NEW YORK -- The appreciation of the US dollar has compounded the crunching problems of debt sustainability for dozens of low- and middle-income countries, prompting them to diversify their reserve currencies, Foreign Affairs reported in mid-October.

The report stated that the dollar "is everyone's problem, in the words of John Connally, former US Treasury Secretary."

The report indicated that much of the corporate debt in these countries, which is in the hands of foreign investors, is denominated in dollars.

These debts become more expensive to service and pay off when the dollar is strong.

He also said that "even when the external debt is denominated in the local currency, the depreciation of the exchange rate against the dollar can cause problems."

He added that US financial companies, which see themselves exposed to losses in those foreign investments, withdraw from emerging market assets, which imposes additional downward pressure on the value of foreign currencies in a vicious circle.