Climate change could have very different effects on the world’s currencies, with China’s yuan and the Japanese yen suffering most unless more effective action is taken against climate change.

Playing out a series of scenarios, Barclays ‘worst’ option sees the euro as doing well and holding relatively stable value against the dollar whilst yuan could lose nearly six per cent by 2030, with a further a seven per cent depreciation over the next decade, and ten per cent per decade thereafter, leading to a total devaluation of 53 per cent over 50 years.

Likewise, the yen could decline by even more, 55 per cent in 50 years, becoming the worst performer due to the effects of rising sea levels.

Rising sea levels, variation in crop yields, health, tourism and effects on productivity were all factored into the report.

“Good” performers could include the US dollar and the Australian dollar.

These predictions are only under the least favourable outcomes with limited action on climate change.

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