Strong dollar is weighing on trade – BIS’s Shin
Advanced-economy monetary policy may have made the problem worse, he says
The strength of the US dollar appears to be a factor in the weak recent performance of global trade and manufacturing, according to Hyun Song Shin.
The Bank for International Settlements’ head of research said in a speech on May 14 that as the global trade financing currency, the dollar’s strength creates tighter trade financing conditions. A study by the Committee on the Global Financial System found 80% of bank trade financing was in dollars.
The relationship is borne out in the data, as
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