Rising global interest rates have a significant impact on the economies of developing countries. When central banks in developed countries, such as the Federal Reserve in the United States, raise interest rates, the effects can be felt directly in developing countries. Higher interest rates in developed countries attract foreign investment, resulting in capital outflows from developing countries. As investors shift their investments to assets that offer higher returns, developing countries face challenges in maintaining the value of their exchanges. This often leads to currency depreciation, potentially increasing the cost of debt denominated in foreign currencies. Most developing countries owe their debts in foreign currency, so depreciation of their currencies can lead to spikes in debt and inflation, resulting in economic instability. In addition, increasing global interest rates also cause domestic borrowing costs to increase. Banks in developing countries will raise interest rates to attract deposits and maintain liquidity. Financing has become more expensive for both the private and public sectors. Companies that depend on credit for expansion may delay investment, while highly indebted governments are forced to divert funds from social programs to pay higher interest rates. In terms of inflation, rising interest rates in developed countries can reduce global demand for commodities, which are the main source of income for many developing countries. For example, when interest rates rise, the strength of the US economy tends to affect the prices of oil and other raw materials. This decline in commodity prices has an impact on the income of countries that depend on natural resource exports, hampering their economic growth. The increase in interest rates also affects the flow of foreign direct investment. Investors tend to be more careful in investing in emerging markets which are considered riskier when interest rates increase. This could slow the growth of manufacturing and infrastructure sectors that are heavily dependent on foreign investment. In addition, the capacity to finance development projects is reduced, slowing progress towards sustainable development goals. More vulnerable countries are those that are heavily indebted and have a shortage of foreign exchange reserves. Rising interest rates force these countries to reform their financial and fiscal policies, which are often unpopular among the public. Tax increases, reductions in social spending, and austerity programs can trigger widespread dissatisfaction and even social protests. However, not all developing countries responded negatively to rising global interest rates. Several countries have enforced strong monetary policies and have sufficient foreign exchange reserves to withstand the impact. On the other hand, countries that are able to increase economic productivity and competitiveness can emerge stronger after a period of uncertainty. Responding to this situation, developing countries must focus on economic diversification, strengthening macroeconomic policies, and developing domestic markets to overcome dependence on foreign investment. This will help them reduce the negative impact of global interest rate fluctuations and increase future economic resilience.