South Africans may be concerned about a weakened rand, now at its 3-months low, as oil prices surge.
This has sparked more fears of a hike in inflation.
The war is affecting currencies, even the Japanese Yen (JPY), is being closely monitored. Ryozo Himino, Deputy Governor of the Bank of Japan (BoJ) said movements of the currency are monitored due to their potential impact on inflation, owing to exchange-rate fluctuations.
Global tensions are expected to send prices up, including oil, furniture, medical supplies and food.
Jane Li of the Zhejiang Lanhine Medical Products, in China, wrote “the impact falls most heavily on employees, who drive everyday consumption. They are the ones buying groceries, commuting to work, and paying for daily essentials. As fuel costs rise, a larger share of their income is absorbed by energy and transport, leaving less for everything else.”
More days at war, could disrupt supply chain systems, such as the ports and significant hubs.
Analysts say markets often fall around 5–7% in the short term but could go up to between 8–9%, in a year.
Joseph Majkut, Kevin Book, Adi Imsirovic, Sarah Emerson, Raad Alkadiri, Leslie Guzman and Ben Cahill, told a publication (CSIS) that the United States’ “Epic Fury” is costing nearly $900 million per day.
Picture: Research Economies