The US central bank’s aggressive interest rate increases, coming amid the pandemic and Ukraine war, have amplified challenges for emerging markets and started a reverse currency war. With these markets looking at drastic measures to stay afloat, it’s time for urgent action from international lenders and central banks.
Beijing’s insistence on zero Covid could see Europe facing heavy losses as raw material shortages and supply chain disruptions weigh on exports. The rising cost of trade comes when Europe is already dealing with the Ukraine war, making its road to recovery even more uncertain.