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006X [Print] 0078 [Online] - - ISSN 2709ISSN 2709ISSN

FAOSTAT ANALYTICAL BRIEF 6

Exchange rates

Exchange rates

FAOSTAT Analytical Brief 6

HIGHLIGHTS

® From 2009 to 2019, the strongest against the US Dollar among the of G20 countries was the British Sterling and the weakest currency was the .

® In 2019, the weakest currencies against the US Dollar for each region were the Somali (in Africa), the Bolivar Fuerte (in the Americas), the (in Asia), the Hungary Forint (in Europe), and the Vanuatu Vatu (in Oceania). The most volatile currencies from 2017 to 2019 in each of the five regions are the , the Bolivar Fuerte, the Iranian Rial, the Iceland Krona and the .

FAOSTAT EXCHANGE RATES

Over the last ten years, the strongest currency against the US Dollar among the currencies of the G20 countries was the British and the weakest currency was the Indonesian Rupiah. The exchange rates of the British Pound Sterling, the , the , the Chinese Yuan, the and the Australian Dollar remained fairly stable, whereas they showed volatility against the US Dollar in the other G20 countries. Moreover, the of remained unchanged due to its peg with the US Dollar. From 2017 to 2019, the most volatile currency was the Argentine , followed by the New Turkish , with a 190 percent and a 55 percent fall in value respectively against the US Dollar (Figure 1 and Figure 2).1

1 The currency names in this report are referred from the UNSD AMA currency name list: https://unstats.un.org/unsd/amaapi/api/file/30

Figures 1-2. Exchange rates of the G20 countries

8 20 150 15.000

125 12.500

6 15

100 10.000

4 10 75 7.500

50 5.000

2 5

25 2.500 Exchange rate against the US Dollar (solid lines) (solid Dollar US the against rate Exchange Exchange rate against the US Dollar (solid lines) (solid Dollar US the against rate Exchange Exchange rate against the US Dollar (dashed lines) (dashed Dollar US the against rate Exchange Exchange rate against the US Dollar (dashed lines) (dashed Dollar US the against rate Exchange 0 0 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Turkey (New ) Brazil () (Saudi Riyal) Australia (Australian Dollar) Japan (Yen) India (Indian ) (Canadian Dollar) France, Germany, Italy (Euro) Russian Federation () Argentina () United Kingdom* (Pound Sterling) Mexico () Republic of Korea (Won) Indonesia (Rupiah) South Africa (Rand) China (Yuan )

Notes: United Kingdom stands for United Kingdom of Great Britain and Northern Ireland. The G20 is made up of 19 countries and the European Union. In Figures 1-2, exchange rates are plotted for 18 countries in G20 against the US Dollar. Source: International Monetary Fund (IMF), United Nations Statistics Division (UNSD), Treasury – United Nations Operational Rates of Exchange, Food and Agriculture Organization of the United Nations (FAO) Statistics Division for the calculations. Units: Actual Local Currency Units to one US Dollar, Not Seasonally Adjusted. Frequency: Annual.

In 2019, the weakest currencies against the US Dollar for each region were the (in Africa), the Bolivar Fuerte (in the Americas), the Iranian Rial (in Asia), the Hungary Forint (in Europe), and the Vanuatu Vatu (in Oceania). The most volatile currencies from 2017 to 2019 in each of the five regions are the Sudanese Pound, the Bolivar Fuerte, the Iranian Rial, the Iceland Krona and the Australian Dollar (Table 1).

Exchange rates

FAOSTAT Analytical Brief 6

Table 1. Summary of the weakeast currencies in 2019 and the most volatile currencies from 2017 to 2019 in the five geographical regions

Region Weakest Currency in 2019 Most Volatile Currency from 2017 to 2019

Africa Somalia: :

Somali Shilling (24 300 per US Dollar) Sudanese Pound (587% fall in value against the US Dollar)

Americas Venezuela (Bolivarian Republic of): Venezuela (Bolivarian Republic of):

Bolivar Fuerte (15 372 per US Dollar) Bolivar Fuerte (2 431% fall in value against the US Dollar)

Asia (Islamic Republic of): Iran (Islamic Republic of):

Iranian Rial (97 777 per US Dollar) Iranian Rial (194% fall in value against the US Dollar)

Europe Hungary: Iceland:

Hungary Forint (291.66 per US Dollar) Iceland Krona (14.7% fall in value against the US Dollar)

Oceania Vanuatu: Australia:

Vatu (114.25 per US Dollar) Australian Dollar (10.3% fall in value against the US Dollar)

Note: The classification of the region is set according to the Standard country or area codes for statistical use (M49) of the UNSD. Source: IMF, UNSD, Treasury – United Nations Operational Rates of Exchange, FAO Statistics Division for the calculations.

