Evolution journalist
Good people
Evolution journalist
Good people
Involve
The Bank of International Settlements (BIS) issued a more clear warning in the years as the US dollar faces an unprecedented “historical test” amid global financial instability.
General Director of BIS AGUSTÃN CARSTENS Declare The global economy entered “A new era of increased uncertainty and the inability to predictAfter the transformations of the American dramatic policy that shook the markets around the world.
The dollar has decreased by 10 % since the beginning of 2025, which represents the largest decrease in the first half since the start of floating exchange rates in the early 1970s.
This extraordinary decrease occurred alongside the increasing revenues of government bonds, creating what Carstens described as “” “An unusual and disturbing mixThis has sparked speculation about the traditional situation of the dollar as a safe haven.
Politics chaos leads to the market uprising
Trade tensions and political turmoil mainly led to global economic stability.
The announcement of the American customs tariffs based on shock waves through international markets, while accompanying policies, including the independence of the central bank and discussions on the punishment of US securities, have strengthened unprecedented uncertainty.
The crisis reveals the deep structural weaknesses that have been developing for years.
This constantly poor growth of productivity, unusual financial positions with historically high debts, and the growing fingerprint of less organized non -banking financial institutions that constitute regular risks.
Financial conditions are now more transmitted through economies due to structural transformations in the global economic system.
The expansion of sovereign bond markets and the increasing role of non -banks, such as investment and hedge funds, led to a more strict dispute between financial markets around the world.
Increased protectionism and fragmentation of trade represents special concerns because it exacerbates decades decades’ decline in the growth of the economy and productivity.
The aging of the population, climate change, geopolitical tensions, and weaknesses in the supply chain make the global economy less flexible in shocks.
She left increased inflation after birth permanent scars on family expectations, which could make them less firm.
High public debt levels near the highest levels of peace in many countries increase the weakening of the financial system in high interest rates while reducing the ability of governments to respond to new shocks.
Place the safe haven for the dollar under an unprecedented attack
The dramatic decline of the US dollar raised a basic issue about America’s financial credibility on the global stage.
The simultaneous consumption of the dollar, along with the increasing revenues of government bonds, challenges historical patterns, as the demand for the safe term usually enhances the currency during periods of uncertainty.
Market dynamics reveal unusual pressure in the most important relationship in the world.
The fluctuation increased with the struggle of investors with policy advertisements, followed by modifications and repercussions, creating an atmosphere of permanent prediction.
Non -American investors with treasury bonds and other American assets significantly increased the hedge activities, which makes “” “Important contributionTo the dollar slice.
These defensive sites indicate the erosion of confidence in the assets offered in dollars, despite their traditional attractiveness in safe.
The repeated cycle of policy advertisements and subsequent amendments mainly changed the market’s vision of the stability of American policy.
Economic Adviser BIS Hyun Song Shen Recognized It is that there is no evidence for “Great rotationAway from American origins, the situation remains liquid.
Sovereign funds and central banks move slowly, making it very early to determine whether current trends represent temporary adjustments or structural transformations.
The effects of currency markets extend where global financial conditions become increasingly sensitive to US policy resolutions.
Stablecoin can save the dollar’s hegemony amid regime restructuring
The crisis revealed basic weaknesses in the global financial system, as Stablecoins appears as a potential threat and salvation for the sovereignty of the dollar.
Stablecoins was previously seen as a competitor to traditional currency systems, but regulatory clarity through an advanced genius law could turn Stablecoins into a dollar census.
Most Stablecoins are still tied to US dollars, which creates the possibility of the bachelors of the US dollar, as the adoption of digital payment is accelerated all over the world.
The Senate’s progress of the comprehensive Stablecoin legislation towards the final clip is an embarrassing turn, as the appropriate organization can direct the use of digital assets through the infrastructure provided by the dollar.
BIS calls for structural reforms, including the flexibility of the enhanced market, reduce commercial barriers, enhanced regulatory control, and ensuring banking and non -banking services activities facing a similar accumulation.
Central banks must maintain a focus on price stability with adaptation through flexible tools, as the induction uncertainty complicates monetary policy amid stagnation pressures.
The success of the organizational framework can provide unexpected support for the dollar during the historical stress test.
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2025-06-30 13:53:00
