The South African Finance Ministry's Debt Growth

When South Africa borrows say 500 million dollars worth of money from these international lenders, they borrow in foreign currency. So when it has the dollars credited, they will be credited essentially to its New York account with JP Morgan. And so they then need to sell the dollars and buy South African Rand. What happens now on the bank balance sheet of the South African bank is it will create the equivalent of 500 million dollars from new. It's another debt growth. Because it could have just created the money directly domestically. But this is the big secret that developing countries are not being told. That's why the knowledge of bank credit creation is being suppressed so much.