Africa Becomes A Casualty In The War Against Inflation As Dollars Dry Up

Africa Becomes A Casualty In The War Against Inflation As Dollars Dry Up

Share to Linkedin A woman walks out of a currency exchange shop displaying a giant US dollar banknote in the Zamalek ... [+] district of Egypt's capital Cairo on August 24, 2022. - Depleted foreign currency reserves are casting a shadow on Egyptian streets, with the government moving to dim lights to free up energy for export. More natural gas exports means more hard currency, a dire need as experts say a new loan from the International Monetary Fund (IMF) and an adjacent currency liberalisation is inevitable. (Photo by Khaled DESOUKI / AFP) (Photo by KHALED DESOUKI/AFP via Getty Images) African countries are finding it increasingly difficult to obtain hard currencies to buy imports and make payments to overseas investors as the region becomes an unintended victim of the developed world's post-pandemic fight against inflation. Ironically, the situation has kindled inflation rates as high as 30% as the continent's own currencies weaken, and there is no quick fix: it would take increased exports and creation of domestic production to replace imports to counteract the trend. "The proximate reason for a dollar shortage is the pressure on the balance of payments as a result of the so-called rolling crisis impacting many