While some economists consider the US dollar to be the key reason for the global economic downturn, President Joe Biden is protecting the national currency. He refused to admit the negative impact of the US dollar on the global economy. The US president believes that a strong dollar cannot pose problems.
Reflecting on the difficult economic situation in the world, Joe Biden stood up for the US dollar that is blamed for many global troubles. “So, the problem is the lack of economic growth and sound policy in other countries, not so much ours,” the US leader said, adding that the local “economy is strong as hell.” It is obvious that a strong dollar has a great influence on the global economic processes as it is the main currency in the world. However, there is no reason to blame it for all the difficulties. The currency has been attracting investors as the most reliable asset for a long time already. Since the greenback is the dominant currency, its considerable appreciation cannot remain unnoticed. “The strength of the dollar is certainly putting a lot of strain on a number of countries,” Pierre‑Olivier Gourinchas, Director of Research of the IMF, pinpointed. “One, it is making the price of imported goods, which often are invoiced in dollars, higher. So that is increasing inflation pressures in other countries,” Pierre‑Olivier Gourinchas explained. “And then it is also tightening financial conditions. A lot of corporates or governments have dollar debt, and that becomes more expensive to service as the dollar appreciates,” he added.
