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The answer to that is far more complex than you realize. Tariffs generally force export-driven countries to devalue their currencies.
by chrisco255 2y ago
The answer to that is far more complex than you realize. Tariffs generally force export-driven countries to devalue their currencies.
- croes 2y agoThat’s not how it works. Exhibit 1: The US Dollar devalues against the Euro. Some claim that is Trump‘s plan to make easier to pay the US debt.
- chrisco255 2y agoThis is about the yuan not the euro. Devaluation doesn't make it easier to pay debt. It helps foreign countries to pay down dollar denominated debt more easily. Meanwhile, the DXY is structurally way higher than average right now. The USD remains very strong compared to historical exchange rates despite its recent drop.