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Discover Latest #Dollarization News, Articles and Videos with Contenting
Articles What is Dollarization? Dollarization is the process by which a country adopts the U.S. dollar as its primary or only official currency. It is also referred to as dollarisation or currency substitution. Dollarization is an extreme form of currency substitution, whereby a country completely abandons its own currency in favor of the U.S. dollar. Dollarization is a controversial issue, as it raises questions about the sovereignty of a nation and the need for a central bank. It has been adopted by some developing countries, but is more often used as a temporary measure to stabilize a country’s economy. Pros and Cons of Dollarization The primary benefit of dollarization is that it provides stability to a country’s economy. By using the U.S. dollar as its currency, a country’s exchange rate is fixed to that of the U.S. dollar, meaning that the value of the currency will not fluctuate due to market forces. This eliminates the need for a central bank to set interest rates and manage the currency, thus allowing the country to focus on other economic policies. The primary downside to dollarization is the loss of sovereignty. By adopting
Weekly Focus - War and Risk of Escalation Weigh on Market Sentiment - Action Forex
The war between Israel and Iran and the risk of further escalation weighed on markets this week. Equity markets largely traded in red and US treasury yields slid lower. That said, markets were by no means in full risk-off sentiment, with gold prices sliding gradually lower during the week and no noticeable outperformance of traditional FX safe havens. With oil prices up close to USD10 per barrel compared to levels before Israel's attack on Iran, US recession risk lower and US equity outperformance, the USD has seen several tailwinds. Even so, it struggles to find persistent support and we see growing evidence that the de-dollarization narrative is gaining traction.
‘Trillions And Trillions’—Bitcoin Braced For A ‘Big’ July As Trump And Fed Create Perfect Crypto Price Storm - ForexTV
Now, as a legendary billionaire has said he expects global “de-dollarization” to catapult the bitcoin price higher, traders are eyeing what Trump’s crypto czar David Sacks has said will be a “big” … Read Full Story
tariffs: Fed may stay dovish amid manageable tariff impact: Stephen Innes - The Economic Times
Markets anticipate a softened tariff regime, influencing inflation and the Federal Reserve's response. A manageable tariff rate of 10% to 14% is expected, potentially leading to a one-off inflationary impact. Stephen Innes favors gold as the top-performing asset, citing central bank buying driven by de-dollarization and strong Asian demand, anticipating significant gains in the coming years.
BRICS: Trade tensions, not BRICS, are the bigger threat to global stability: Geoff Dennis - The Economic Times
Geoff Dennis, an Independent EM Commentator, dismisses the notion of BRICS posing a currency threat to the US, despite China's desire for a stronger RMB. While some de-dollarization exists, Dennis believes Trump's perception of any overseas collaboration as anti-American is a key factor.