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Dollar rises put pressure on foreign transactions to countries
3/24/15
Cairo: agency said «Moody» credit rating on Monday that the increase in the US dollar exchange rate is putting pressure on foreign transactions for some of the countries of the world, as reflected in the decline in the price of their national currencies and foreign exchange reserves, as well as increased capital flows to the outside, and declining flows capital to the interior, and thus harm the countries that need external Dkhmh.oadavc «Moody» funds in the report has been viewed Monday «The expected rise in interest rates in the United States, and declining growth prospects in some countries, makes investing in these markets less attractive »- according to news agency Alonadol-.
The prevailing expectations that the Federal Reserve (Fed) to raise interest rates in the months Almqublh.ozkr report «Moody» that the current pressure on many emerging markets is similar to what happened in mid-2013, when the financial markets braced for the possibility of tighter monetary policy in the United States She added that, with respect to States which external debt is rising dramatically, such as Malaysia or Chile, they are prone to drop their national currencies exchange rate against the dollar, which increases the cost of the debt that was borrowed in foreign currency service, and perhaps also the foreign debt in local currency Oadha.opaladhafah In addition, countries that suffer from large current account deficits, such as South Africa, are vulnerable to external pressures include weak capital flows making them suffer from it more difficult to finance the deficit.
Moreover, it is for some countries affect low commodity prices on export revenues, and reduce the current account surpluses or raise the deficit, in countries such as Chile, Colombia, Malaysia, Peru, according to a report «Moody». She said the agency that in Brazil, Colombia, Mexico, central banks have chosen to maintain on foreign exchange reserves and allowed the value of the currency down, while others worked the opposite. In Malaysia and Chile, for example, used the central bank foreign exchange reserves in an attempt to stop the devaluation of local currencies in Okpr.oadavc «Moody» that «the erosion of foreign exchange reserves is a negative factor for the credit rating .. especially in relatively low reserves of countries, and For that matter of the payment of external debt later. »
In contrast, foreign exchange reserves rose in India, Indonesia, and the two exchange rates change significantly. The current account balances in both countries have improved since 2013, and accelerated capital flows in preparation for the reform of the financial and economic policies, after the political changes in 2014, which contradicts the general trend in emerging markets, which saw a decline in the head Almal.oahar flows report that with the This has resulted in high influenced by Indonesia, down global commodity prices, and increased reliance on foreign funding, to some decline in the local currency's exchange rate in recent weeks. In the case of India «Moody» says the outlook improved growth prospects have attracted large inflows of capital, pointing out that the risks faced by India is in the lack of growth or targeted policies, and so over the next few months, which may lead to large flows of capital to abroad.
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3/24/15
Cairo: agency said «Moody» credit rating on Monday that the increase in the US dollar exchange rate is putting pressure on foreign transactions for some of the countries of the world, as reflected in the decline in the price of their national currencies and foreign exchange reserves, as well as increased capital flows to the outside, and declining flows capital to the interior, and thus harm the countries that need external Dkhmh.oadavc «Moody» funds in the report has been viewed Monday «The expected rise in interest rates in the United States, and declining growth prospects in some countries, makes investing in these markets less attractive »- according to news agency Alonadol-.
The prevailing expectations that the Federal Reserve (Fed) to raise interest rates in the months Almqublh.ozkr report «Moody» that the current pressure on many emerging markets is similar to what happened in mid-2013, when the financial markets braced for the possibility of tighter monetary policy in the United States She added that, with respect to States which external debt is rising dramatically, such as Malaysia or Chile, they are prone to drop their national currencies exchange rate against the dollar, which increases the cost of the debt that was borrowed in foreign currency service, and perhaps also the foreign debt in local currency Oadha.opaladhafah In addition, countries that suffer from large current account deficits, such as South Africa, are vulnerable to external pressures include weak capital flows making them suffer from it more difficult to finance the deficit.
Moreover, it is for some countries affect low commodity prices on export revenues, and reduce the current account surpluses or raise the deficit, in countries such as Chile, Colombia, Malaysia, Peru, according to a report «Moody». She said the agency that in Brazil, Colombia, Mexico, central banks have chosen to maintain on foreign exchange reserves and allowed the value of the currency down, while others worked the opposite. In Malaysia and Chile, for example, used the central bank foreign exchange reserves in an attempt to stop the devaluation of local currencies in Okpr.oadavc «Moody» that «the erosion of foreign exchange reserves is a negative factor for the credit rating .. especially in relatively low reserves of countries, and For that matter of the payment of external debt later. »
In contrast, foreign exchange reserves rose in India, Indonesia, and the two exchange rates change significantly. The current account balances in both countries have improved since 2013, and accelerated capital flows in preparation for the reform of the financial and economic policies, after the political changes in 2014, which contradicts the general trend in emerging markets, which saw a decline in the head Almal.oahar flows report that with the This has resulted in high influenced by Indonesia, down global commodity prices, and increased reliance on foreign funding, to some decline in the local currency's exchange rate in recent weeks. In the case of India «Moody» says the outlook improved growth prospects have attracted large inflows of capital, pointing out that the risks faced by India is in the lack of growth or targeted policies, and so over the next few months, which may lead to large flows of capital to abroad.
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