Currency speculators harm for less developed countries, Business Economics

How do currency speculators harm for Less Developed Countries?

Private capital inflows can be short term and speculative. Speculators shift funds in a Less Developed Countries at low exchange rates, notice the currency appreciate and in that case sell the currency primary at a profit. The resultant currency swings are very much destabilising for balance of payments (BoP) domestic prices.

Private capital inflows and subsequent flight both are a factor into current economic disruption experienced through Argentina.

Posted Date: 8/29/2013 7:20:25 AM | Location : United States







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