Dollar without a laxative. Trump is trying to make it great again

© RIA Novosti / Michael Kutuzovaa in photobacteria USADollar without a laxative. Trump is trying to make it great again© RIA Novosti / Michael Kutuzovaa the image Bank

US President, Donald trump has set himself and the whole of America the role of strengthening of positions of dollar in the world. He wants to see the U.S. currency strong. In the meantime, the exchange rate of the dollar against major world currencies falls: 2017 index USDX fell more than 10 percent. As trump trying to make a buck great again — in the material RIA Novosti.

Its hand the Lord

Objective preconditions for the strengthening of the dollar today is created, I am sure Donald trump. According to him, the us currency should be strengthened in connection with the positive situation in the U.S. economy. «The dollar will be stronger and stronger. I wish he was strong,» the President said.

However, an agreed position on this issue from economic authorities of the United States, it seems not. The head of the American Ministry of Finance Steven Mnuchin, answering questions of journalists on the sidelines of the world economic forum in Davos, said that a weaker dollar benefits the economy.

«Obviously, the weakening dollar is good for us as favors,» said the Minister. And added that the short-term dynamics of the national currency does not cause fears.

Another thing — the long-term prospects. Here Mnuchin in solidarity with their President. «The strength of the dollar, a reflection of the strength of the us economy and the fact that he was, is and will be a reserve currency number one,» said the Finance Minister.

However, the White house is convinced that a strong dollar needed America today, and therefore requires urgent action. In many respects this is what dictated his decision to put at the head of the Federal reserve system (FRS) the person — Powell’s.

In the record of the protégé trump’s work in commercial banks and the Ministry of Finance as Deputy Minister. Since 2012, Powell serves on the Board of governors of the Federal reserve. January 24, the Senate approved his appointment, and in February he will begin his duties, the head of the fed.

In December 2008, the rate dropped to 0.25 percent and retained this record low value of seven years. The game to increase the beginning of Janet Yellen to lead the fed in 2014. Since its filing in December 2015, the rate increased to 0.5 percent, a year — to 0.75 per cent, in the spring of 2017 to 1 percent, and in the summer, to 1.25 percent.

Against the further increase of Yellen objected, considering that it could trigger an economic crisis. Powell sees no such risks. So the fundamental decisions that affect the dollar, can be implemented fairly quickly.

Among experts there is no consensus about what will harm or not the U.S. economy imminent strengthening of the USD. Moreover, they see contradictions between the words and deeds of the President of the United States.

Analyst «Discovery Broker» Andrei Kochetkov reminded that the overall policy trump call proinflationary. And the weak dollar will be beneficial when the American company will return production facilities to the territory of the United States.

«Presidents, as practice shows, not very versed in these matters. In fact, a strong dollar is not profitable for US, because the competitiveness of American goods and services will decrease,» — said the chief researcher of the Institute of USA and Canada Michael Portnoy.

On the other hand, associate Professor of the Department «Regulation of financial institutions», faculty of Finance and banking, Ranepa Yury Tverdokhleb convinced that the US economy has received all the preferences from the weak dollar, and this page of history could be inverted.

«The financial authorities of America will try to strengthen the national currency. Only a strong dollar can regain its position in international payments and as the world’s reserve currency», — said the expert.

So setting the trump on the strengthening of the dollar sooner or later will affect the cost of black gold. However, this will not happen immediately, says Tverdohleb. The fed’s rate hike will take effect within a half to two months.

«In the near future, the fluctuation of the dollar to other currencies is possible within three to five percent. Oil prices will remain stable. The reason for the sharp weakening of the ruble I don’t see», — he said.

Recall that in the basic forecast of the Ministry of Finance of Russia for 2018 laid the average price of Urals oil at 43.8 per barrel and the average us dollar exchange rate — 64.7 rubles per dollar. At the end of last week’s «American» fell below the psychological mark of 56 rubles, and oil is entrenched at the turn of 70 dollars per barrel.

Source