Economy Discovery

C urrent tensions or chronic shortages of foreign currency in some countries due to disruption of global supply chains caused by the Corona Pandemic are no secret. These tensions are easily seen from continuous depreciation of the currency (or exchange rate), the chronic shortage of foreign exchange, difficulties in servicing of foreign debt and investments, continuous decline in the foreign reserve and control of imports and foreign currency flows.  If these tensions are not resolved early, currency crises are only a matter of time. Since the 1990s, currency crises have hit several countries from time to time. Asian Currency Crisis 1997/98 has been a major one. At present, there are several countries such as Turkey and Lebanon struggling on the verge of crisis. Therefore, the present economic policy routine of many countries has been to control currency tensions in order to prevent currency crises. Currency tensions and currency crises are side effects of many countries failing to...