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.

It is possible. Just like here in crypto, when alts dump, BTC rises. It is because the demand have transferred from the other but a currency can still depreciate on its own. In cryptos, it is because the coin has a weak fundamentals but if it's a local currency, their governments and banks are responsible for its collapse.

This all mean, no matter how blessed the country are with a good resources but if its government and banks have done something inappropriate, they can still end up being poor. Yes this is a global issue because other country leaders are the only ones who can help discipline those kind of attitudes. We can only hope for the best of their recovery.

Does the Dollar actually increase? I don't think it does. All fiats lose value on the long run and US dollar is inclusive. The dollar doesn't actually gain, what happens is that the currencies of the said underdeveloped countries depreciates when pegged with dollar. Dollar is the trading peer in the forex, so when a country's fiat is depreciated, it looks as if dollar is increasing, while in a real sense it is your own country's currency that is lossing value. This is why it is important for countries to protect their currency in order not to allow it fall freely. Just like the battle between the Nigerian government and binance.

Unfortunately the problem here is the poor leadership of any countries that use the dollar as their quasi-currency, instead of their own local currency. If your country is so badly run that you have to utilize the currency of another because it is more stable, then the only people you have to be angry at is your own politicians. America is free to play it's own games and set it's own rules with a currency that they control. They will, to a certain small degree, try not to destabilise the situation from their side - but if your local currency is falling then they do not have the ability to fix poor economic policies of other countries.

The more it exports, the more people need its currency to buy that stuff. This demand can actually boost the local currency, making exports cheaper for others and attracting even more business. It's a win-win!

But just exporting a bunch isn't enough. To truly be the belle of the international ball, a country needs to make its currency the talk of the town. This means encouraging businesses to use it for transactions and creating a stable, predictable environment to make investors feel all warm and fuzzy. Think of it like building trust with your friends – the more reliable you are, the more they like you.

Sometimes, governments might print more money to get things going. It's like giving the economy a quick shot of espresso. While it can give a temporary boost, it can also backfire. If the money supply grows faster than the economy itself, it can lead to inflation, making the currency less valuable.

Yes that's correct, dollar has nothing to do it's all lies in the hand of the leaders of the nation which inflation has reduced their currency to put up policy and work out strategies to meet up where the lapses is.

Dollar only play it role when foreign exchange is made in the international market which most time has nothing to do with the local currency, it's when the nation to who inflation has reduced it currency is totally dependant to foreign exchange and trade.

Even if a nation export less but produced what limit them from importation the currency will be stable and can't be hit by inflation so easily when dollar rise.
Everything here is policy of government to maintain it currency not dollar.

Let me say that while you are partially correct about how the dollar's increase affects some countries, you are also incorrect about how it affects some developing nations, as these nations benefit from other nations' economies. However, some developing nations are the ones who create difficulties for themselves. For example, while many developing nations complain about how the dollar's increase affects them, did the prices of the goods they sell in the market also decrease when the dollar's value decreased? They will claim that the dollar is to blame for the unchanged price of market goods.

I have looked into it from both the left and the right, and I have discovered that these days we are the ones who always want to see each other lose. Because of the way people are complaining about dollar increases, many people are not using Binance, and from what I understand, this is not a problem with dollars; rather, it is a group of people who are trying to make life difficult for others. These businesspeople are also one of the main issues in every country that are complaining about dollar prices because there are many goods that the dollar didn't affect, and they all point fingers at the dollar in order to take advantage of the chance to sell their goods to get profit.

I don't know if someone has already share this perspective, but from a point of view of freelancers who live in underdeveloped country while working for international clients and getting paid in USD, the strengthen of USD is a bless. I don't need to worry when the basic needs in my country is skyrocketing, because I am getting more money too after I exchange the USD to my local currency, compared to other workers who work locally their payment are still the same.

Tho it doesn't make me significantly richer, the increase of USD help me in a difficult time like right now when the price of almost everything is increasing, even some of the stuff is doubled in price.

