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This happens because the US is exporting inflation. That is, countries need to sell more of their local currency and use more USD to buy the same quantities of
by coliveira 4y ago
This happens because the US is exporting inflation. That is, countries need to sell more of their local currency and use more USD to buy the same quantities of dollar denominated products, resulting in the USD going up. This is one of the reasons why they will try to decouple from the USD.
In the past, countries had no other option than to continue using dollars. Nowadays there is a growing group of nations willing to trade in other currencies.
- adamc 4y agoMaybe in Euros. Otherwise, I'll believe it when I see it. China's handling of its economy has not been stellar and I don't know that folks will be in a hurry to use RMB. There's lots wrong with the dollar (or even the Euro), but... the alternatives aren't so great either.