Rising Dollar Value would Reflect Negative Impact Internationally: IMF

The International Monetary Fund (IMF) issued a warning that a massive increase in the Price of U.S dollar would reflect a negative impact on the countries that are dealing in U.S dollar currency and dealing with the United States. It would also create negative scenario on the economies of these countries. The IMF further said in its annual report that downfall in the price of crude of oil would affect and can cause a rise in the price of U.S dollars in the international currency market. The countries that are dealing in U.S dollars should prepare themselves to manage the expected negative effects after a significant rise in the value of U.S dollar.

This report also said that most developed economies will not be affected by the rise of the U.S dollar interest rates and involved expected risks. Most of the economists believe that this could be happened in the month of September 2015. The U.S dollar would go high against the Euro currency although the Euro currency has increased its interest rates. It is also expected that purchased assets in the zone of Euro currency would pressurize downward to the U.S Treasury Bonds. The IMF programs report also indicated that expected effects of the Euro currency against the U.S dollar of the United States would be too high. This report also indicated the existing problems in some countries such as Malaysia, Turkey, Poland, Thailand and Chile.

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