ACRA: Significant weakening of US dollar can paralyze global trade
Baku, Azerbaijan, Oct. 28
By Taleh Mursagulov - Trend:
A significant weakening of the US dollar can paralyze global trade, Zhannur Ashigali, Associate Director of Sovereign Ratings and Forecasting Group of ACRA, told Trend.
Ashigali noted that the weakening of the US dollar could introduce considerable uncertainty in the stock exchanges.
"It is essential to recall that a number of national economies [Zimbabwe, Timor, Ecuador and El Salvador] have currency regimes linked to the US dollar, or even use the US dollar as a domestic currency, that is, they are officially 'dollarizable'," he said.
Commenting on the possibility of a double appreciation of the euro against the US dollar, Ashigali noted that such a scenario is not real in the short and medium terms.
"Even the most pessimistic scenarios for the US economy do not imply such a significant depreciation of the US currency against the euro," he said.
Ashigali said the significant strengthening of the US dollar, of course, creates additional risks for the economies of developing countries, but does not bear risks for the entire global economy.
Russia’s Analytical Credit Rating Agency (ACRA) was established on November 20, 2015. The shareholders of ACRA are the 27 largest Russian companies and financial institutions.