Currency Crises

A currency crisis occurs when a country's currency rapidly loses value, often due to economic instability, unsustainable debt, or political turmoil. This can lead to a loss of investor confidence, prompting individuals and businesses to exchange their currency for more stable options. As demand for the currency falls, its value plummets, leading to inflation and higher prices for imported goods. Governments may struggle to maintain currency pegs or intervene in markets, creating further challenges. The aftermath can affect the entire economy, leading to recession, unemployment, and social unrest.