The Dominance Of US Dollar During COVID19 Pandemic
US Dollar’s dominance on the World’s economy has various effects on global financial stability.
The Dominance Of US Dollar During COVID19 Pandemic :
The US Dollar has achieved its dominance in the international market for decades. Till today dollar remains the topmost reserve currency The currency plays a big role in international trade and global financial stability. US Dollar’s dominance on the World’s economy has various effects on global financial stability. The reliance of the global economy on the US dollar has severe implications on the economy of developing countries.
During the COVID19 times, the US Dollar situation about its funding become tense in march. But the effects of Funding on the US Dollar are short-lived. The US Dollar strikes again the Global economy. It shows the dominance of the US dollar in the developing economies of the World and how it is gaining prominence day by day.
Doubtless, the World is facing serious economic situations. The US has also seen the resurgence of the COVID19 virus and it also affected the economic outlook.
Analysis of The US Dollar :
1. First Thing is to see the bleaker prospects of the US economy. According to the latest data released by the international monetary Fund, the US economy is going to be contracted. The contraction of the US economy also leads to serious implications on the economic future of the Dollar. It is likely interesting to see the fluctuating dollar rates in the upcoming days.
2. The Second thing is the US Debt dilemmas. As we know that the US is highly indebted as the country believes in massive spending. Despite the COVID pandemic US economy has spent most for the development purposes of the country. But one thing is important to consider is that higher debt levels can increase the competitiveness of the US economy.
3. The Third prospect is the geopolitics of the country US Dollar prices also depend on the geopolitical strategies of the administration.US is blaming china responsible for the dreaded pandemic. The US administration is saying that it was china’s strategy to decrease the value of the Dollar in the international market.
4. The Internationalization of other currencies like the Yuan can be a hazard for the US dollar as China’s currency is also making its dominance in the international market. But there is indeed a long road to go for the currencies of Other countries to outperform Dollar.
Undoubtedly, Dollar is the king of the world economy. The Currency is gaining attraction from international investors due to its competitiveness & dominance in the Economy. The above-mentioned detailed analysis of the US dollar guides the policymakers in strategizing the future policies regarding the US dollar.
Edited By Team CLIQTAX
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