Countries have undergone several major changes that have made their economies much less susceptible to a strong dollar than they were in the late 1990s. But uncertainty looms
A currency exchange in Bangkok, Thailand, Oct. 3, 2022. Thailand’s central bank has spent more than 10 percent of its reserves to prop up its currency this year, according to estimates from Nomura Holdings. (Lauren DeCicca/The New York Times)
SEOUL, South Korea — Tigun Wibisana and Sandra Kok, who own the SiTigun cafe on Penang Island in Malaysia, are facing an excruciating decision that could make or break their business of 14 years: Can they increase prices to cover rising expenses without driving customers into the arms of their bigger rivals?
The cost of the coffee beans that the married couple buy is spiraling because they are traded globally in U.S. dollars, and the Malaysian ringgit has fallen to a 24-year low. Compound that with an inflationary spike in prices for butter and flour, essential ingredients for its pastries, and the shop’s profits have plunged more than 25% this year.
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