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Corrupt Inflation On The Cost Of Living Due To Volatile Forex Rate

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Inflation is one problem a country can have, only if its happening to an organised country that it can be controlled, where things are in order, but not in a country where things are not in order. I have talked about how inflation is the only constant thing in my country, to the extent that no one questions it any more, everybody just moves along with it. The market sellers, although it is understandable that they need to increase the price of goods and services, because they have to restock, but one thing about inflation is that when its up, its hard to come back. My country is known for constantly importing more than they export meaning that they have to use the dollar and this also means that they have to constantly sell their local currency for the dollar. This is constantly driving demand for the dollar and depreciating the value for the value of the local currency.
source This has affected the cost of living in the country because most people in the country earn the local currency and never get a salary raise or increase when inflation increases, thereby driving the cost of living constantly high. This is sad because recently, inflation has been off the roof lately, and it was blamed on the devaluation of the local currency to dollar. Which was understandable because when these sellers want to restock they have to pay higher because the value of the dollar to the local currency is higher now. But this comes with a lot of corruption, because, in as much as the price of things are high because of the increased in the dollar value to the local currency, these sellers wish they would never stop selling at the high price to make more profit.

Recently, the value of dollar to the local currency is getting lower, this means that the local currency is gaining some value, but guess what, the cost of living is still increasing. Why? These sellers don’t want to reduce the price of their goods because they have restocked when the prices were high, this means that if they reduced the price of goods because the value of dollar to the local currency is low, they will be at lost, this is understandable. But in my country that is just an excuse to leave the price of things that high, it never goes down again, even after they have successfully sold the goods they restocked when dollar values were high. This keeps the cost of living constantly high and sad. All because, the rate of volatile forex rate is really high. If only the government can learn to control inflation ad stop it from being extremely volatile. This has made a lot of people store their wealth in dollar because its seems like the local currency is close to being worthless.

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