Doing well: Chinese Yuan
It has been a really strong year for the Renminbi. Starting off the year at over 9 CNY to 1 GBP, the Chinese Yuan (CNY) has outperformed the pound.
Over the course of the year, we have seen rates as low as 8.1. As the year draws to a close it is currently sitting at just over 8.4 CNY to 1 GBP.
It’s been a fascinating year for currency in China. In early autumn the People’s Bank of China and the National Development and Reform Commission effectively banned decentralised cryptocurrencies like Bitcoin.
China hasn’t banned ALL e-currencies though, interesting the People’s Republic have however opted to pilot their own digital currency, the e-CNY, in April 2020 and have since seen high levels of growth in Chinese investments.
Performing poorly: Turkish Lira
In brief, the Turkish Lira (TRY) has HALVED in value against the pound since August 2020 and looks to be in absolute freefall, currently at an all-time low at over 18.3 TRY to 1 GBP.
President Recep Tayyip Erdogan of Turkey has pressed ahead with a widely criticised effort to cut interest rates despite surging consumer prices and calls for reversal.
The Turkish Economy is still in crisis and there currently looks to be no end in sight with poverty levels and consumer prices in the country still rising.
You can read more about the crisis in the Turkish Lira here.
Doing well: US Dollar
The Pound was initially strong against the US Dollar sitting at 1.36 at the beginning of the year but the US dollar has since regained its momentum strengthening against the pound over the course of the year. It is currently sitting at 1.32.
People are sceptical against GBP due to last months announcement that interest rates were going to be left unchanged by the BoE as well as the UK-EU standoff over how to regulate trade in Northern Ireland. This has held back investors from placing positive bets.
Investors are flocking towards the USD as this is the safe-haven currency with little risk, meaning the USD has garnered considerable strength as the currency to buy.
The USA has also seen a number of big policy wins this year including a new gigantic infrastructure spending package.
Performing poorly: Chilean Peso
The Chilean Peso (CLP) started off the year strong against the pound sitting at 972.04 against 1 British Pound but has since seen a yearly low sitting at 1113.33, meaning the pound has seen a 14.5% increase against the peso.
The peso was has been negatively affected on two fronts. Firstly due to COVID-19, which has caused the deaths of nearly 40,000 citizens.
Secondly, the Chilean economy is heavily reliant on strong oil prices, with the cost of crude sinking, the peso has taken a hit.