Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Central Bank’s Twitter Response Highlights Struggle in Emerging Markets and the Declining Value of Old Paper Money

by Daily Hodl Staff
May 13, 2020
in Blockchain, Futuremash
‏‏‎ ‏‏‎ ‏‏‎ ‏‏‎
ADVERTISEMENT

Emerging market currencies are facing fresh record lows against the US dollar. With central banks taking extreme measures to combat the economic fall-out from the coronavirus outbreak, along with the severe impact of slumping oil prices, people in South Africa, Iran, Mexico, Brazil and elsewhere are facing devalued or collapsing currencies as well as massive foreign debt.

For the first quarter of 2020, the MSCI Emerging Market Currency Index, which tracks emerging market currencies, showed a 6% drop, the biggest quarterly decline since 2015. Heading into April, several currencies posted sharp declines in value against the US dollar.

  • South Korean Won -5%
  • Turkish Lira -14%
  • Brazilian Real -23%
  • Mexican Peso – 24%
  • South African Rand -32%

Last week, Iran passed a bill to rename the rial, slashing four zeros from its currency. The new “toman” will equal 10,000 rials or 100 “gheran” which is yet another new currency denomination.

Abdolnaser Hemmati, governor of Iran’s central bank, says the dramatic reform is imminent. He told parliament on Monday that the currency’s latest downward spiral is part of a long-standing systemic problem, reports the Financial Times.

“Currently, our money has a horrifying difference with euro and [one rial] equals €0.000006. The efficiency of the national currency has declined due to chronic inflation over five decades.”

The Central Bank of Kenya highlighted its inability to offer any guidance on old paper money that has depreciated, telling a holder they had “no advice to give”.

Sorry, we have no advice to give. https://t.co/wxEKElJqY5

— Central Bank of Kenya (@CBKKenya) May 13, 2020

In Miyani, a small village in Kenya, consumers are seeing an uptick in the number of people using a blockchain-based digital currency called sarafu to make daily purchases of food and other household goods. By sending the currency through smartphones, users avoid Kenya shillings. According to Will Ruddick, a board member at Grassroots Economics which runs the sarafu network, activity has surged over 500% since 2019.

Emerging markets are also coping with the crippling effects of the tourism industry which has been wiped out by Covid-19. Speaking on Wednesday at a conference hosted by the Financial Times, the IMF’s chief economist Gita Gopinath says she expects the global economy to continue its downward spiral due to a collapse in consumption.

“If anything, it looks like the outlook will worsen.”

The IMF is forecasting a recovery for both advanced economies and emerging and developing economies in 2021.

ADVERTISEMENT


Check Latest News Headlines


ADVERTISEMENT


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Walid Kilonzi

Submit a Press Release

Crypto Livewire – Press Releases

  • MakiSwap Raises $1.4M From Leading Investors to Build AMM Platform on Huobi Eco Chain
    April 14, 2021
  • DigitalBits To Become Premier Choice for NFTs After Litemint Partnership
    April 13, 2021
  • Ethernity Chain Launches Authenticated NFT Marketplace to Curtail Fraud
    April 13, 2021
  • ConsenSys-Backed Virtue Poker Raises $5 Million Strategic Round
    April 12, 2021
  • Cometh Partners With Alchemix for “Wizards” Collection of Yield-Generating NFTs
    April 9, 2021
  • eToro Appoints Dr. Hedva Ber, Israel’s Former Banking Supervisor, As Deputy CEO and Global COO
    April 8, 2021
  • Blockchain Provider Orbs Is Now Accessible Through the AWS Marketplace
    April 8, 2021
Submit a Guest Post
ADVERTISEMENT
ADVERTISEMENT
Bitcoin
$63,017.00
$63,017.00
1.92%
Ethereum
$2,463.05
$2,463.05
3.56%
Binance Coin
$546.86
$546.86
6.87%
XRP
$1.75
$1.75
9.28%
Polkadot
$42.84
$42.84
2.38%
Cardano
$1.44
$1.44
5.07%

Spotlight

  • XRP Flashing Powerful Buy Signal, Says Legendary Trader Peter Brandt
    April 8, 2021
  • Cardano Has One Big Edge Over Other Cryptos, Says Coin Bureau
    April 12, 2021
  • Data Shows Bitcoin Is Now Worth More Than Half of Entire US Banking System
    April 9, 2021
  • Music Mogul Akon Working With Two African Nations To Build Crypto-Powered Cities
    April 13, 2021

DON’T MISS A BEAT

Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options

By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.

Check your inbox for confirmation email.

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX • Explore • Futuremash •
Crypto Livewire

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2021 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
  • DAILY HODL MIX

© 2020 The Daily Hodl

×