By James McKee
Investors world wide have greeted the problems in the Middle East with continued anxiety as the wave of revolution spread from Tunisia to Egypt and now elsewhere. The severe loss of life and property that has occurred in Egypt already has stirred a wave of controversy in the Western world. Western currencies could end up taking a tumble in the near future if these problems begin to affect oil production. The USD and all other major currencies are inherently dependent on the consistent availability of oil, without this most precious of commodities the world cannot function.
Besides the obvious consequences in the energy market destabilization between China and Europe could cause serious consequences with regard to trade and ease of communication. China has been expressing a large amount of interest in both Europe and Africa as of late investing in their economic stability and infrastructure. Instability in the Middle East could hinder these efforts causing harm to both China and Europe; the whole world truly is invested in a solution. Although the problems of economic hardship and inequality have gone ignored for decades citizens of countries such as Egypt have said “enough”…and the consequences are all too real.
Waiting until the whole world was more or less at an impasse financially has resulted in the very least amount of aid going to the Middle East by way of the west aside from political posturing. The United States has a vested interest in the stability of countries such as Egypt since without a presence in this area of the world production and manufacturing would be undermined and as a result the USD would suffer. Those on the Forex currency exchange should take care to mind the status of uprisings in at-risk countries in the Middle East. These countries have been powder kegs for years now and the fuse has been lit.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
