Economies with booming natural resource sectors often see their exchange rate appreciation to the point where the competiveness of the manufacturing sector is significantly diminished.This phenomenon is known as

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The phenomenon described is known as the "Dutch disease," named after the Netherlands in the 1960s when the discovery of natural gas led to a significant appreciation of the exchange rate and a decline in the manufacturing sector's competitiveness. This term has since been used to describe similar situations in other countries with booming natural resource sectors.

Economies with Booming Natural Resource Sectors Often See Their Exchange