Trump was going to bring down the dollar

10 August 2018, 21:58 | Economy
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In war, as they say, all means are good, even if it is trading, the American leader can quite solve and go to extreme measures. It is possible that Donald Trump will deliberately weaken the national currency for the benefit of the US economy, analysts of the investment bank JPMorgan Chase & Co. "Although this is not our basic scenario, we can not rule out such a turn toward currency interventions, especially given that the Trump administration periodically hints that it is interested in a weaker dollar rate," explained chief economist Michael Feroli to Bloomberg. Mr. President, admitted the expert, can learn from the experience of China, which is seen in manipulating the yuan. Using the fall of the national currency, Celestial provides its goods with an advantage in the international market. Not without reason, Trump recently bombarded his Twitter angry messages, where he accuses Europe of China in currency fraud, while an increase in the rates of the US Federal Reserve System (FRS) only harms the economy of the state. To the artificial exchange rate, the States resorted 18 years ago, when the G-7 agreed to help out the euro, which at that time was rolling down. And Americans used resorting to the repayment of dollars relatively recently, in 2011. Then they supported the Japanese yen, the price of which was adversely affected by natural disasters. And yet the analyst doubts the possibility of the development of events in this way.



The only thing Trump can do is put the FRS in certain frames, but she has all the tools to cancel the president's restrictions. Still, Feroli did not discount such risks. It is worth noting that the head of the White House has repeatedly criticized the trade relations of many countries and built for their complications all kinds of obstacles. However, most of all went to China, which responded to the United States with reciprocity. Countries exchanged trade restrictions, losses from which exceeded $ 100 billion.




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