Permjit Singh
  • About
  • ਪੰਜਾਬੀ
  • Contact
  • Never forget 1984
  • Feedback
  • Books on Sikhi
  • Israel's war criminal
  • Other
    • 1984 remembered - 01 Jun 25 London
    • Vaisakhi Nagar Kirtan 06 Apr 25
    • Tree-planting 03 Apr 25
    • Boycott Israel - Ealing
    • Genocide of Palestinians by Israel
    • Palestine march London 17 May 2025
    • Anti-racism rally London 26 Oct 2024
    • Alcohol addiction - resources
    • Southall Park 29 Nov 2024
    • Published books
    • EAS-Clarion Quiz
    • Feeback form
    • Questions written badly
    • Compounding 2024
    • Food Bank 26 Nov 2024
    • US financial literacy quiz
    • Published articles
    • Hollywood's racists
    • Audio
  • About
  • ਪੰਜਾਬੀ
  • Contact
  • Never forget 1984
  • Feedback
  • Books on Sikhi
  • Israel's war criminal
  • Other
    • 1984 remembered - 01 Jun 25 London
    • Vaisakhi Nagar Kirtan 06 Apr 25
    • Tree-planting 03 Apr 25
    • Boycott Israel - Ealing
    • Genocide of Palestinians by Israel
    • Palestine march London 17 May 2025
    • Anti-racism rally London 26 Oct 2024
    • Alcohol addiction - resources
    • Southall Park 29 Nov 2024
    • Published books
    • EAS-Clarion Quiz
    • Feeback form
    • Questions written badly
    • Compounding 2024
    • Food Bank 26 Nov 2024
    • US financial literacy quiz
    • Published articles
    • Hollywood's racists
    • Audio
Search by typing & pressing enter

YOUR CART

28/7/2022

Why USD appreciation is bad news for Emerging Economies

Not least of which is a higher cost of servicing USD debt

The Financial Times highlighted the many reasons why an appreciation of the USD is bad news for Emerging Market countries (EMs), by which they mean, developing countries.

  • increased cost of $ debt,
  • reduced supply of capital into EMs,
  • higher cost of imports,
  • less global trade (because it is more expensive for non-$ countries to buy $ to buy imports, so EMs buy fewer goods) so reduced income from trade,
  • Exchange rate depreciation (of local currency vs $) leads to domestic inflation,
  • depreciation of the Chinese Yuan vs $ means less Chinese trade, which means less trade for EMs,
  • worsening credit status of EMs - so it is more expensive for EMs to borrow (a higher coupon on debt).

If you are involved in import or export (not only to or from EMs) and you wish to discuss how to manage your currency transfers or hedge the associated currency risks, then contact me for a free no-obligation discussion.



Comments are closed.
© 2025  All rights reserved
Registered with the Information Commissioner's Office
Privacy Policy:  Click here for details