RE: Does The Dollar Rally Destroy Developing Markets?

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Exactly when imports are secured they dollars are used to purchase bonds so countries that export to the US can have dollar reserves

A lot of the worlds dollars are secured in credit and liquid dollars is what people and businesses need!



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Since 2014 many countries have been converting their bonds. The media (at least in the West) like to jump on the bandwagon that they are dumping. That isnt the case. The reality is they need USD and that is how they get it.

China is in that position because their economy is basically dollarized anyway since the Yuan floats only when they want it to.

Sadly, it doesnt seem like it is a situation that is going to get any better. What we do know is this will keep causing a slowdown in global growth.

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