The resolution for inflation in major African countries.

irhact

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Quote from: Cryptomultiplier on May 12, 2023, 03:40:47 PM

As highlighted above, one of the most important control measure that most African countries has adopted in recent times, all in a bid to curb inflation has been to manipulate the interest rates. Various countries in the region had to either reintroduce new currencies, paired with USD or hiked interest rates. Although several tentative methods have been deployed but these standout as the major and immediate response on the current situation experienced in these African countries.

Are there reports of your statement been accurate that most government in Africa are manipulating their interest rate all in the bid to fight inflation or this are just your words. Corruption is the main problem of Africa, without corruption, the countries in the continent should have been able to be among the top countries in the world due to the resources they're blessed with.

For African countries to fight inflation, they have to stop depending on the western world for aids and start standing up for themselves. They have the resources, they should make good use of it to grow their economy, they should elect credible leaders and not corrupt ones.

EarnOnVictor

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Quote from: Cryptomultiplier on May 12, 2023, 03:40:47 PM

Quote

Editor’s note: This story is part of Mariblock’s “State of Fiat” coverage. Digital assets such as bitcoin are seen as competitors to central bank money. We consider it worthwhile to inform our audience of the state of their local currencies.
Policymakers across the continent scramble to implement measures to combat the spiraling inflation, including introducing gold-backed digital tokens and hiking interest rates.

Africa is taking the backseat in the world's economy, their leaders are corrupt and are ineffective in positive policy making. Although there is global inflation, the aforementioned issues would surely aggravate the woes of inflation in the continent.

That said, it's also good to know that working to improve the internal economy is the solution to economic woes and inflation, not Bitcoin or Gold-backed digital tokens. Everyone is looking at ways to bypass the economics of the world but it doesn't work that way. Imagine all countries are now spending Bitcoin and Gold-backed tokens instead of their local currency, how would they know their worth with inflow and outflow?

The suggestion is only good for investment and investment can only be embraced by some sectional people which still does not solve the issue.

Hispo

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When I think about measures to control inflation in countries like those in the African continent and some cases like Argentina or Venezuela in the American country it comes to mind something like creating a new standard using raw material produced in the country itself as colateral. For example, if the country is rich in Iron ore or copper ore, why don't you create a iron or copper backed currency instead just to focus in foreign FIAT or gold. ?

Those are commodities which have value in the international market, which means they would have enough liquidity in case the central bank or some private holder decided to sell some collateral for FIAT.

coupable

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Setting a balance between inflation and interest rates is crucial for maintaining a stable economy. But of course, it is not easy at all, since major economies suffer from the effects of inflation on their economies.
It is important to note that any measures that any country may take to improve its economy can affect other countries. For example, if one of the countries raises interest rates to resist inflation, this will necessarily affect the volume of investments since international investors will search for better offers in other countries, and on countries that depend mainly on exports to that country.

Zaguru12

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The reason why this stands out today is because, the inflation that is generally faced by each country or around the world is the one that the number of demand of goods are far greater than that of the supply either through lack of importation of such goods or the cost of production is expensive. So for the government to curb this they end up increasing the interest just to reduce the demand rate. Although this is a temporary solution because if an increase in interest rate persists and the inflation continues it usually leads to recession.

Quote from: Wiwo on May 12, 2023, 03:57:37 PM

Hyke in interest rates is not only peculiar to African countries, most countries around the world including the United state have hard reason to raise interest rates at some point.

This is the route taken currently by the US FED, the interest has been reported to been increased to almost as high as 5%, although the there is a decline in the inflation rate since this few months but the FED feels they can’t just stop now but till they meet there target of 2% interest. Mind you this inflation raised because of the cost of energy due to Russia and Ukraine crisis. And the interest hike has helped reduce the demand
So this is not just an African thing

Wiwo

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Hyke in interest rates is not only peculiar to African countries, most countries around the world including the United state have hard reason to raise interest rates at some point, and most countries around the world have taken this route to salvage the worsening economic situation and the negative impact of the cover 19 on their economy and value of the currency, coupled with a high rate of internal inflation.

One of the significant factors that have brought the high rate in the price of basic goods in the local and international market against Africa is their economic states, take Nigeria for example, the country has a hard record of multirecessionssion in this passing administration, and the current economic situation in the country is as a result of the impact of the multiple recession.

This is similar to all other African countries facing similar economic crises, the inflation rate is over the roof and the only available source for government to increase the reserve and expenditures is by increasing interest rates and sorting new tax possibilities and this has had a greater effect on the price of goods unt he market and inflation rate have also been boosted due to that increase in interest.

Cryptomultiplier

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Quote

Editor’s note: This story is part of Mariblock’s “State of Fiat” coverage. Digital assets such as bitcoin are seen as competitors to central bank money. We consider it worthwhile to inform our audience of the state of their local currencies.
Policymakers across the continent scramble to implement measures to combat the spiraling inflation, including introducing gold-backed digital tokens and hiking interest rates.

As highlighted above, one of the most important control measure that most African countries has adopted in recent times, all in a bid to curb inflation has been to manipulate the interest rates. Various countries in the region had to either reintroduce new currencies, paired with USD or hiked interest rates. Although several tentative methods have been deployed but these standout as the major and immediate response on the current situation experienced in these African countries.

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