A Russian economist who works for an investment institution said developing countries usually face currency crises, adding that the situation has changed in recent years.
Andrey Kochetkov, an analyst at Otkritie Investits, added that under current conditions, the prerequisites for such shocks are intensifying in developed countries such as the UK, Japan and the United States.
The expert emphasized that the currency crisis (when there is a sharp depreciation of the national currency and a large number of fluctuations) occurring in Turkey, Sri Lanka and Argentina is not surprising, but the UK is also facing similar difficulties. He said that after the previous British leadership announced tax cuts and increased spending, the pound sterling collapsed in earnest, without any real prerequisites.
He added that the deterioration in external conditions is also becoming catastrophic for Japan, which has a very large public debt compared to its gross domestic product (230%), and its national currency is currently experiencing a sharp fall.
He emphasized that threats to the US dollar are also growing, saying that the inevitable rise in US government debt could lead to its depreciation due to a lack of funds to buy US government bonds. Thus, the expert concludes, regulated institutions in the three countries mentioned above may find themselves in a difficult position in the near future.