Post
Topic
Board Economics
Re: The increase of dollar affecting underdeveloped countries economy
by
kryptqnick
on 24/02/2024, 17:57:05 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.
What does dollar increasing mean in this situation? Is it the amount of the USD being used by regular people in that country? Is it strengthening of the USD value against the local fiat (which is usually more about the weakening of local fiat than the strengthening of the USD)? The USD is normally doing fine, but as most fiat, it has an inflation rate and loses value over time. When another currency loses even more value due to higher inflation, it can be a problem and people can become poorer in that country, which is especially noticeable when going abroad but also within the country if the situation is bad enough. But that's not the dollar's negative impact.