Caused by global inflation due to “Corona” and the Ukraine crisis
Emerging markets found themselves facing 5 huge crises, resulting from the global inflation problem that accumulated as a result of the measures taken during the “Corona” pandemic, and then the repercussions of the current Ukrainian crisis, which reduced the supply of food and energy and increased their prices, which are the two main components of the inflation basket.
The provision of the dollar is the most prominent of these crises, since without it, countries cannot import their basic needs of goods, products and services, which is reflected in the investment climate in the country and industrialization and thus growth, which is another crisis in the face of countries now, since maintaining growth requires not to raise interest rates. necessary to curb inflation.
Therefore, these countries have no choice but to resort to countries that have large cash reserves, but these countries have also been affected by the repercussions of inflation. However, what the latter possesses of a required international currency such as the dollar or the euro, protects it in times of crisis, as is the case with other countries. major and Gulf countries, or through financial institutions as well.
According to experts surveyed by Asharq Al-Awsat, given the current data, emerging countries are facing 5 huge crises: dollar shortage and difficulty in providing it, maintaining growth and not going into deflation, managing financial resources in a way that ensures the continued flow of goods and products, and maintaining Employment rates, and the size of debt in relation to GDP.