America definitely exports its own debt all around the world because USD is a global currency. When the American dollar is getting stronger, currencies of other countries is getting weaker and their country is getting poorer. Poor countries usually have debt in USD and it's getting expensive for them to pay the debt back. By the way, if it wasn't USD, it would be another currency and the situation would be the same or worse, so I don't blame USD but fact is fact.

There is definitely a beef between you and pooya, you two are like water and oil

It's easy to blame others, that's all. It's easy to tell your people and make them believe that someone else is the source of all of their problems and not the inner group of politicians. Since the average Joe is dumb and represents the majority of the country, this trick works.

Yeah, exactly, you' not starving , you're just out of food !  /s


 They are the only true influence, that's why some countries have not had their currencies lose value against the USD while some are adding a zero each month, the more idiotic and incapable the government the deeper the hole in which it dragged both the country and its citizens.


Kindergarden level logic:
If the currencies of countries that form SHITS BRICS are losing purchasing power against the dollar and are ditched by everyone, how would another currency backed by the same countries be used more? Suddenly someone who doesn't accept rubles and rupiah because they are devaluing like there is no tomorrow are suddenly going to trust the same economics genus and accept it.

Seriously?
If the guys behind onecoin and bitconnect would come together and launch a new coins, would you buy it?

Obviously, you are getting it wrong. The dollar is not increasing in value in other countries; rather, its local currency value is decreasing on the general market, and this has to do with the economic situation of the country. If anyone is in the right place to find a solution to it,. It should be the federal government that needs to take action to solve the chaos.

However, the increase in the dollar, as you said, has various impacts on each individual. Yeah, the poor get affected as well, but those who earn in dollars or have friends and family outside of the country that send good tidings in dollars will not be affected.

At first glance, this is indeed a problem, especially on a global scale, especially for countries whose debt items are paid in USD, as you mean by assuming that they are unable to face the pressure to offset the increase in dollar debt and interest.

We also must not forget that although this can be used as an excuse, internal factors also have a big influence and impact if the wrong decision is made, for example government policy, infrastructure development, the level of corruption that occurs at almost all levels of government so that it quickly weakens the country's economy to the point where underdeveloped countries so it is not easy to recover to improve people's welfare.

and what solutions must be taken by the government, namely being responsive in strengthening internal economic infrastructure, implementing monetary and fiscal policies that are more stable and pro-people and increasing investment cooperation in the fields of technology and innovation as well as in the economic field. In my opinion, there are still national children who are able to overcome this problem, they don't necessarily have to be brought in from abroad.

A rise in the value of the dollar certainly affects economically underdeveloped countries. For example, in the country where I live, the value of the dollar is very high and the value of the dollar is constantly increasing. In my country now the price of each dollar is selling at 126 BDT before our dollar price was 80 BDT 86 BDT 100 and the current price of dollar is 126 BDT not only the price of dollar has increased. The ever increasing value of the dollar has increased the price of everything in my country including the price of gold so an increase in the value of the dollar in one country will increase the price of everything in that country and has a unique side effect.  On the unique side, the value of money will depreciate and the price of goods will increase. It is not possible from my country to suppress it because the economic condition of my country is very bad. But even if we are selling at 126 BDT now, it is expected that it will become 130 plus in a few days.

In my opinion, underdeveloped countries can brace the impact of an increase in dollar value by:

• Governments can implement policies to boost domestic production and exports, making their economies less reliant on USD imports. This could involve investing in infrastructure, promoting education and skill development, and providing incentives for businesses.
• A strong USD can also make the country a more affordable tourist destination, potentially boosting tourism revenue and foreign exchange inflows.

A country's economic foundation is the true driver of its currency's value. Strong domestic policies fostering robust industries, innovation, and a healthy balance of trade are crucial. Countries exporting more than they import see their currencies strengthen as demand for them increases. Conversely, excessive reliance on imports or unsustainable economic practices weakens a currency.

