When you take a look at the Canadian Dollar vs Gold, the year 2015 was a down year for the Canadian dollar, individuals holding gold and silver but mostly owning gold had not lost but gain, in value because of the lost in currency value. How you may ask, well gold and silver is traded in US Dollar so people owning gold in Canada gain on value holding gold. For 2016 the price of gold and silver has being raising while other currency has fallen against the USD.
The Chinese currency has been depreciating since around august 2015, it came to the market as a shock that china was depreciating it’s currency. China’s currency depreciation has affect its stock market, the recently shut down, came from the lack of confidence that the investors have in the market. Also the lack of growth and china’s slowing exports has put pressure on their economy to go down 7% in half an hour. These events has shown that the continuous problems in china are far from being solved.
Nigeria currency is called the naira, Nigeria is a country very dependant on imports and it uses the US dollar to pay these importers, but there has being a crunch on US dollar availability. So now Nigeria, because of this issue, they have planned on devaluing it’s currency in 2016. With a slowing economy the Nigerian government has plans to inject more liquidity into the economy. USD continuous raise will increase import prices and that will affect the locals when the go to the groceries stores.
Saudi Arabia has it’s currency peg to the US dollar and with the falling prices of oil Saudi Arabia’s riyal is under pressure because oil hitting a 12yr low at $32. The US dollar riyal peg is affecting the countries reserves and with the consideration of devaluing, this will not be good for the very volatile markets. Oil accounts for three-quarter of the countries income, so with low oil prices and new conflict with Iran, Saudi Arabia is burning through its reserves to defend 30 year peg to the US dollar. The Saudi’s are taking note of China devaluing their currency as well.
More countries like Venezuela struggling with a huge lost in its GDP and revenues from oil has put the country in a situation to devalue it’s currency. This is not new to the country they have being devaluing more than once already. Also countries like Argentina and Angola are also countries devaluing it’s currency. The currency war is getting worst around the world, one after the other each country is taking turns devaluing.