FOCUS ON REPRESENTATIVE REGIONS AND SUB-REGIONS

1. Exchange rates in Eastern Africa

Most of the exchange rates of Eastern African countries have been depreciating gradually from 1999. In this region, Somalia has the highest exchange rate volatility and the Somali Shilling is the weakest currency (Figure 4). From 2017 to 2019, the is the most volatile currency, with a 22 percent fall in value against the US Dollar (Figure 3). From 2015 to 2016, the Mozambique Metical depreciated by 58 percent (Figure 3), which was mainly caused by the overall strengthening of the US Dollar and the decline in international commodity prices (coal and aluminum accounted for nearly 40 percent of Mozambique’s exports in 2015) (UNECA, 2017). Furthermore, the Uganda Shilling and the Madagascar Aviary depreciated against the US Dollar at a similar rate over the past 20 years (Figure 4).

Figures 3-4. Exchange Rates in Eastern Africa by Country

120 4.000 40.000

3.500 35.000 100

3.000 30.000

80 2.500 25.000

60 2.000 20.000

1.500 15.000 40

1.000 10.000 Exchange rate against the USDollar the against Exchangerate

20 lines) (solid Dollar US the against rate Exchange Exchange rate against the US Dollar (dashed lines) (dashed Dollar US the against rate Exchange 500 5.000

0 0 0 1999 2004 2009 2014 2019 1999 2004 2009 2014 2019 Kenya () Mozambique (Metical) Uganda (Uganda Shilling) Mauritius (Mauritius Rupee) Ethiopia (Ethiopian Birr) Madagascar () United Republic of Tanzania () Eritrea (Nakfa) Burundi (Burundi )

Source: IMF, UNSD, Treasury – United Nations Operational Rates of Exchange, FAO Statistics Division for the calculations. Units: Actual Local Currency Units to one US Dollar, Not Seasonally Adjusted. Frequency: Annual.

2. Exchange rates in Western Africa

Over the last 20 years, the Guinea Franc was the weakest currency in Western Africa, followed by the , which also has the highest volatility, with a 22 percent decrease in value against the US Dollar between 2017 and 2019. Nigeria, the biggest economy in Western Africa, experienced a 60 percent of its currency from 2014 to 2016, which was mainly caused by the fall in international oil prices in 2014 that led to a smaller export revenue, and the removal of its currency peg to the US Dollar in 2015 (Ohuocha and Mayowa, 2016). member countries of the Western African Economic and Monetary Community (WAEMU), , , Côte d’Ivoire, Guinea-Bissau, , , and are sharing the same currency: the Western African CFA franc. The WAEMU countries are all in the CFA Franc Zone2 and have a fixed exchange rate to the Euro. Therefore, the variation of the Western African CFA franc is similar to that of the Euro (Figure 5).

2 The Franc Zone was created in the late 1930s. It includes 14 Western and Central African countries as well as the Comoros, bound by a monetary cooperation policy.

Exchange rates

FAOSTAT Analytical Brief 6

Figure 5. Exchange Rates in Western Africa by Country

800 10.000

700 8.750

600 7.500

500 6.250

400 5.000

300 3.750

200 2.500 Exchange rate against the US Dollar (solid lines) (solid Dollar US the against rate Exchange Exchange rate against the US Dollar (dashed lines) (dashed Dollar US the against rate Exchange 100 1.250

0 0 1999 2004 2009 2014 2019 WAEMU Countries (CFA Franc BCEAO) Nigeria (Naira)

Guinea (Guinea Franc) (Leone)

Source: IMF, UNSD, Treasury – United Nations Operational Rates of Exchange, FAO Statistics Division for the calculations. Units: Actual Local Currency Units to one US Dollar, Not Seasonally Adjusted. Frequency: Annual.

3. Exchange rates in Central America

Since 1999, Costa Rica has the weakest currency in Central America. In the same period, the US Dollar exchange rates for the Nicaraguan Cordoba Oro and the have been gradually depreciating. From 2017 to 2019, the is the most volatile currency, with a 10 percent drop in value against the US Dollar. With the adoption of the US Dollar as their official currency unit, and have fixed exchange rates. Belize also has a fixed exchange rate, as it has pegged its currency since 1978 to the US Dollar3 (Figure 6). From 2014 to 2016, the Mexican Peso saw a sharp depreciation of around 40 percent, mainly as a result of changes in oil prices in 2014 and increases in US interest rates in 2015 (Rios, V., 2016).

