The Five Oil Exporters Most Affected by Currency Devaluation

The Five Oil Exporters Most Affected by Currency Devaluation

In most cases the scenario is similar: over the past decade, oil exporting countries used excessive revenues from oil to expand public services, or simply pursue populist policy in order to buy political stability. Once oil prices started to fall, the budgets did not shrink accordingly, which created a wide gap between the oil revenues and swelling fiscal demands.

In order to stem the rapid outflow of foreign reserves, the governments were forced to devalue their national currencies. An unwanted consequence is almost always the rise in inflation and household prices, along with a decline in living standards and stalled economic growth.

Here are the five most affected countries by this devaluation trend.


 More http://bit.ly/1Ktz8mM