The rise of the US currency depletes their limited foreign exchange reserves and stunts growth by making their exports more expensive. The strengthening of the dollar over the past year due to continued interest rate hikes by the US Federal Reserve has put severe pressure on many emerging economies, which have seen their national currencies …
Tag: dollar
The De-dollarization of the World Economy
In 1971, the US government, faced with stagnant inflation and a major global financial crisis, announced the US withdrawal from the Bretton Woods system of agreements, which meant that, in technical terms, all currencies became coin-to-currency currencies. to be regulated in the financial markets. Of course, the changes brought about by the abandonment of the …
The Unchanged Interest Rates, The Dollar Price Slip and the Postponement of Tapering
The Fed, knowing the expectations of the markets, decided last Wednesday 28/7/2021 to maintain unchanged interest rates, while continuing at a steady pace its monetary policy through the purchase of government bonds and securitized mortgage bonds with the always existing monthly rate. The head of the Fed, Jerome Powell, accepted the fact that the American …
The Threat of SARS-ConV-2 and some immediate Economic Consequences from it
On the morning of Friday, February 28, 2020, there were 2848 deaths and 83386 cases of SARS-CoV-2 (coronavirus) in 44 countries around the globe (Source: WHO, www.who.int ) due to the disease it causes called COVID-19. These numbers are increasing at an impressive speed, while the vaccine that will protect the earth’s population from the …