It's not just about the volume of exports, but also who's using the currency. Encouraging foreign investment and diversifying trading partners beyond the dollar can significantly boost a currency's appeal. This can involve denominating exports in local currency, making it more attractive for international transactions. While printing money can stimulate short-term economic activity, it's a double-edged sword. Excessive printing often leads to inflation, eroding the value of the currency and discouraging investment. Responsible monetary policy is essential for maintaining a stable and trustworthy currency.

It's important to remember that the world is not a unipolar system with the dollar reigning supreme. Other currencies, like the euro and the yuan, also carry significant weight, and regional economic powerhouses are emerging. Viewing things solely through the lens of the dollar can hinder a comprehensive understanding of the complex dynamics at play.

Dollars did not increase in any way since it's not operating its own market; it's a US currency. The reason why the dollar affects the currency of undeveloped countries is because if a country is not able to produce what they are using, they import things for their citizens to use. You can see that the traders of those items will be paying in dollars before they can be able to import those things since dollars are used in the US and most of those things are produced in the US, so from there you will see that those undeveloped country currencies will be depreciating; they will not get any value again, and from there inflation will occur.


Not even the issue of corruption: any country that cannot produce items for themselves will face this kind of situation because their currency will not be valued in any way, so the dollar will be ahead of their local currency since they use the dollar to purchase things and sell them. Although I understand when you said they don’t allow people with skills to show themselves so they won’t take another person's position, things like this happen, but when it comes to things like this, for me, those things like skills also work since if the citizens are able to produce them, the country won’t suffer from these kinds of conditions.

When countries have signed memorandum here and there to settle trades in dollars, inflation is what the suffered from later. Undeveloped countries don't have high volume of exportation, they import most of the things the unused and because this settlement are done in US dollars, they struggle and fight other means to get dollar liquidity and this weaken their own currency because there is no demand due to low exportation. As long as this slavery OF dollarization continues, the economy will continue to suffer particularly the inflation.

Under developed and developing countries need to find ways to pay for item not only for dollar but other currency and if they want to make sure that their currency is strong, their fundamental consumption should be on their local products and not dependent on foreign goods to reduce importation and encourage exportation.

Only countries that depended on imports and exports and did not have good policies of controlling their exchange rates are affected; the effect happen when your country’s currency lose value to US Dollar, it is not that the Dollar increases in value but the country’s currency loses value which is mainly caused by inflation.

High demand and been dependent on importation is the reason behind some countries currencies to keep depreciating, if all countries will depend solely on their own products, their currency value will be intact and will not be affected yes by any country’s currency value.

Underdeveloped countries are full of corruption and nepotism, so the countries have no chance to changes. There are many great people in underdeveloped countries, but if those people doesn't have any relation of benefit for the civil servants, they won't support you or they will try to make you not able to show your potential because they're worried if you can take their sits.

There's no such thing about solution into this one on which this do really shows on what currencies are really that sitting on the top when it or against with other currencies. If the exchange rate
of dollar versus your local currency neither strengthen or weakens basing up on those known factors then it would really be giving out such effect on which this is something that would be casual.
There's no solution to that and it would really be giving out that huge effect considering that commodity and other needs would really be rising its price or value on which if you are someone
whose really that earning on average then it would really be giving out that huge effect.

For those who are earning online and earning dollars then this is something an advantage to them because they would really be able to cover up those additional cost or
add up whenever needs or cost do rise up into their country and this is the main difference in between.

What you said is true but I still blame this underdeveloped countries for such economic downtime, mainly this happens in African countries where the presidents and his appointees see public offices as a personal business that anything can be done without further questioning from the citizens, I strongly believe that many underdeveloped countries government knows what to do so that anytime dollar appreciates in the financial market they won't be affected, many countries lack production mindset and good policies, when there is production of both edible and other goods you will see that such currency will never be affected by the rise of dollar, stringent policies should be on ground in different parastatals, locally made made good should be encourage every purchase in the country should be done with the local currency, both payment in the hotels or worker in all level, import duties, with this policy such countries can stand without the wave of any currency.

