The scarcity of the US dollar in cash has exacerbated the financial crisis in many countries of the world, including some African and Asian countries. Among the hardest hit are Sri Lanka, Nigeria, Pakistan and others. informs Bloomberg agency with reference to market participants.
“Hospitals in Sri Lanka are postponing operations. International flights in Nigeria have been suspended. Automotive factories in Pakistan were closed. In some of the world’s most vulnerable developing countries, the situation on the ground is dire. The absence of a dollar limits access to everything from raw materials to pharmaceuticals.
As a result, Hasnain Malik, Emerging Markets and Frontier Markets Strategist at Tellimer in Dubai, urged potential investors to be more cautious when investing in the economies of the riskiest countries. For the foreseeable future, these states may face an intensification of the crisis against the backdrop of continued dollar shortages.
“A real crisis is breaking out in these troubled countries, and for some, the situation could get worse. Investors will need to be even more careful in testing vulnerabilities and distinguishing country risks so they don’t get caught off guard for the next Ghana or Sri Lanka.”
February 5 Mark Mobius, founder of Mobius Capital Partners He insisted Investors are more cautious about investing in the Chinese economy, among the problems associated with withdrawing funds from China. Local authorities have imposed extremely stringent requirements on foreign entrepreneurs to provide data on the origin of money, for example, over the past 20 years.