Topic: The increase of dollar affecting underdeveloped countries economy (Read 808 times)

it affects the dollar earner in Nigeria whether the dollar falls or goes up, their earnings also depend on the rate.

in underdeveloped countries, it often affects when the prices of products are going high especially because they are rated in dollars such as gas.  when gas prices go up, so is the price in Naria. still when this happens the dollar earner is also affected.

Increase in dollar does not affect any undeveloped countries rather it's because of their weak and unstable economies which can't compete favourably in the international market causing the local currency of that country to depreciate against the dollar
The truth is dollar is always stable and does not increase in the united state but because underdeveloped countries like Nigeria their currencies are fragile due to their weak and bad economic policies the local currency always decline against the dollar the most painful thing is the devaluing of these weak currencies especially in my country Nigeria the naira is always devalued for God knows what reason that the government always give

We are seeing thile scenarios you have mentioned in all those countries where their local currency value has reduced which causes major issue for importers as they will be paying in dollars wherein they would shell out more and pay at regular price which has ill reduce their profit margin or if they increase the price then people will be hesitant to buy.

$1 is not always equal to a $1 if you actually live in a develop nation, there is what we call purchasing power, it reduces in most of this developed countries because under develop countries doesn't have much purchasing power like the develop ones because of the development, their currency are been value so might not notice this things especially if you are earning in a local currency, anytime you have the opportunity to earn currency of developed currency, spending it in under develop country will give you high esteem and value of the money.

Yes, it is true, the increase in the dollar affects the economy of a country, after all the dollar is a global currency that should be more stable than any country's money, but because the dollar rises, of course international trade will also increase, starting from the sale and purchase of raw materials, finished goods, production and related to exports and imports will be significantly affected, and developing countries will continue to pursue to buy even in a very loss because maybe one of the basic needs must be met. In addition, it is also about the exchange rate that may be dragged by the greater the difference, which will be increasingly difficult for a country to develop or compete.

I do not completely agree with you, although I have my reservations at the freedom some countries have in terms of influencing other countries economies through various agencies and institution they control. Rather than blaming the dollar for the woes of the underdeveloped economies, I will blame their leadership because increase in dollar can actually be used to the advantage of those countries. With the right leadership in place, most of these countries will make so much revenue when they are productive and are able to export goods, in this case, they enjoy lower cost of production and more earnings when sold at the international market.

Some countries such as Japan even prefer a stronger dollar against their currency because they earn more foreign exchange when the dollar is high as a net exporting nation. China have also this mentality but theirs is not obvious as that of Japan. In the past, the Japanese central bank have intervened to weaken their currency when it was going above their threshold. Higher dollar affects mostly consumer nations that depend so much on importation but they can actually take advantage of it if they act smart.

In my opinion, whether or not a country's economy will be affected by an increase in the dollar depends on how significant the increase is. If the increase is significant, countries that have debts denominated in dollars will be overwhelmed in paying them, and will most likely ask for payment delays.

Importers will complain about rising purchasing prices, because they buy in dollars while they sell in local currency, so importers will suffer losses, if the price of goods is increased then sales will decrease. On the other hand, for exporters, they will profit from the difference in exchange rates even though they sell goods abroad at the same price.

However, in general, an increase in the dollar will greatly affect the economy of a country, especially developing or underdeveloped countries. Even due to the increase in the dollar, such countries could experience bankruptcy.

Actually there's no link between increase in dollar as it affects inflation of prices of goods and services in developing countries
It is simple economics if you don't export and increase your GDP as a country and keep importing the smallest of things from outside your country currency will always depreciate

That is supply and demand, if the dollar is on demand the supply of currencies against it increases. The underdeveloped countries need to give demand to be able to keep up with the dollar.

This is why every country's economy will naturally improve if it tries to prevent the devaluation of its own currency without blaming the dollar. In this case every country must deal with honestly prevent money laundering and do all the work to increase the country's remittances. I think that if every independent country takes care and manages the economic affairs of the country by doing its work honestly then every country will become a developed country.

Every country have their budget and there's always room for these activities to get heightened. But the developed one are always two step ahead. Developed countries are the ones topping the current equilibrium, giving more digital gap to developing countries that are still finding it difficult to adapt and also making their currency stable. A $1 will always be a $1 dollar worth, it doesn't change but when it involves others currency, more specifically the developing country where their currency is unstable and giving room for depreciation works swiftly.

Yes I agree when the value of our local currency falls, the value of the dollar automatically rises. It creates inflation which is not good for any country. Every country's government tries hard and soul to face that situation smoothly. They always try to keep away recession from the country. Every government must take on different types of development projects. If the country is developing day by day then they must overcome from this problem.

But the problem lies elsewhere, when us print more and more dollars it automatically increase the price rate on every country, not only those country who depends on usa and imports huge products from usa, but also other countries cause most of the country use usd to open LC.

