Trump s strategy to decrease USD
2/3/2017 10:33:23 AM
The previous currency chief of Japan’s Ministry of Finance considers President Trump’s “America First” policy, which wishes to decrease the trade shortage marks a fundamental shift in the country’s exchange rate policy.
The US has traditionally preferred a sturdy dollar, but this model appears to be changing, declared Hiroshi Watanabe, president of the Institute for International Monetary Affairs in Tokyo.
What satisfies Trump is the size of the U.S. trade shortage, the amount of exports from the U.S., and not the exchange rate or whether the U.S. requires a sturdy dollar,” Watanabe declared in an interview Jan. 31. “While abstaining from favoring a weak dollar, the U.S. Treasury Secretary may finally say the dollar needn’t be strong.
Watanabe added, “Japan is missing its longer-term power and it is dangerous to put faith in the Yen as a safe haven currency going forward”.