Your idea of unwritten rule made me begin to think of some kind of international conspiracy. Maybe a higher government of a country conspices with the lower government of another country to continuously export and misgovern them. If so, to what extent and what purposes. It is increasing becoming real and understandable even to the dumb that the wastern countries are seriously manipulating and colonizing some underdeveloped countries to the understanding of their leaders and to the detriments of their citizens.

I think the government knows exactly what the solution is – but they don't have the option not to do it. Maybe this is what is called an unwritten rule that the government inevitably has to obey rather than relying on its own currency - but of course the main result is increased inflation and economic problems.

What we think is easy for governments to do is not what they experience. We only see the negative side of the government's performance in regulating and managing the economy – while the average will give a big zero as its performance score. Nothing is perfect when a superpower can dictate the economy of another country – the government will be considered a failure by its people.

Growing up, I used to think also that the cause of economic hardship of underdeveloped countries is as a result of the rise in the value of dollar but now, i know better. You won't really blame me for thinking this way because whenever prices of goods and services increase,  people often relate it to the increase in the price of dollar. A proper research has opened my eyes to the actual cause of the problem.

There are lots of factors that can lead to the devaluation of a country's currency. A country that has too much money in circulation will be battling with a devalued currency, this is where we can say inflation has set in. Most countries do not use their own currencies to their own advantage. Imagine a country that relies so much on importation where payments are done in Dollars, the economy will definitely suffer it. The major cause of hardship for underdeveloped countries whenever dollar rises is that they rely so much in dollar.
They borrow in dollars
Repay loans in dollars
Carryout International transactions in dollars
Even government officials use dollars for transactions
And when dollar rises, the economy crumbles  and those government officials who are making money from FX gains

The help that many of these underdeveloped countries are getting these days, have come in the form of them accepting to use the Yen or join the BRICS countries or use other currency like cryptocurrencies for purchase or and payments for goods and services even within and outside the country.
This BRICS currency is put forward as an alternative to the dollar and when these countries have fully started using it, am sure the dollar would be less used for international trade of which causes the hike in the prices locally after shipments or imports have been dropped.

Many countries have also had to increase their interest rates so as to combat the recession that follows dollar increase for these underdeveloped countries and it still does not help because the dollar is one currency that is widely used for forex and upon traveling or tourism, the dollar is most recognizable, easy to carry about and has much more value.

I totally agree with you on this. Also, I don’t think you can even say that dollar is decreasing if you aren’t comparing it with something. Dollar is like the base currency which you compare other currencies with so it has no issue. And like you said, the best way to show this is comparing that country’s currency with other big currencies.

Agree with OP, the increase in USD price can cause many negative effects on developing countries. I have a feeling that when the USD increases in value, other currencies will lose value compared to the USD. This makes imported goods more expensive, leading to increased inflation and reducing people's purchasing power. And also the debt burden, developing countries have large debt in USD. As the dollar appreciates, their debt burden also increases, leading to a higher risk of default.

And that is also part of the reason we see the polarization of the economy. With the coordination of countries around the world, developing countries can reduce the negative impact of the USD increase prices and promote economic development.

Absolutely. I found this an advantage if my local currency is depreciating it's value because my income online is based on the value of dollar meaning I get more of my local currency if I have to exchange my Bitcoin or USDT into my local fiat currency.

The only affected in this are those who are paid from their job directly with the local fiat here in my country that continue to decrease it's value yearly.

Your getting it wrong bro it's not dollar increasing in value, its the other currency falling against it, its like a trade of value, so most of them do a lot of import from foreign countries and don't even have anything to export to balance it, so the trade is always against their economy cause they have to buy dollar all the time. I know some underdeveloped countries with a at least good currency value, currency crash is the fault of bad economy management by the government and most times corrupt leaders.



