alt Hacker NewsThe export driven economies like China or the EU rely on the dollar to weaken their own currencies for competitive trade. Without it, natural FX mechanisms would naturally begin to appreciate their currencies and make their exports uncompetitive.
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FpUser • yesterday at 4:34 PM
>"The export driven economies like China or the EU rely on the dollar to weaken their own currencies for competitive trade"
I have about zero clue how finances really work but it looks to me as the statement is only true if the dollar is the predominant currency for international trade. This looks to be slowly changing for various reasons.
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According to USTR data the EU had a 200bn goods surplus, but a 100bn services deficit in 2024.
So a 100bn deficit out of 800bn total US imports.
The deficit is there, but it's not nearly as lopsided as some reporting would have you believe.