand | 8.42% |
| Chinese Yuan | 6.24% |
| Turkish Lira | 20% |
Foreign exchange wars are notoriously a zero-sum game. There will be winners and losers. Every country “wants the same thing,” says Alan Ruskin, chief international strategist at Deutsche Bank AG, but “you can’t have that in the currency world.”
Who is the biggest winner of this game? Who is the biggest loser? Is the world heading to another recession? Is this another way to maintain the US Dollar hegemony? Is the end of a beginning or the beginning of an end?
Leave your opinion in the comments section below.