Its not even really to your advantage if you think of it, cause most products are imported and are bought in dollar, if the currency continues to crash price if things in the country would get higher to compensate for the increase in dollar, so even if your earning in dollar its just quite the same thign, just the amount your getting in your local currency is quite larger than it used to be but its same in value in correspondence with the dollar.

This can be both good or bad depending on the situation you are in. I live in a nation that has a fiat currency that is weaker against the dollar, and that is something that benefits me but doesn't benefit other citizens in my nation. Something simple, like a playstation 5, could be as cheap as 300-400 dollars, and that may feel like a very little amount, these days kids make that much weekly from their part-time jobs in the USA.

However, in nations where 400 dollars is the minimum wage, how can someone spend and entire months salary on it? But for people like me, who works and makes 800-900 dollars (and even 100+ dollars from signatures here) we do end up making a good amount of money compared to other people in our nation.

Developing countries should focus on , ironically, developing their won economy and not care about exports, because if you're dirt poor and you have a negative trade balance no mater what other currencies do you're still goin to be in trouble.
A developing country with no service sector that relays more on imports is a recipe for disaster.


But , but, if the dollar is gone everything will be fine!
Hunger will stop in Africa, child exploitations in Asia, inflation in South America, there will be no more wars, everyone will be rich, ...
Magically something will happen, there is a preacher from Iran that is writing around here the end of the dollar is going to bring the third coming of all the prophets combined in one!

What this hate about the dollar really is it's just envy, incompetent governments, idiotic dictators that have no solutions for their actual problem and they blame the us and the dollar for everything, a pipe broke in the city despite on paper being repaired 10 times and in reality not once despite eveyone cashing the money? It's not corruption and incompetence, it's the fault of the reptilians!

I think you are seeing the problem of the undervaluation of currencies around of the planet from the wrong point of view, you know. It is not only about what the federal reserve of the United States decides to do, it is also about the central bank of your country does in order to keep your local currency strong and stable enough for your people not to resort to other currencies. I am Venezuelan, so I can tell you I have got much experience when comes to devaluation and economical problems tied to the undervaluation of our currency in relation to the United States Dollar.

Even if the Dollar of the United States disappeared tomorrow, your currency would not recover at all, you know. It would be still exchanged against other strong Fiats, like the Canadian Dollar or the Japanese Yen, even against minerals like Gold. Instead blaming the external entities in other countries, we need to see inwards and wonder what needs to be changed in our undeveloped republics for our currencies to become stable again and avoid the unnecessary printing of banknotes and the issuing of endless debt. Playing the victim is not a good approach to solve problems...

If the price of dollar increases, the underdeveloped countries will have many negative effects.  Because when the price of the dollar increases, the value of their conventional money decreases. Due to which they cannot keep up with the world market.  When the value of the dollar increases, the price of everything increases. But it becomes difficult to manage life with the currency of the underdeveloped countries in balance with that price.  Even if the price of the dollar increases in the world market, the salary of the job in the underdeveloped countries does not increase.  This creates poverty, crime, corruption.

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.

It's rather the depreciating local currencies of underdeveloped nations which causes the problem and that's why when you travel to those countries you have more buying power than the locals and I have a clear understand how it affects them and it impact every single person because trades happen in USD for export and import. For example the price of oil and gas will be increased in terms of local currency which affects the transportation cost within the country including food grains, building material and everything as these stuffs has to be transported across the country, also the same goes for international airlines the cost of tickets will be increased as they are calculated in terms of USD then converted into national currency.

Developing countries that depend on imports struggle a lot when the dollar's purchasing value increases because their economy is not good, salaries don't increase according to the inflation rate and imported products become expensive.

Yes, that's true. America doesn't care about what happens in other countries when they increase or decrease interest rates and being the number one reserve gives them a huge advantage. Other countries suffer when America is doing well because the USD becomes stronger and developing countries, that depend on imports experience more expensive lives. When the dollar has some problems, other countries pay for it too, that's why many countries want to create new economic blocks too.

