#currency devaluation

[catandgirlcomic]

[indizombie]

When he came to power in 2019, President Rajapaksa decided to cut taxes. This meant the government had less money to buy foreign currency on the international markets to increase its reserves. When Sri Lanka's currency shortages became a really big problem in early 2021, the government tried to stop the outflow of foreign currency by banning all imports of chemical fertiliser, telling farmers to use organic fertilisers instead. This led to widespread crop failures. Sri Lanka had to supplement its food stocks from abroad, which made its foreign currency shortage even worse. The government has banned the import of a wide range of "non-essential" items - from cars to certain types of food and even shoes. One way that countries can boost their exports is to cut the value of the currency, but the government refused to let the Sri Lankan rupee fall against other currencies. It finally did so in March 2022, and the rupee fell more than 30% against the dollar.

‘Why are Sri Lankans protesting in the streets?’, BBC

[indizombie]

Queues form outside petrol stations and outside local government offices offering cheap bread. And opposition parties have called for snap elections and rallies. When the lira slumped 18% in one day on 23 November, there were small protests and dozens of arrests. But the most visible display of public dissent is among younger Turks on Twitter, Twitch live streams, TikTok videos and YouTube. "I am not happy with this government at all. I cannot see a future for myself in this country," one young person told a reporter from a YouTube channel.

Ozge Ozdemir, ‘Why Turkey's currency crash does not worry Erdogan’, BBC

[indizombie]

China reported more signs of a weakening economy on Wednesday, with factory output falling to a 17-year low and high unemployment. The report fed fears about a broader global slowdown as the trade conflict appears to be stalling some of the world's most powerful economies. Several factors have contributed to the market turbulence in recent sessions, including China's threat to devalue its currency, massive protests in Hong Kong that could prompt a response from the Chinese government, an escalation of the US-China trade war and the flight to bonds. The trade roller coaster has fostered a feeling of uncertainty among American businesses, making it more difficult for companies to make long-term plans.

'Recession warning flashes for first time since financial crisis, stocks plunge', Washington Post

[greatprinceofabraham]

.@ITMTrading @DanielaCambone

#GregoryMannarino: “'Artificially suppressed #rates & #currencydevaluation are likely to provide a boost for the #stockmarket,'...cautioning about the inevitable loss of #purchasingpower as currencies weaken."

#Cantilloneffect

https://youtu.be/-7Gh7Nvz_nM?si=-2aBaHlFqhPQfrDa

[youthchronical]

Economic warfare: China to deploy economic 'nuclear option'? - Times of India

NEW DELHI: Amidst increasing geopolitical tensions, there is growing speculation that China may be considering a drastic economic maneuver—devaluing its currency, a move often referred to by economists as the “nuclear option” due to its potential widespread global impact.Andreas Steno Larsen, CEO of Steno Research, raised concerns last week about China’s intentions following its aggressive…

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[notayesmanseconomics]

Halting the falls in the Turkish Lira is the only way Turkiye can control its soaring inflation

On Thursday I was reminded of one of my themes which is that you can reach a point where interest-rate increases can do more harm than good. What I mean is that is they are already very high what sort of improvement will a further nudge bring as opposed to reminding everyone that things are in quite a state. So let me show you the announcement from the central bank of Turkey or TCMB. The Monetary…

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[axioscreditbank]

Nigerian Reacts To The Currency Exchange Rate Set By The Market

Discover the current exchange rate of Nigeria's Naira and learn how it can be used to draw in potential investors. Get up-to-date informatio

Nigeria’s central bank has recently ended its distorted foreign exchange rate, a move by the new government of Africa. The government of Africa’s economy hopes that this will help them woo investors and stabilise the local currency.

The central bank of Nigeria has ended the distorted foreign exchange rate, a move by the new government in Africa hoping that it will help to woo investors and stabilise the local currency.

The central government of Nigeria made this announcement on Wednesday and it led to a record fall in the value of the naira currency to 755 per US dollar. It has recovered some since then.

This move reflects the changes that new President Bola Tinubu has pledged to make to strengthen the ailing economy, analysts said.

Samuel Badejo, banker and resident of Legolas said, “The changes seem to be positive,” but he remains cautious about the results. He added, “ I don’t want us to judge quickly that he (Tinubu) has started acting, we just want to see what he will do for the first 100 days.”

Read more: https://www.axioscreditbank.com/blogs/nigerian-reacts-to-the-currency-exchange-rate-set-by-the-market