Waarom de sterke dollar een nieuwe wereldwijde crisis kan veroorzaken

Foto Reuters

De Amerikaanse dollar is sterker dan de afgelopen jaren. Goed nieuws? Niet echt. Het is juist een bedreiging voor de wereldeconomie.

The dollar is strong, stronger indeed than it has been for years. Fears that the world’s leading currency could implode are now over. Good news, right? Not quite. Paradoxically, it is precisely this overly strong dollar that could threaten the world financial system. A growing number of experts worry that a severe debt crisis in the emerging economies may be brewing.

If the value of the dollar continues to rise, it could lead to a wave of bankruptcies in Russia, Brazil and other emerging economies, which would have a serious impact on Germany and other countries that rely on exports.

Where and why did this potential threat arise? Countries, corporate entities and private households have, globally, become indebted to the tune of $10 trillion. A growing share of the debt has been incurred within emerging markets.

This debt could also become an existential risk. Most of these liabilities are not in native currencies like the Brazilian real or Russian ruble, but in dollars. In times of relatively stable exchange rates and a strong world economy with robust commodities quotations, this would not be such a serious problem: Dollar revenues on the world markets make it possible for dynamic economies to meet the cost of interest and repayment.

Read the full article: Why The Strong Dollar Could Trigger A Worldwide Economic Implosion
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