Actually have come to understand the fact that when ever dollar increases it may likely cause the depreciation of other currencies in underdeveloped countries. Particularly this might make this underdeveloped countries to be very poor. It can also make them not to engage in the global market of trading, because their currencies can not meet up to this increase in dollar. I think it’s really a global issue that needs to be addressed in order to help this underdeveloped countries.
When underdeveloped countries heavily depend on importation, when there is bad economic policy in the country, it makes the value of their local currency loose value against the dollars, the importers spend more money on importation and clearance of their goods, and because of the more money spent on importation, they increase the price of goods and commodities and that tightens the economy for the low income earners and others just struggling to survive.