The Market Ticker
Rss Icon RSS available
You are not signed on; if you are a visitor please register for a free account!
The Market Ticker Single Post Display (Show in context)
User: Not logged on
Top Login FAQ Register Clear Cookie
User Info Aooooooga! Aooooooga!; entered at 2018-10-11 12:26:24
Posts: 154622
Registered: 2007-06-26
The issue that is quickly arising is that when you run an export economy into the US someone has to exchange dollars (what the US pays in) to your currency. That would be a bank in your nation, mostly. Said bank has to hedge off its currency risk since a wrong-way move in FX can bankrupt you almost instantly due to the amount of leverage involved.

As time goes on that risk book gets bigger and bigger....and eventually someone notices!
2018-10-11 12:26:24