首页 社会内容详情
Insight - Is the US dollar’s primacy at risk?

Insight - Is the US dollar’s primacy at risk?

分类:社会

网址:

SEO查询: 爱站网 站长工具

点击直达

足球免费推荐www.ad168.vip)是国内最权威的足球赛事报道、预测平台。免费提供赛事直播,免费足球贴士,免费足球推介,免费专家贴士,免费足球推荐,最专业的足球心水网。

The US dollar’s share of the world’s foreign exchange reserves has been falling gradually, and the structural changes in world economic and financial order as well the evolution of financial technology have weakened the dollar’s market share in global cross-borders payment systems.

FOR decades, this question has been resurfacing: Will the US dollar continue to be the world’s dominant reserve currency and continue to dominate the international monetary system?

The US dollar’s share of the world’s foreign exchange reserves has been falling gradually, and the structural changes in world economic and financial order as well the evolution of financial technology have weakened the dollar’s market share in global cross-borders payment systems.

The US Federal Reserve’s (Fed) resolve to get soaring inflation (9.1% in June 2022) back down to more acceptable level (Fed’s inflation target of 2%) through more interest rate hikes has helped to strengthen the dollar.

The broad US Dollar index, which had strengthened by 3.5% in 2021, continued to increase by 7.1% as of mid-July 2022.

Higher Treasury yields have made the US dollar more attractive to long-term investors, especially central banks and sovereign funds as they take into account the inflation’s return impact on their strategic allocation of assets and portfolio investment.

As of Aug 1 this year, at the levels (UST two-year at 2.8964%, five-year at 2.6911% and 10-year at 2.6590%), the US bond yields are becoming more attractive compared other comparable advanced and emerging bond markets.

,

欧博电脑版下载www.aLLbet8.vip)是欧博集团的官方网站。欧博官网开放Allbet注册、Allbe代理、Allbet电脑客户端、Allbet手机版下载等业务。

,

This will increase if US inflation starts to slow, which is likely to happen by 2023.

Enhancing the greenback’s appeal is the interest rate differential, which became a natural tail wind for the dollar. With the Fed’s hawkish bias to tackle inflation head on, and reinforced by quantitative tightening resulted in tighter financial conditions, this will prove a challenge for most assets classes and should help to buoy demand for the US dollar as a safe haven amid economic uncertainty and interest rate differential gains.

The US dollar’s dominant status as world reserve currency and its high liquidity has always been the investors’ undisputed safe haven currency choice.

In times of economic turmoil, investors’ flight to quality shed riskier assets and acquire less volatile ones.

This happened in 2008-2009 global financial crisis when the global demand for the US government bonds was held steady.

Will the US dollar lose its dominance status in the global international system? Over the years, structural changes in the world economic and financial order, geopolitical power play as well as the emergence of new technology and digital payment have undermined the US dollar’s role.

The US dollar’s share of global reserve currency has been shrinking to 58.9% in the first quarter of this year (1Q22) from 62.2% in 2010; 71.1% in 2000 and 65.1% in 1997. Have there been any significant shift into other reserve currencies?

  • usdt接口开发(www.trc20.vip) @回复Ta

    2022-09-21 00:08:16 

    韩国京畿大学教授刘子阳对习近平主席有关“疫情再次证实,我们生涯在一个地球村,各国休戚相关、运气与共”的叙述印象深刻。他以为,只有增强人类运气配合体意识,才气在全球赢得抗疫胜利。疫情时代亚洲区域内泛起了经济负增进,区域周全经济同伴关系协定(RCEP)将为亚太区域未来经济生长起到主要作用。 加油,我们很喜欢

发布评论