Thanks to the US dollar’s “exorbitant privilege” as the world’s dominant reserve currency, US borrowing is normally funded on extremely attractive terms – but this may be about to change. Photo: Reuters
Stephen Roach
Opinion

Opinion

The View by Stephen Roach

How the coronavirus may deliver a shock to the US dollar

  • US domestic saving, already depressed, is headed deep into negative territory. This is likely to lead to a record current-account deficit, and the US could see a 35 per cent dollar plunge over the next two to three years
Thanks to the US dollar’s “exorbitant privilege” as the world’s dominant reserve currency, US borrowing is normally funded on extremely attractive terms – but this may be about to change. Photo: Reuters
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