Inflation is the biggest challenge for the economy since the appreciation of the dollar. A higher value of the dollar may bring some adjustment in the world economy countries the inflation developing countries will suffer the most. This may help boost exports in weaker economies and help curb inflation in some countries including the United States by lowering import costs. The current instability of the world's underdeveloped countries will make financial markets more vulnerable.

it could work both way though, its either the dollar just getting stronger than ever or the local currency is getting weaker, there are certainly many factors that comes into play with this thing.
but the general rule of thumb is that when local currency plummets it means people are escaping their investment from it to the stronger currency for the sake of securing their own wealth.
maybe this also the cause and main culprit why when a currency dipping it could dip further down its like domino effect trigger other currency to dip as well the foreign currency trader afraid that the same scenario plays out with their investment portfolio so they just try to seek refuge from such scenario that could potentially reduce their investment int half of it.
even worse if the economy of the country is also really weak like basically high in debt without any significant earning, the currency could instantly lose its value.

The US Dollar is not directly responsible for the deprecation of other currencies. However it definitely has some repercussions that will affect the global market. Most likely, products and good from the united states will be less preferred by other countries because of its high prices. Global trading might decrease.

On the other hand, united states will have a chance to save some expenses by importing more from countries with lower currency. Goods will be taken from underdeveloped countries and I guess for these underdeveloped countries, it is a good source of income but for united states they are just cutting on some budget they do not need to cut.

It might be a good thing for the us but their tourism might also take a toll. Definitely lots of people from other countries would have a harder time visiting the us. But i don’t think it will affect the entire tourism sector of the united states that badly

The value of dollar is not increasing but the inflation is low compared to other countries that you're defining poor such as underdeveloped nations where they may have been facing hyper inflation where the fluctuations are not under control for multi reasons.

Whereas government keep their reserves in gold not in their Fiat because as said it's nothing but paper.

The problem is not from dollar but from the local currency,  when the local currency lose value you will see that that dollar gains more value against it.  The cause of this can be economy challenge as a result of inflation,  when it happens like this your government needs to play a role to make it better for the currency to have value than dollar or to make it equivalent to dollar.  When the price of dollar increase is a result of poor economy from your country.

Yeah, the dollar that is weak , that it suffers from inflation, that destroys other countries and yet everyone wants dollars, making it stronger than other currencies despite it being printed and losing value....oh wait! 
If countries that are protected from dollarization are not suffering from inflation why is then inflation in Iran at 60%?
Probably because of ally the goods Iran exports to the US!
And why is inflation in Mexico 4% while they've become the biggest exporters to the US?

Put a sock in your de-dollarization,  it has become the laughing stock of the forum just as your energy crisis that never came!

You are confusing two different things.
First is that when US regime prints money out of thin air, they can use it to purchase "real things" from other countries. That is essentially exporting the inflation to those countries. Which means it doesn't matter if the country is developed, developing or under developed. The less they've dedollarised the more they'll be affected by that exported inflation.

Second is the fact that if the local fiat is being dumped, it is partly because of the local non stop printing of that fiat.
Additionally, the exchange rate being low actually means that country CAN compete in the global market and crush others. Why do you think China manipulates its own currency's exchange rate and keeps it down? That is how China became the strongest economy!

So if a certain country has a tough time competing in the global market, the problem is somewhere else. Like in the local economic infrastructure such as industries that even under developed countries have. The focus has to be shifted there and production should increase. That way the lower exchange rate is actually a great thing to have.

Like I believe many other must have said, dollar is like a a stand alone currency, and it's stability earned it the currency for world trades, every currency has the tendency to appreciate or depreciate against other currencies in the market, it all depends on the supply and demand on that particular currency.
I am not an economist, but what I have to say here is that, whenever a currency possibly trading against the dollar goes down in value, it's completely not the fault of the dollar, but solely as the result of the economic crisis of the country that owns the currency.

