Interview: Expert says U.S. interest rate hikes causing ripple effects in developing countries
ABUJA, Nov. 10 (Xinhua) -- The successive U.S. rate hikes have sent shockwaves into developing countries, especially those in Africa, a scholar has said.
The U.S. policy measure will have a cataclysmic effect for many developing countries around the world, as "this measure, for sure, will not put smiles on (those facing) already difficult challenges," said Charles Onunaiju, an international affairs analyst based in Abuja, told Xinhua in a recent interview.
In its latest rate hike, the U.S. Federal Reserve raised the interest rate by three-quarters of a percentage point, and indicated further hikes in coming months as the United States seeks to rein in inflation.
The effects of such hikes on the economy of developing countries will become more apparent by the day, said Onunaiju, who has authored several books on international relations.
"When you are a major power, you are no longer thinking in terms of your people alone. You must assume major power responsibility," said the expert, urging U.S. authorities to consider the ripple effects of the country's policies on developing nations.
For Nigeria, the most populous African country, Onunaiju said the harsh effects of the U.S. policy are apparent. Like many developing countries, Nigeria uses the U.S. dollar as a major international currency and thus have to face a raft of challenges including the depreciation of its own currency and a slowdown of international investment.
Given the U.S. dollar hegemony, he noted the denominated dollar debt of developing countries would continue to balloon and essentially lead to economic slowdown.
"We will have issues of countries stripping down. And these are some of the consequences that will follow from this kind of measure," said Onunaiju. ■
Related articles
An Italian governor accused in a corruption probe has been placed under house arrest
ROME (AP) — The governor of the Italian region surrounding the port city of Genoa was placed under h2024-05-08UK PM pledges to halve inflation, boost economy
People are seen with shopping bags on a street during Boxing Day sales in London, Britain, on Dec. 22024-05-08Eurozone inflation slows to 8.5 pct in January: Eurostat
People shop at a store with discount signs in Berlin, Germany, on Feb. 1, 2023. Annual inflation in2024-05-08IAEA chief calls for "maximum restraint" over Zaporizhzhia attacks
Photo taken on April 11, 2024 shows a special meeting of the IAEA Board of Governors in Vienna, Aust2024-05-08Michelle Yeoh shines in VERY quirky tin foil
Michelle Yeoh electrified the 2024 Met Gala red carpet on Monday as she arrived in a tin foil-inspir2024-05-08270 killed as deadly military conflict in Sudan rages into 4th day
This photo taken on April 15, 2023 shows smoke rising in Khartoum, capital of Sudan. (Photo by Moham2024-05-08
atest comment