Attention please! Foreign reserves plummet, governments face bankruptcy, these countries are at risk!

With the advent of the era of high inflation and high prices, unemployment in various countries has risen, and people's lives have been difficult. The economies of many countries have been affected to varying degrees, and many companies may even face bankruptcy.



01 Pakistan faces bankruptcy
In recent days, Pakistan is seeking $6 billion in aid in the International Monetary Fund's rescue package to deal with falling foreign exchange reserves, a widening current account deficit, rising inflation and a plummeting currency.
At present, Pakistan's foreign exchange reserves have plummeted to 10.3 billion US dollars, only enough to pay for imports in less than two months, and the country will face an imminent crisis of international default and bankruptcy.
It is understood that Pakistan's Ministry of Finance has dispatched a finance team to Doha for consultations with the IMF.
At the same time, the country's foreign exchange reserves have fallen sharply, food inflation has spiraled, and the Pakistani rupee is in a state of collapse, with a sharp 21.72% drop in the current financial year.
Farrukh Saleem, a Pakistani political scientist, economist and financial analyst based in Islamabad, said: "The rupee faces challenges due to reduced dollar inflows and lack of support from friendly countries such as China, Saudi Arabia and the UAE. The pressure is mounting.

The delay in the recovery of the $6 billion bailout fund from the International Monetary Fund has also led to a sharp drop in the country's foreign exchange reserves. "

02 Sri Lanka is in serious economic crisis

Affected by factors such as the new crown epidemic and high fuel prices, Sri Lanka is currently experiencing its worst economic crisis since independence in 1948.

According to CGTN Weibo on May 19, the grace period of Sri Lanka`s $12.6 billion foreign debt expired on the 18th, which means that Sri Lanka has defaulted on its sovereign debt for the first time since independence from the United Kingdom in 1948.
Due to the severe economic crisis, Sri Lanka is experiencing severe shortages of fuel, food and medicine, with power outages for hours a day and queues for gasoline and diesel. This has had an extremely serious impact on the lives of the local people. Many factories and enterprises cannot operate at all, and the country's economy has also suffered huge losses.

03 The Lebanese government goes bankrupt and the economic crisis continues
Lebanese Deputy Prime Minister Saad Shami announced on April 4 that the Lebanese central bank and government have been in bankruptcy.
At the beginning of 2022, Lebanon's economic situation improved for a time, but because the country's economy is very dependent on imports, since the outbreak of the Russian-Ukrainian conflict, Lebanon's transportation lines for purchasing various materials in the past cannot continue to pass through the Black Sea. , Lebanon's domestic prices have risen sharply.
In February this year, the country's annual inflation rate soared to 215%.


04 Myanmar strengthens foreign exchange control
According to the Myanmar Golden Phoenix Chinese News, the Central Bank of Myanmar issued Circular Order No. 12 of 2022 on April 3 in accordance with Article 49(b) of the Foreign Exchange Control Law.
According to the provisions of Articles 11, 12 and 13 of the Foreign Exchange Management Law, the foreign exchange income obtained by local people from abroad is remitted to Myanmar, and a foreign exchange account is opened in a bank that has obtained a foreign exchange business license (AD Bank), and the foreign exchange arrives. The account must be exchanged for kyat within one working day.

05 Mongolia's foreign exchange reserves are in short supply, and it has entered a state of saving
Recently, Mongolia's foreign exchange reserves have been in short supply, and the value of tugrik has continued to depreciate. Various commercial banks in the country have successively suspended the cash withdrawal business for customers in major international currencies such as US dollars, euros and RMB, and only allow customers to handle small foreign exchange transfers. .
Local public opinion believes that the decrease in Mongolia's export revenue has led to a shortage of cash in the country's foreign exchange market recently, coupled with the surge in foreign exchange demand from enterprises and individuals, which are the main reasons why commercial banks in Mongolia have successively adopted measures to suspend foreign currency cash withdrawals. reason.
The Mongolian authorities announced on April 10 that they planned to enter a state of saving in an all-round way, and are currently stepping up the formulation or implementation of corresponding countermeasures.

As the epidemic and conflicts continue, it is expected that more countries with high debts and heavily dependent on imports of food and energy will fall into economic crisis. Please pay more attention to foreign trade friends before shipping.

Source:https://www.sofreight.com/