For example, Nigeria naira have been losing value against the dollar for a couple of months now due to the economic downturn or crisis in the country, is it appropriate for the Nigerian government to turn to the USA and blame them for the naira depreciation?, the answer is No, for if the Nigeria government will fix the economy of Nigeria, and make things stabilize again, the naira will start appreciating against the dollar.

Less developed or third-world countries shouldn't be affected by dollar increase because they were particularly taken into consideration when it was adviced that nations should trade more with China when dollar begins to increase massively in the future. Ofcourse, the rebellious ones likely ignored the advice or/and did the opposite. Also important to point out that this is not the best time for the weakest nations to mingle or ally with most western countries against themselves, their interest, or their neighbors  It will greatly backfire and put them in misery. Goats are too vulnerable to be mingling with lions in the time of anger and hunger.  The weak and vulnerable ought to be helping themselves rather than working with those who hate them against each other.

He said exports will attract the buyers because the cost production is cheap and imports are expensive because the local can't afford to buy it, which mean it's an exactly same with what you're saying.

So we're know it's better to produce in underdeveloped country and sell it to developed country, but unfortunately the vast majority people in underdeveloped country are lazy, not skillful, and below requirements standard.

But that's not really going to benefit the country in the long run, weak currency in global trades means that you've got a cheap export tariffs or something trade related but you're not really benefiting from it because you're paying a premium for those exports which is going to go to your local market much more expensive because you have to get some profits out of the payments that you've made in trades so in the end, the only one that's benefiting from this is the people that are on the outside of the country and not the people inside.

In my country, the local currency is tied to USD and the central bank has enough reserves to support it, so we do not have an inflationary effect, but I have seen examples in some neighboring countries of bad dependence on USD, most of which are for those countries that import a lot of products with a clear trade deficit, which raises the prices of goods and basic materials. It is weakened because the strength of the dollar means that raw products will be exported abroad, which means an increase in prices, and that the imported materials that the market depends on will be at a high price, which will lead to an increase in prices.

The middle and poor classes are affected by this type of inflation compared to the upper middle and rich classes.

Blaming USD because it's better than other currency is like blaming the rich because you're poor, it's not make sense.

If you don't like your local currency because the inflation rate is higher than USD, you can save your money in USD, even better you can invest your money to stock, gold, Bitcoin that can hedge against inflation.

If you're poor, you need to work very hard and if you have a chance, you need to work overseas in first world country, that's the fastest way to change your life.

this is basically coming from a place of lack of proper knowledge on the reality that the dollar isn't increasing with respect to other currencies. What happens is that the value of other currency reduces it value because of the economic strength of those developing countries.

In the first place, if those developing nations had put in place measures that ensures that they are depending more on locally manufactured goods, then these devaluation of thier currency wouldn't become a thing of serious concern to them. But because they all depend on product from countries that uses the USD, we have situation like this that it almost seems as though thier economic strength depends on the value of thier local currencies to the dollar.

Well, the US Dollar gave some stability to international trades.You need a stable currency for global trade and also trust in that system that it will be safe and also widely accepted.

BRICS are throwing a spanner into the global market by trying to replace the US Dollar with something else, but it is still too early to see if that is going to succeed. 

global economy is more complicated than many people think I guess, there's certain country that purposely trying to make their own currency cheap maybe to increase global trades or something like that its overall not a subject that can be understand within night there are certainly many things involved but I think many countries of weaker economy strength getting their currency value depreciating when dollar appreciate probably due to the fact that people moving their money from the foreign exchange market of a smaller economy country to USD just to keep their wealth from plummeting but i may be wrong.
overall it has been like this since many decades ago country with weak economy strength will always get the shorter end of the stick that's just how it works.
that's why if you live in a smaller country with their own currency keeping wealth at USD is one thing because it can avoid you from the unnecessary problems that only
further complicates you dealing with your own money.

