iPhone | iPad
Android
Huawei
Earlier this week, Mevlut Cavusoglu became the first Turkish foreign minister to visit Egypt in 10 years
KT APPDOWNLOAD
Why UAE residents don't have to worry about economic crises
The pandemic taught us that the world tends to move quickly when new crises take centre-stage
Let me start with one of my favourite quotes by Francis Bacon: “Read not to contradict and confute, nor to believe and take for granted, nor to find talk and discourse, but to weigh and consider.”
The pandemic taught us that the world tends to move quickly when new crises take centre-stage. The matter I want to highlight today is the United States’ Federal Bank’s strategies to counter inflation — and the effects they are having on developing and under-developed nations. Although some experts are concerned that a US interest rate hike could lead to a worldwide economic crisis, it’s important to note that economic forecasts are never specific, and many different factors can influence the global economy.
Away from all that, consider yourself lucky if you live in the UAE — because you don’t need to worry about economic crises. For long, the UAE has understood that no country is free of financial challenges, and our government has taken several measures to decrease the impact of the US Federal Reserve’s interest rate hikes on our economy.
These measures include maintaining the currency peg to provide stability and predictability for businesses and investors in the country, diversifying the economy, and insulating the country’s economy from the negative impacts of fluctuations. In addition, the UAE government has worked to manage its debt levels and maintain a strong credit rating, which can help to ensure that the country can access affordable borrowing if needed in the face of changes in global interest rates. Also, the UAE government has invested heavily in infrastructure projects, which can help to attract international businesses and make the country more resilient in the face of economic shocks.
Subsequently, by adding gold, I have taken my share of measures to diversify my investment portfolio. My research led to an inverse correlation between the value of precious metals like gold and the importance of paper currency, particularly during inflation. The value of precious metals tends to hold up well during inflationary periods, as their supply is relatively fixed and cannot be easily inflated by central banks. Over the long term, the value of gold and other precious metals has generally outpaced inflation, providing a hedge against inflationary pressures that can erode the value of traditional paper assets.
That said, it’s important to note that investing in gold also carries risks and uncertainties. Therefore individuals should research and consult a financial advisor before investing in precious metals. To sum it up, I will conclude with a quote by American personal time management author Alan Lakein: “Planning is bringing the future to the present so that you can do something about it now.”
ALSO READ:
More news from Opinion
Generally speaking, developed countries tend to have lower fertility rates and ageing populations
The current wave of austerity imperils the physical and mental health of the world’s most vulnerable workers. Studies have shown that the IMF’s structural-adjustment programmes have exacerbated health inequities in the Global South, where the majority of informal workers live
This is a Promethean moment we’ve entered — one of those moments in history when certain new tools, ways of thinking or energy sources are introduced that are such a departure and advance on what existed before that you can’t just change one thing, you have to change everything
The idea of it can distract us from doing what we need to do to make this world better; this timeline is only one we have access to, and it’s got to be enough
Some nations, such as US, Russia, China, India, have not signed on to ICC, citing concerns about court’s jurisdiction, potential impact on national sovereignty
When we think about children and screens, let’s also consider the relationship between adults and their TVs and smartphones. Watch cable news (where grandparents get their news), and you’ll see a discourse dominated by fear and anger
As countries across the world attempt to slow global warming, the switch to electric vehicles is particularly significant. But that requires wrenching change that is a death knell for hundreds of companies that make components for conventional engines. They will be obsolete in an EV world