#currency devaluation

When he came to power in 2019, President Rajapaksa decided to cut taxes. This meant the government had less money to buy foreign currency on the international markets to increase its reserves. When Sri Lanka's currency shortages became a really big problem in early 2021, the government tried to stop the outflow of foreign currency by banning all imports of chemical fertiliser, telling farmers to use organic fertilisers instead. This led to widespread crop failures. Sri Lanka had to supplement its food stocks from abroad, which made its foreign currency shortage even worse. The government has banned the import of a wide range of "non-essential" items - from cars to certain types of food and even shoes. One way that countries can boost their exports is to cut the value of the currency, but the government refused to let the Sri Lankan rupee fall against other currencies. It finally did so in March 2022, and the rupee fell more than 30% against the dollar.

Queues form outside petrol stations and outside local government offices offering cheap bread. And opposition parties have called for snap elections and rallies. When the lira slumped 18% in one day on 23 November, there were small protests and dozens of arrests. But the most visible display of public dissent is among younger Turks on Twitter, Twitch live streams, TikTok videos and YouTube. "I am not happy with this government at all. I cannot see a future for myself in this country," one young person told a reporter from a YouTube channel.

China reported more signs of a weakening economy on Wednesday, with factory output falling to a 17-year low and high unemployment. The report fed fears about a broader global slowdown as the trade conflict appears to be stalling some of the world's most powerful economies. Several factors have contributed to the market turbulence in recent sessions, including China's threat to devalue its currency, massive protests in Hong Kong that could prompt a response from the Chinese government, an escalation of the US-China trade war and the flight to bonds. The trade roller coaster has fostered a feeling of uncertainty among American businesses, making it more difficult for companies to make long-term plans.

.@ITMTrading @DanielaCambone

Economic warfare: China to deploy economic 'nuclear option'? - Times of India

Halting the falls in the Turkish Lira is the only way Turkiye can control its soaring inflation