3 The has been pegged to the US Dollar at 1 USD = 2 BZ$.

Figure 6. Exchange Rates in Central America by Country

35 700

30 600

25 500

20 400

15 300

10 200 Exchange rate against the US Dollar (solid lines) (solid Dollar US the against rate Exchange Exchange rate against the US Dollar (dashed lines) (dashed Dollar US the against rate Exchange 5 100

0 0 1999 2004 2009 2014 2019 Nicaragua (Cordoba Oro) (Lempira) Mexico (Mexican Peso) Guatemala (Quetzal) Belize (Belize Dollar) Panama and El Salvador (US Dollar) Costa Rica (Costa Rican Colon)

Source: IMF, UNSD, Treasury – United Nations Operational Rates of Exchange, FAO Statistics Division for the calculations. Units: Actual Local Currency Units to one US Dollar, Not Seasonally Adjusted. Frequency: Annual.

4. Exchange rates in South-eastern Asia

In South-eastern Asia, from 1999 to 2019 the strongest currency against the US Dollar was the , followed by the , whereas the Vietnamese Dong was the weakest currency. During the same period, the currencies of many countries in the region have experienced significant volatility. From 2017 to 2019, the most volatile currency is the Burmese Kyat, with an 11.6 percent decline in value against the US Dollar (Figure 7).

Exchange rates

FAOSTAT Analytical Brief 6

Figure 7. Exchange Rates in South-eastern Asia by Country

60 30.000

50 25.000

40 20.000

30 15.000

20 10.000 Exchange rate against the US Dollar (solid lines) (solid Dollar US the against rate Exchange 10 5.000 lines) (dashed Dollar US the against rate Exchange

0 0 1999 2004 2009 2014 2019 Philippines () Thailand (Baht) Malaysia (Malaysian Ringgit) Singapore (Singapore Dollar) Viet Nam (Dong) Indonesia (Rupiah) Lao People's Democratic Republic (Kip) Cambodia (Riel) (Kyat)

Source: IMF, UNSD, Treasury – United Nations Operational Rates of Exchange, FAO Statistics Division for the calculations. Units: Actual Local Currency Units to one US Dollar, Not Seasonally Adjusted. Frequency: Annual.

Download data at: http://www.fao.org/faostat/en/#data/PE

EXPLANATORY NOTES

GENERAL DESCRIPTION/BACKGROUND

Exchange rates are defined as the price of one country’s currency in relation to another. Exchange rates are expressed as the average rate for a period of time or as the rate at the end of the period. Exchange rates are classified by the International Monetary Fund (IMF) in three broad categories: i) a market rate in which the rate floats and is determined largely by market forces; ii) an official rate, as determined or announced by national authorities (typically the ); and iii) the principal, secondary, or tertiary rate, for countries maintaining multiple exchange arrangements. In this report, exchange rates are provided in terms of Standard Local Currency (SLC) per US Dollar. The SLC exchange rates require time series data to be expressed in terms of the currency used in the most recent reference year before converting data into US Dollar.

SOURCE DATA

The main data sources are United Nations Statistics Division (UNSD) National Accounts Estimates of Analytical Main Aggregates (AMA) for data from 1970 to all but the most recent year (2019). IMF Macroeconomic Financial Data are predominantly used for year 2019 and for countries for which IMF does not have data or IMF data are not matching UNSD data, United Nations Operational Rates of Exchange are used instead.

REFERENCES

Ohuocha, C. & Mayowa, O. 2016. tumbles 30 percent after peg removed. Reuters, 20 June 2016. https://www.reuters.com/article/us-nigeria-currency/nigerian-naira- tumbles-30-percent-after-peg-removed-idUSKCN0Z61F7

Rios, V. 2016. What's Going on With the Peso? The Wilson Center. 2 November 2016. https://www.wilsoncenter.org/article/whats-going-the-peso

United Nations Economic Commission for Africa. 2017. Country Profile – Mozambique 2016. Addis Ababa, United Nations Economic Commission for Africa. https://www.uneca.org/sites/default/files/uploaded- documents/CountryProfiles/2017/mozambique_en.pdf

This analytical brief was prepared by Michele Vollaro, Jean Marie Vianney Munyeshyaka, Naglaa Elsodany and Liu Xinman (FAO Economic Statistics Team) with input from Olivier Lavagne d'Ortigue (FAO Statistics Division). The Economic Statistics Team is part of FAO Statistics Division and it is coordinated by Piero Conforti. Suggested citation: FAO, 2020. Exchange Rates. FAOSTAT Analytical Brief Series No 6. Rome. Cover photo: ©FAO/Ivan Grifi

CONTACTS Statistics - Economic and Social Development E-mail: [email protected] Website: www.fao.org/economic/ess/ess-home/en Food and Agriculture Organization of the United Nations Viale delle Terme di Caracalla 00153 Rome, Italy

CB0420EN/1/09.20