With the recent abrupt devaluation of Kazakh tenge by 20 % in a few days and devaluation of Kyrgyz som I've become curious about the situation with the other currencies in emerging markets.
It looks like Kazakhstan and Turkey are importing gold to keep its currencies from devaluation.
It turns out some of the emerging market currencies are sliding against the dollar as well. That is, Argentinian peso devalued by 15%; Turkish lira immersed; currencies of South Africa, Brazil, Russia and many others have come under the pressure. On my personal example working with some different currencies I have noticed the change. Last year I've recorded that $1 equals to 50 afs (afghani) and this year $1 costs 56 afs. Looks like not only Kyrgyz currency and the currency of our neighbor Kazkhstan are sliding down. Weakening of Kyrgyz som is also evident as it is mainly tied to the Russian ruble, comments the National Bank of Kyrgyz Republic.
While the situation with our domestic currency depends on the ruble due to various reasons, such as trade, migrants' remittances and so on, American government has its own direction towards the "green" money.
Fed seems to tighten its monetary policy and brings dollars back where they belong. This step leaves the emerging markets with devalued currencies and increased interest rates. This step is supposed to help the US economy and the emerging markets to be less dependent on the Federal Reserve.
It looks like Kazakhstan and Turkey are importing gold to keep its currencies from devaluation.
It turns out some of the emerging market currencies are sliding against the dollar as well. That is, Argentinian peso devalued by 15%; Turkish lira immersed; currencies of South Africa, Brazil, Russia and many others have come under the pressure. On my personal example working with some different currencies I have noticed the change. Last year I've recorded that $1 equals to 50 afs (afghani) and this year $1 costs 56 afs. Looks like not only Kyrgyz currency and the currency of our neighbor Kazkhstan are sliding down. Weakening of Kyrgyz som is also evident as it is mainly tied to the Russian ruble, comments the National Bank of Kyrgyz Republic.
Fed seems to tighten its monetary policy and brings dollars back where they belong. This step leaves the emerging markets with devalued currencies and increased interest rates. This step is supposed to help the US economy and the emerging markets to be less dependent on the Federal Reserve.
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