The current up & fall of the USD & its effect on developing countries

The value of international currencies, including the U.S. dollar (USD), is determined by a variety of factors, including interest rates, inflation, political stability, and the overall strength of a country’s economy. The value of a currency can fluctuate over time based on these and other factors.

Currently, the USD is the dominant global currency and is widely used as a reserve currency by central banks around the world. The value of the USD is influenced by a variety of factors, including the monetary policies of the Federal Reserve (the central bank of the United States) and the overall strength of the U.S. economy.

The value of the USD can have significant impacts on developing countries, particularly those that rely heavily on exports to the United States or that have large amounts of debt denominated in USD. If the value of the USD rises, it can make exports from these countries more expensive, which can lead to a decline in demand and a negative impact on their economies. Conversely, if the value of the USD falls, it can make exports from these countries cheaper, which can increase demand and boost their economies.

It is worth noting that the value of the USD can also be influenced by external factors, such as the performance of other major global currencies, geopolitical tensions, and the overall state of the global economy. These factors can all contribute to fluctuations in the value of the USD and can have both positive and negative impacts on developing countries.