A prominent event that may affect the price of the dollar.. An expert reveals what might happen

2023-06-18 21:10:35

The recent Chinese-American rapprochement represented by US Secretary of State Anthony Blinken’s visit to Beijing today, Sunday, left a positive impression on the financial and economic situation in the world. On the one hand, some analysts believe that the dialogue between Washington and Beijing may establish a new stage of stability at the global level, which means a solution to some of the crises that were very “flashy” on the economic track during the past few years. Here, the question arises: How can the rapprochement between America and China affect the global financial situation? Will the countries of the Middle East be quickly affected by this positive scene?

In a conversation via Lebanon 24The expert in monetary economics, Layal Mansour, says that the US-Chinese dialogue may reflect positively on the dollar in the world, noting that the impact on the green currency regarding that rapprochement may be immediate, and we may witness some important changes, and she adds: “Any global political changes that inevitably affect The global financial market, and this is something that actually exists.

Likewise, Mansour made it clear that the impact of the Middle East countries on the recent rapprochement will not be immediate, and she said: “Countries in the Arab world in particular are linked to the dollar, and if that currency witnessed an improvement, for example, then the benefit could be related to the reserves of that currency they have or In terms of debt service that is being paid and repaid.

According to Mansour, the improvement of the dollar may not benefit various countries, noting that some countries may suffer from pressure as a result of this matter and may find that their financial affairs have changed, such as an increase in the value of the debts that they must pay or that the value of their reserves has decreased, while there are other countries. You may witness a positive trajectory.

In another context, Mansour considered that the trend of some Arab countries to liberate from the dollar is not realistic, noting that the green currency is liberal while there are other currencies that are not, and cannot be relied upon or linked to permanently, such as the “Chinese yuan,” and she adds: ” If the currency is freed from surrender or from futility, which is a bad thing, it will be one of the most difficult types of economic collapse. As for the currency liberation from success, it must be preceded by reforms, governance and transparency.

In view of this, Mansour found that the dominance of the dollar over the global economy will remain in place due to the strength of that currency at various levels, despite the many financial crises that the United States has witnessed recently, especially in terms of debt.

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