| Foreign reserve will definitely run out in long term?

Foreign reserve will definitely run out in long term?

binocular222 asked:


Let’s talk about foreign currency inflow-outflow at developing countries:
FDI,FPI: When foreign investor invest in a country, they expect to earn more than what they paid which means in long term, when they withdraw principal+profit => foreign currency OUTFLOW is greater INFLOW
Loan (commercial loan, ODA, IMF, WB…): In long term debtor has to pay principal+interest => OUTFLOW is greater INFLOW
Net export-import: Most developing countries have deficit trade balance => OUTFLOW is greater INFLOW

So, in long term OUTFLOW is greater INFLOW and those nations will face a currency crisis? Is the only cure is export?

In fact many developing countries are experiencing a huge FDI-FPI inflow which leads to: “abundant F.currency at present => exchange rate rises => reduce export” => this will worsen that crisis?

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