How Currency Collapse Begins

Businessman Hosni Bey explained the reasons behind currency collapses, clarifying that the start of a financial crisis for any currency is linked to excessive financing of the monetary deficit resulting from public spending that exceeds revenues. He pointed out that an increase in government expenditure, whether declared or hidden, leads to a budget deficit financed through money printing or borrowing, which raises inflation and weakens the currency's value. He emphasized that currency stability requires adjusting the exchange rate to reflect the true balance between supply and demand, along with controlling public spending and achieving financial balance, because neglecting these measures can lead to "stagflation," a combination of recession and rising prices. He concluded that the solution lies in strengthening the productive economy and implementing sustainable financial policies.

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