Three problems are evident in the process of financial globalization.

The first is that since the degree of currency convertibility power is low for all the developing countries, all their foreign loans have to be paid in foreign currency. When any country gets loans from foreign countries they have to return on same currency. But the problem is that according to the rate of foreign currency they get very low amount when they convert. In that case only export business can overcome the problem. But if the foreign loans are not used for development of export conveniences then the loan payment no longer depends upon the scheme performance. The second problem relates to the sufficient condition for integration, which is the countrys ability to attract such financial capital. When the foreign loans are not used for the development of export facilities, the loan will be repayment no longer depends upon the project performance. A third problem is directly related to the impact of financial globalization on Macroeconomic volatility. If a country becomes dependent on foreign capital, it can create financing difficulties and economic recession