Be careful, a strong dollar could trigger a currency crisis
It is too strong for some
countries. Some signs seriously
They talk about the birth of a new currency
crisis. For example, currency
Brazil – real – it had fallen to 12-year-old
low on Monday. currency in
South-East Asia are in their
worse situation with the previous financial
crisis in the late 1990s. exchange
currencies of Mexico and South Africa on
the lowest level in relation to
dollar, according to Capital Economics.
The history of strengthening
The dollar should make clever
tremble. Rally at the start of the US national currency
1980s helped cause the debt
Crisis in Latin America. Fifteen
years later, the dollar again rose rapidly,
resulting in the country’s south-east
Asia, for example, Thailand, fall apart,
When will the citizens rush to the banks to
demanding the return of their contributions.
currency crisis can be a real
a blow to the global economy, even
the United States. The world is now much
more integrated than it was in
1980-90-ies. In other words, the collapse
Chinese stock market can be
only the beginning of trouble for
emerging markets. There are at least three
things that can create potential
crisis: the dollar is gaining weight against
major currencies, the Fed raises rates
September and engine developing
Markets – Products – rapidly becoming cheaper.
Investors in emerging markets
worry more about the Fed, the dollar growth
equally dangerous for all, say
experts. In March, the dollar rose to
40-year-old record. Now he’s back
rises – it was 20% higher than in the past
in comparison with the world’s major
currencies, according to the Federal Reserve Bank of St. Louis.
When the dollar on top
its growth, and economic growth
China is slowing down, which affects the
decline in demand for commodities –
All this raises concerns about
as an export-oriented economy
will develop, because they lose
the main buyers. Not to mention
already about who some of these countries
They have their individual problems.
Brazil’s economy in recession, China
It slows down, and some even claim
that because of the crisis in Greece has slipped
the category of countries with emerging markets.
countries that have significant
economic reforms, such as India
and Mexico, must withstand the rising dollar,
experts say. But those who are inhibited with the changes, the dollar
continue to strike.
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