In yet another example of a currency crash, Zambia’s currency has dropped almost 50% in 2015. China’s slowdown has global repercussions, particularly in countries that were supplying China with the necessary commodities for growth. In Zambia’s case is was copper. Countries with diverse economies aren’t hit as hard, but many countries rely on exports dominated by a single commodity, frequently oil, sometimes a metal like copper. The China slowdown is down to numbers that are considered high everywhere else, ~6%; but there are doubts about the validity of the China’s reported finances. One piece of evidence may be such commodity pullbacks. Even if China’s economic reporting is accurate, even a slowdown is having amplified effects in other countries. If China’s economic reporting is optimistic, and that the economy is actually worse, then the world economy may be entering a major upset.
(Click on the graph for the link.)
“Zambia’s Currency Is Falling So Fast Its President Asked The Country To Pray For It” – Quartz
Pretending Not To Panic 