FX.co ★ The world’s most volatile currency

It is considered that 2014 is the starting year for global catastrophes, including the financial ones.

A year ago the Russian ruble was the most volatile currency in the world. Its exchange rate changed by 10% in a couple of days. However, the financial authorities of Russia managed to ensure the stability of the national currency and still the ruble was rather volatile throughout 2016.

For much of the last year it is the South African Rand that has been the most volatile currency in the world. In 2017, it gave place to the Turkish lira, which was weighed down by the attempted coup and several terrorist attacks in the country.

The Mexican peso and the Colombian peso are also considered volatile currencies.

Speaking of Turkey, it has large external borrowing requirement which makes its currency one of the most vulnerable currencies to tightening by the Fed, in addition to rising inflation and other economic problems. The Turkish central bank cannot cope with rising prices as it has been under pressure from President Tayyip Erdogan to keep low interest rates.

The Turkish lira is losing investors’ confidence. According to Bloomberg, deposits in foreign exchange for individuals and companies excluding banks rose in the country at the fastest pace globally in 2017.