An exchange rate crisis is caused by

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An exchange rate crisis refers to a sudden and unexpected collapse in the value of a nation's currency due to factors such as political instability, high inflation, large trade deficits, low foreign reserves, or other economic imbalances. This often results in a rapid depreciation of the currency, leading to a loss of confidence among investors and speculators, and triggering a cycle of capital flight and currency devaluation. The IMF may provide financial assistance to the affected country, but the crisis can have severe economic and social consequences, such as inflation, recession, unemployment, and political instability.

An Exchange Rate Crisis Is Caused by