"Over 50% of low and middle-income countries' sovereign debt is denominated in foreign currencies, mostly the dollar. With a rising dollar, the cost of servicing the debt increases. That means more government spending on debt servicing and less in productive investments serving their industrialization and development objectives," said Karim Karaki, emphasizing the severe impact of the strengthening dollar on developing economies.
David Omojomolo, an economist, noted in a research report that Trump's additional tariffs and a rising dollar present a "clear worry" for African nations, complicating their access to global capital markets.
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