DUMA GQUBULE: Sri Lanka suffers for losing its monetary sovereignty

Over the past four decades, every developing country currency crisis — including Mexico , East Asia , Russia , Brazil , Argentina , Turkey , Lebanon and Zambia — arose because of a loss of monetary sovereignty after the accumulation of foreign currency loans or futile attempts to defend a currency peg.

The first of these currency crises was probably the worst. After Mexico defaulted on its debt in 1982 as a result of soaring interest rates in the US, the crisis spread to more than 40 developing countries in Latin America and Africa, which had also taken dollar-denominated loans. In Latin America, the crisis resulted in a lost decade — La Década Perdida.

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DUMA GQUBULE: Sri Lanka suffers for losing its monetary sovereigntyOnce a country commits the ‘original sin’ of borrowing in foreign currency, the walk to hell is short 🔒
Source: BDliveSA - 🏆 12. / 63 Read more »

Sri Lanka shares plunge as Buddhist leaders ask govt to resignMonday was the first morning of trade on the Colombo bourse after a two-week break, during which the government imposed a record interest rate hike and defaulted on its $51 billion foreign debt.
Source: ewnupdates - 🏆 30. / 53 Read more »