The situation in Nigeria continues to deteriorate. The naira continues to depreciate rapidly on the black market, reaching a new all-time-low against the dollar nearly every week. The economy is in recession, and we are currently forecasting GDP to contract…
Checking in on China’s Currency
While markets have ping-ponged following the shock of Brexit, and the internecine political fallout of the referendum continued to dominate headlines, an important story has flown under the radar: the accelerating depreciation of the Chinese renminbi. It was only recently…
President Maduro’s mild adjustment changes little for multinationals in Venezuela
Once again the Venezuelan government’s response to rapidly deteriorating economic conditions is woefully inadequate. On February 17 President Nicolas Maduro announced a series of economic policy changes that would have been insufficient even before the collapse in oil prices over…
What multinationals should know about the Chinese yuan’s SDR inclusion
FSG believes that the Chinese yuan’s inclusion into the IMF’s SDR basket will not lead to drastic changes in the international financial system in 2016; however, it’s critical for multinationals to have a holistic view on the value of the…
Political Pressures Deepen Depreciation of Turkish Lira
A number of events in recent months have increased concerns that economic decision-making in Turkey is becoming highly politicized. This will have a negative impact on multinational corporations for most of 2015 as volatility remains high and currency depreciation squeezes…
Egypt in on the Verge of an Economic Crisis
The Egyptian pound is likely to devalue by up to 20% against the dollar in 2012. The currency’s slide in value represents the biggest threat to the Egyptian economy. Egypt’s government is running out of hard currency to prop up…
Turkish Lira Depreciation – Outlook and Implications for MNCs
The Turkish lira lost 16% against the dollar in the past 3 quarters and has been one of the worst-performing emerging-market currencies this year. This trend has already started to hit bottom lines and companies are planning to hedge against…