So, while exchange rates facilitate durable external adjustment, the expenditure switching effect of a currency weakening
, or its negative impact on trading partners, should not be overplayed.
The EBRD said, 'Moldova is going through a particularly difficult time - a banking crisis, currency weakening
and a sharp economic decline.
The pressure we have been noticing in global stocks this week (as a likely reaction to the lower oil prices) is weighing on the USD, with the major currency weakening
against the Euro, UK Sterling, Swiss Franc, Japanese Yen, Canadian Loonie, Australian Dollar and Kiwi Dollar yesterday.
However, while the telecom company notes a 4% growth for its Sudan operations, the growth figure in Sudan's local currency, the Sudanese pound, is reflected to be higher because of this currency weakening
dramatically against the dollar in this year.
The company warned that growth in emerging markets continues to slow as a result of significant currency weakening
. Its shares closed down 3.4% at 2358p.
politicians seek currency weakening
in order to win votes in manufacturing states, then they will hesitate to invest.
The bank is worried about the currency weakening
further as it would push up the cost of imports, drive up already stubbornly high consumer price inflation and risk a widening of the current account deficit, which hit a record 4.8 percent of gross domestic product last year.