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30-09-2022, 10:01 AM
For US consumers, a stronger dollar means cheaper imported goods in the shops and more affordable holidays abroad.
For everyone else, the picture is less rosy.
The strength of the dollar also makes it more difficult for many developing countries to repay their debts, which are often held in US currency.
“As a result, many countries will struggle to find an ever-increasing amount of local currency to service their debts,” Tziamalis said.
“These countries will either have to tax their economies more, issue inflationary local money or simply borrow more. The results could be deep recession, hyper-inflation, a sovereign debt crisis or all three together, depending on the path chosen.”
https://www.aljazeera.com/economy/2022/9...llar-soars
For everyone else, the picture is less rosy.
The strength of the dollar also makes it more difficult for many developing countries to repay their debts, which are often held in US currency.
“As a result, many countries will struggle to find an ever-increasing amount of local currency to service their debts,” Tziamalis said.
“These countries will either have to tax their economies more, issue inflationary local money or simply borrow more. The results could be deep recession, hyper-inflation, a sovereign debt crisis or all three together, depending on the path chosen.”
https://www.aljazeera.com/economy/2022/9...llar-soars
