The International Monetary Fund (IMF) revealed that emerging market economies bore the brunt of the dollar's rise in 2022 to its highest level in two decades, and were hit by capital exits, rising import prices, and tightening financial conditions. New research in its annual report on the external sector showed that last year's dollar appreciation had a greater impact on emerging markets than on smaller advanced economies, partly because exchange rates in the latter group are more flexible. For every 10 percent rise in the dollar as a result of global financial market forces, the GDP of emerging market economies falls 1.9 percent after one year, and is expected to continue for two and a half years.
Source (Al-Arabiya.net Website, Edited)