What does “dollar appreciation” even mean?
The dollar value is quite stable, although subject to slight inflation.
But the value of other currencies against the dollar may change, reflecting the quality of their economy. And if the dollar exchange rate rises in a country, this does not mean that the dollar is to blame. This means that the local economy has problems that must be solved by the national government and business. Therefore, if the national currency in a country becomes cheaper, ask your government what they are doing wrong.

It’s the same as when a person gets sick, and having measured the temperature, which became 39 degrees Celsius, he will begin to blame the thermometer, whose normal temperature is considered to be 36.6 degrees Celsius

I would assume that it would also work other way around as well? I mean think about it, if dollar is high in your nation, then you could also create stuff for cheaper, and sell it for whatever American market price is. Lets assume that your nation is a poor one, and you make stuff cheaper, think of the smallest item you can think of, like lets say eggs.

Let's assume that since you are a poor nation, eggs are 5-10 cents each, but in USA it is 1 dollar each, that means if you sell for 50 cents, you are still selling at half the price and you are still making 10x more. As you can see here, the poorer nation benefited here, and USA didn't because the farmers who sell eggs couldn't compete. There are pros and cons to this situation for sure.

That is it, dollar needs not to be blamed. If the currency of a country is depreciating that means the country needs to work very hard to improve their economy, this will make the currency of the country to appreciate.  Their is no need to place developed countries on this. Every country is expected to work on their economy with this its possible for the currency of the country to have good value.

It doesn't make a valuable sensible to displease others and pleases the other. This would only be seen senseful at the point of dialoguing with a sentimental situation. National economy is a competitive development that everyone wants to grow up in other to meet up with the economic targets. Just as said that there's is no excuse for failure so I don't think it's the accused of rise of dollars that's being the bone of contentions in such a case but the governing and the economic regulatory system.
Most of these underdeveloped countries do have resources to even do better than the developed countries but due to mismanagements and selfishness in their governing system they'd just remain stagnant without an elevation to attract develops and increments of economies to their societies so they basically relies on the foreign importation of products while they've resources supposed to attract foreign investors and also how they could export their own products with the international sectors. Hopefully these are factors to increase the economic levels of the underdeveloped countries but they'd just ignore to sit up Instead they're contented in settling for less.
This happens most in the African continents and if by ways a country government decides they'd not bring in development and also enhances advanced developments to their countries then there's no magic to be done about it. Just so it shall be because they have the balls at their courts and not the internetional sectors such as hands Maybe pointing at the US dollars. I say Nil to the accusation.

Rising dollar isn't only an annoyance; it chokes poor economies, right? As their purchasing power declines, these already precarious nations fall further. It's about being barred from global trade, not just not being able to meet up. How to approach this is the question

This beast is multidimensional. The dollar makes imports cheaper for Americans but exports more expensive for everyone else. This imbalance worsens economic inequality. We need a coordinated effort to correct these inequities. Solutions? Complex yet doable. Consider diversified economies, less dollar dependence, and regional trade agreements

Don't kid ourselves. Systemic global financial mechanisms must be addressed to reduce dollar dominance. Financial innovations like currency swaps and regional financial instruments are needed to mitigate these changes. The aim? To create a fairer global market where developing nations aren't at the dollar's whim

Not only underdeveloped countries, developed countries also feel the impact because debt continues to increase due to the rise in the dollar. I imagine even 10 cents if the debt to the US is billions of dollars then the country will be harmed. Therefore, there must be a change to not be dependent on the dollar. Our country's currency is getting weaker and finally the government is starting to raise taxes on the public. In the end, we are the ones being sacrificed, but there are several steps such as reducing imports, increasing local products, MSME must continue to be supported so that the government can minimize problems.
It is clear that underdeveloped countries cannot be helped anymore, plus the economic crisis is getting worse, it is even more difficult because their natural resources are not reliable, poverty, unemployment and crime rates are increasing.

I think people should start looking at bright side of this issue. When Americans or Europeans have better purchasing power than rest of the world, companies can become very competitive. For example imagine you have Mexican company which has very low operating costs in terms of usd. Your profits would quickly grow if you are exporting from Mexico to USA. If you go public with that company selling shares through Mexican market, Mexican people may profit a lot by investing in it.

If the value of the dollar increases in any country, it happens in the context of that country. To control the appreciation of the dollar or to solve the problem of appreciation lies in the country where it is against the currency. The rise in the value of the dollar is caused by a country's export earnings remittances inflation money laundering and other internal problems. Of course it is worth noting that when the value of the dollar increases, the opposite value of other countries' currencies increases at the same rate. So it does not effect on the dollar-producing country. However dollar appreciation is definitely a threat to any country's economy so that country should address its internal problems.