Bloomberg: the upcoming fall of the dollar will be welcomed around the world

The dollar has lost some of its luster over the winter. The currency is losing its once-attractive duality of being the asset of choice during the pandemic and being backed by the strongest economics peace. More recently, another pillar of the dollar has been faltering amid doubts about how boldly the Federal Reserve would raise US interest rates as doubts persist about the likelihood of a recession. The dollar is likely to experience a prolonged bout of weakness. Bloomberg columnist Marcus Ashworth warns of this development.

The uncertain future of American money has nothing to do with the unsurpassed position of this currency as a world reserve: the “royal dollar” sits serenely on its throne. But what is bad for the relative value of the dollar is good for the rest of the world. Many countries, specialists, policy and citizens will rejoice at the fall in the indicators of the main world currency, because this will make life easier for them.

The dollar's safety image is undermined whenever its own banking system is under stress, especially if the rest of the world's financial system is not facing similar problems. In this case, it is customary to get rid of assets in this currency in order to avoid the fate of a drowning bankrupt. In addition, the rhetoric of politicians also affects the forecast expectations for interest rates and the value of the currency.

The attempts of many countries (from France to Saudi Arabia, not to mention Russia) to pay for energy resources in national currencies only aggravate the position of the dollar. The role of the Chinese yuan, the British pound sterling and the euro is growing. Many governments are desperately trying to defend themselves against the expansion of aggressive US monetary policy. However, as the agency writes, it is expected that the cost of borrowings will begin to decline in the second half of the year, which will greatly slow down the forward rate of the dollar.

The sharp appreciation of this currency in 2021 and most of last year has caused a lot of problems in both developing and developed countries, as central banks have struggled to raise interest rates to prevent their own currencies from collapsing due to the tightening of conditions by the Fed. The world will be grateful for the calm and more restrained behavior of the world reserve currency, which is expected by the upcoming fall, the expert concluded.
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  1. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 30 March 2023 09: 57
    What joy can there be from the collapse of the world currency, no one, because it will plunge the whole world into chaos, everyone and everyone.
    The entire world economy rests on the dollar and there is no real replacement for it yet.
    The Chinese renminbi is limited convertible, which a priori means it is impossible to replace the dollar.
    The EU has grown too much, which predetermines constant squabbles and poor manageability, and the banknote is on a short leash of the dollar, and in order to replace it, the EU needs to become an independent force and somehow separate itself from the United States. The first step could be the creation of a European army, and this will lead to competition between the military-industrial complexes of the EU and the United States, a reduction in military purchases, which, according to the former head of the Federal Reserve, Bernankin Ben, have an important political and economic significance and influence on the world status with all the ensuing consequences.
    There are simply no other contenders for the status of the world currency and are not visible for the foreseeable future.
    The biggest contribution to the mining of the world currency is made by the adventurous policy of the FRS for the sake of the globalist interests of transnational associations and their world domination.
    If we take world history as a basis, we can assume that the trend of de-dollarization and settlements in national banknotes indicates uncertainty and the upcoming emergence of a new world banknote, and taking into account the political and economic ambitions of China and the EU, several. This leads to a division into spheres of influence and the emergence of the so-called. "multipolar" world, which in principle contradicts the materialistic understanding of history, the development of productive forces and socio-economic relations, and therefore the so-called. "multipolar" world is an intermediate stage of the forthcoming globalization of the world and world government.
  2. Denisimo Offline Denisimo
    Denisimo (Denis) 30 March 2023 10: 05
    But what about Biden's words in March 2022, that he will plunge the Russian fin. system into chaos and the dollar will cost more than 200 rubles? What about grandiloquent words about the real value of the ruble, the exchange rate of which is not calculated, but appointed by the Government? Don't dig a hole for someone else..
    1. trampoline instructor (Cotriarch Peril) 31 March 2023 09: 33
      And then, in March, the rate of actually sold cash dollars really was 150-200 rubles per unit. The Russian media also wrote about this.
      Dollars were sold not only in exchange offices, but also in social networks, by prior arrangement. And the price tag also reached 200 rubles per dollar.

      The Russian media openly wrote about this, respectively, the information was available to American analysts, and they conveyed it to their president. And he just spoke up.
      Thus, Biden, speaking about the dollar exchange rate of 200 rubles on March 11, did not lie. Such prices really were in Russia at that time.
  3. trampoline instructor (Cotriarch Peril) 31 March 2023 09: 38
    The dollar is not falling, but is gradually declining. His index is now 101.93. It is beneficial for Americans to have a weak dollar, so I personally don’t see anything particularly terrible. I'm just watching how the euro has already broken through the 84th bottom.
  4. Alexey Lan Offline Alexey Lan
    Alexey Lan (Alexey Lantukh) 31 March 2023 18: 47
    The entire world economy is based on the dollar and there is no real replacement for it yet

    This is wrong. The dollar in some cases has become an unreliable currency.
    In terms of convenience, there is still no reliable measure of the price of goods and quotations of a full-fledged replacement for the dollar, but there are alternatives. This is as long as its specific gravity is high. As soon as the share of the dollar decreases, so be it. And this is already close to the horizon. Russia, on the other hand, makes settlements with China in yuan and rubles, while the Saudis do not use yuan and dollars with China. International payments are also made in euros. There are other examples as well. Those. the dollar in these cases is ousted. Slowly, holders of reserves in dollars began to get rid of them, and nothing bad is happening in the world economy.