It actually depends. A weak currency doesn't necessarily mean the country won't anymore engage in global trades. As a matter of fact, a weak currency could actually be designed on purpose. It could actually be intended by way of a policy to be used as a strategy in order to increase trades, exports in particular. In which case, since the currency is weak, exports are cheaper, making them more attractive for buyers compared to their competitors. Of course, there's also a need to balance since a weak currency would also mean imports are expensive.

One of the things that prompted many countries to create new economic blocs and partnerships is that the US Federal Reserve, when it continued to raise interest rates, did not care about other economies around the world and was concerned with the American market, and many central banks found themselves forced to raise interest rates, which harmed many monetary policies.

High interest rates make it difficult to provide liquidity for investment in these countries, which reduces the level of desired investment and increases the costs for all new investments, including those vital investments that the government needs for development.

If you have time, this is a good article to explain these effects https://www.brookings.edu/articles/how-have-fed-interest-rate-hikes-affected-other-national-economies/

I think you are trying to attribute the dollar effect as punishment for bad economies, maybe...!  that they are intended that way by their politicians, in any case its effect is not causal, it is a consequence of Bad regional economies.
On the other hand, there are influence also at developed countries.

 ^{(The adjective increase is perhaps not very suitable for your idea)}

When underdeveloped countries heavily depend on importation, when there is bad economic policy in the country, it makes the value of their local currency loose value against the dollars, the importers spend more money on importation and clearance of their goods, and because of the more money spent on importation, they increase the price of goods and commodities and that tightens the economy for the low income earners and others just struggling to survive.

If you look at this countries having their local currency devaluing every time against the dollar you will notice something similar and that’s the issue of attracting more users of their own currencies by even other countries. This is achievable only if the country exports more of their goods than importing. This exportation should be adviced in local currency to make the local currency gain more popularity and attract investors too to have the local currency of the That exporting country which actually strengthen the local currency and economy.

The other reason of why the local currency of some countries are devaluing against dollar or other currencies is the fact the excessive printing of paper money gives room for bearish sentiment of that currency because the demand value is always in a scarce currency

The dollar does not directly control the appreciation not depreciation of other countries currency. Their economic policies as well as the rate at which good and services produced that could be exported to other countries. That could in turn, determine the strength of their currency against the dollar.
The over reliance on the dollar by these countries also help put them more into the mess they’re already facing. It’s not nearly a global issue as you think it is as this isn’t a new issue.

Work on your economy, have a favorable balance of trade and put in place policies to attract new and favorable investment opportunities. Then watch your economy and currency grow.

This relationship has always been present, people in unstable countries have historically and are likely to continue relying on the US dollar in the near term. Firstly because it is in America's interests to keep this relationship going, as they benefit from being the "reserve currency of the world" in many different ways, but one of the major benefits is being able to loosely influence financial compliance. America also gains a lot because they're able to control the printing press to their advantage compared to most countries. That being said, people have flocked to this currency because it at least so far has always been good on it's debt obligations and the government - even though it may not seem like it at certain times - has always been relatively stable in comparison to some other places, like China for example.

Nothing is wrong with the dollar increase and besides we have other currencies that are higher than the dollar both fiat and digital currencies e.g,  1 BTC = $51k+ so should we now say that the increase in the value of bitcoin is causing under development in the united states?

The answer is NO
Why because the US economy is stabilizingd and has the internal capacity to control its economic demands and also working to manage the global economic meltdown,  same as developing and underdeveloped countries around the globe.

Global inflation is high and this is telling highly negatively on the economy of most countries around the world ss its impact is more felt in highly corrupt developing and underdeveloped countries whose currencies are weak and whose internal GDP is in the negative.

It's not the dollar increasing it's the local currencies of those underdeveloped countries which is depreciating against it. The dollar is the staple currency for global trade and while it flictuates, it's nothing close to the level at which many of those currencies do.

Dollar cannot directly cause a drop in the value of other currencies. It's all down the their economic policies and amount of imports which puts the currency to use in global trades. Check those currencies against GBP or EUR and you'll notice the same depreciation.

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.