7 International Currencies Expected To Plummet in Value by the End of 2025

Is your dream vacation abroad about to get cheaper ? Or is your international investment portfolio in for a wild ride? Buckle up, folks, because some major global currencies might be headed for a nosedive by 2025.

GOBankingRates spoke with financial experts to get the scoop on which international monies might lose their mojo .

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Euro: Parity Party With the Dollar?

While not exactly plummeting, the euro might be in for a reality check. Julia Khandoshko, CEO at international broker Mind Money , thinks the gap between the euro and the dollar could shrink.

“I am not claiming that the euro will devalue, but it will strive for parity with the dollar,” Khandoshko said. “If we look at the long-term history, the euro was once worth about 1.5 dollars. Later, we got used to its value of 1.3, and then 1.2, which was still higher than the current level of 1.1.”

Why the potential slide? Khandoshko points to Europe’s current problems, along with “indecisive leadership,” as reasons we might see the euro flirting with dollar parity again.

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Turkish Lira: Too Much, Too Fast?

Turkey’s currency might be in for a bumpy ride. Khandoshko didn’t mince words: “Turkey has failed to cope with the economic growth and political ambitions that it has set for itself.”

She added, “The Fed’s unbalanced policy and lack of a coherent economic strategy have worsened the situation, and this may lead to even more serious consequences for the Turkish currency in the future.”

Ukrainian Hryvnia: Debt Dilemma

Ukraine’s currency woes stem from a mountain of IOUs. “Ukraine has the third-largest external debt in the world,” Khandoshko explained. “It has huge obligations to the IMF and is forced to carry out significant economic liberalization.”

The result? Khandoshko believes Ukraine has virtually no other option but to devalue its national currency.

Argentine Peso: No Light at the End of the Tunnel

Argentina’s economic rollercoaster shows no signs of slowing down. Khandoshko painted a grim picture: “The situation in this country continues to deteriorate, and we have no reason to be optimistic.”

She sees a similar path to Ukraine, saying that the depreciation of the national currency seems to be the only way out of the current economic situation and interaction with external creditors.

Chinese Yuan and Asian Currencies: Trump Card?

Pan Lorattawut, CEO at VUCA Digital, the blockchain consulting firm behind CROWN Token Project , thinks the 2024 U.S. election could spell trouble for Asian currencies, particularly if Trump wins.

“Asian currencies will be under downward pressure if Trump wins the general election this year and reiterates American-first policy and trade barriers with China,” Lorattawut said. She adds that in turn, the Chinese yuan (CNY) may lead other Asian currencies to plummet, a cycle we saw with the previous election cycle when Trump won.

But it’s not just about politics. Lorattawut pointed out that China’s economy faces many headwinds from structural issues, including the property market and shadow banking.

What does this mean? According to Lorattawut, trade partners and supply chains are unlikely to get substantial benefits from China’s economic recovery anytime soon.

Japanese Yen: Lagging Behind

Brian O’Connell, a financial expert with Annuity.org , provides insight on the yen’s current situation: “The yen has risen over 7.5% in the past six weeks, but only after falling significantly – at 160.86 versus the U.S. dollar and 171.89 versus the euro.”

He continued: “This is the case even as the Bank of Japan hikes benchmark rates out of negative territory.” He says that until the U.S. Federal Reserve begins its rate reduction policy, the Fed is overshadowing Japan’s rate moves, which should contribute to the yen’s lagging.

Australian Dollar: Treading Water

O’Connell also weighs in on the Australian dollar’s challenges: “The AUD is treading water while waiting for the U.S. to commit to a lower interest rate policy.”

He adds that key Australian exports – think  coal and iron ore –  are lagging as slowing demand from the U.S. and the Pacific Rim continues. He believes this will continue until government officials opt to curb Australia’s own interest rates.

The Final Word

While these predictions paint a potentially grim picture for some currencies, remember that the forex market is unpredictable. As far as the American dollar, Khandoshko shared, “The dollar remains a very strong currency. The policy pursued by the Federal Reserve System has already led to the fact that the dollar is at heights, and it will become even more stable in the future.”

As always, keep an eye on the market and talk to a financial advisor before making any major money moves.

This article originally appeared on GOBankingRates.com : 7 International Currencies Expected To Plummet in Value by the End of 2025