De-Dollarization, FX, and Treasuries: Macro Matters

In this Macro Matters edition, host and BI Chief U.S. Interest Rate Strategist Ira Jersey is joined by BI Chief G10 FX Strategist Audrey Childe-Freeman and BI Asia FX and Rates Strategist Stephen Chiu. The trio discuss their report “Mega FX Trends: Regionalization vs. De-Dollarization,” in which they note the dollar is likely to remain the dominant reserve currency, but regional trade blocks may form. Childe-Freeman highlights the challenges for the euro to overtake to dollar, such as lack of fiscal and banking union within Europe. Chiu suggests that Chinese financial markets need to mature further for the yuan to greatly increase its use in international transactions, but notes the yuan could reach FX reserve levels similar to the pound sterling or Japanese yen. Mega FX Trends: Regionalization vs. De-Dollarization: https://blinks.bloomberg.com/news/stories/R8IMK9T0AFBB