Post
Topic
Board Economics
Re: The increase of dollar affecting underdeveloped countries economy
by
Fivestar4everMVP
on 23/02/2024, 08:58:41 UTC
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.
Like I believe many other must have said, dollar is like a a stand alone currency, and it's stability earned it the currency for world trades, every currency has the tendency to appreciate or depreciate against other currencies in the market, it all depends on the supply and demand on that particular currency.
I am not an economist, but what I have to say here is that, whenever a currency possibly trading against the dollar goes down in value, it's completely not the fault of the dollar, but solely as the result of the economic crisis of the country that owns the currency.

For example, Nigeria naira have been losing value against the dollar for a couple of months now due to the economic downturn or crisis in the country, is it appropriate for the Nigerian government to turn to the USA and blame them for the naira depreciation?, the answer is No, for if the Nigeria government will fix the economy of Nigeria, and make things stabilize again, the naira will start appreciating against the dollar.