The US interest rate hike led to the depreciation of currencies in the Middle East and high inflation

Xinhua News Agency, Cairo, September 22: The US interest rate hike caused the depreciation of currencies in the Middle East and high inflation

Xinhua News Agency reporter Chen Mengyang Wang Zhuolun

Affected by multiple factors such as the Federal Reserve's continuous interest rate hikes, the recent devaluation of currencies in the Middle East has continued to depreciate sharply, and the inflation rate has continued to soar, which has a serious impact on the national economy and the lives of the people.

On the 20th, the exchange rate of the Turkish lira to the US dollar was about 18.31 to 1, a depreciation of more than 50%compared to a year ago, and a decrease of more than 35%compared with the beginning of this year.

Lebanon has implemented a fixed exchange rate policy linked to the US dollar since 1997. The official exchange rate has remained at about 1,500 to 1, but the exchange rate of the black market has continued to decline recently. On the 19th, it fell to about 39,000 to 1, hitting a record low.

On the same day, the Bank of Syria adjusted the official exchange rate of the Syrian pound to the US dollar from 2814 to 30 to 3015 to 1, and the local black market exchange rate had reached 4,400 to 1.

Even in Egypt, which is relatively strong in local currency, the exchange rate of the Egyptian pound to the US dollar has fallen by more than 20%over the past six months.

While the local currency depreciated sharply, the inflation rate of many countries in the Middle East continued to soar. According to data from the Turkish Bureau of Statistics, the country's August consumer price index (CPI) rose 80.21%year -on -year, a 24 -year high. The inflation rate of Tunisia rose for 11 consecutive months, reaching 8.6%in August, the highest level in 30 years. Israel's annualized inflation rate rose to 5.2%in July this year, the highest since October 2008.

Recently, the Fed's continuous interest rate hike is the direct cause of the continuous depreciation and inflation of many Middle East countries. In addition, some countries their own economic structure, or the unstable political situation in the years, has led to weak economic growth, and is more likely to be affected by external factors.

Currency devaluation and high inflation have a serious impact on ordinary people's lives in the Middle East. On the occasion of the new school year, the expenditure of add stationery for children was insignificant, but now Turkish parents are deeply under pressure. The mother of a two child said: "The price of everything has doubled, so we only buy necessities."

During July this year, many families in Tunisia had to choose to "fight" with relatives and friends to buy sheep. The owner of a pet products store in Egypt said that there will be fewer and fewer inventory, because many products in the store are imported. As the pound depreciates, the high cost is unbearable.

The head of emerging market research in Oxford Economic Research Institute said that some emerging market countries are at the critical point of the economic crisis. "If the US dollar appreciates further, it will be the last straw that crushes the camel."

[Editor in charge: Liu Yang]

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