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NEW: Expert says US interest rate hikes causing ripple effects in developing countries

The Sunday Mail

The successive US fee hikes have despatched shockwaves into creating nations, particularly these in Africa, a scholar has mentioned.

The US coverage measure could have a cataclysmic impact for a lot of creating nations around the globe, as “this measure, for positive, is not going to put smiles on (these dealing with) already troublesome challenges,” mentioned Charles Onunaiju, a global affairs analyst primarily based in Abuja, advised Xinhua in a latest interview.

In its newest fee hike, the US Federal Reserve raised the rate of interest by three-quarters of a proportion level and indicated additional hikes in coming months as america seeks to rein in inflation.

The results of such hikes on the economic system of creating nations will develop into extra obvious by the day, mentioned Onunaiju, who has authored a number of books on worldwide relations.


“When you find yourself a serious energy, you’re not pondering by way of your folks alone. You need to assume main energy duty,” mentioned the skilled, urging US authorities to think about the ripple results of the nation’s insurance policies on creating nations.


For Nigeria, essentially the most populous African nation, Onunaiju mentioned the cruel results of the US coverage are obvious.


Like many creating nations, Nigeria makes use of the US greenback as a serious worldwide foreign money and thus should face a raft of challenges together with the depreciation of its personal foreign money and a slowdown of worldwide funding.


Given the US greenback hegemony, he famous the denominated greenback debt of creating nations would proceed to balloon and basically result in financial slowdown.


“We could have points of nations stripping down. And these are a number of the penalties that can observe from this type of measure,” mentioned Onunaiju. – Xinhua


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