3 Reasons Why US Dollars Lose Value – And Why It May Be Good for Your Wallet

The US dollar has long been recognized as a key currency around the world, but this year it continues to grow. It may be losing value.

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According to JP Morgan” USD It is the world’s leading reserve currency and the most widely used currency for trade and other international trade. However, that hegemony has recently been questioned due to geopolitical and geological strategic changes. ”

in particular, JP Morgan pointed out Some reasons why the US dollar is losing its value. This pointed out the following reasons for decooperativeization: This is a significant reduction in the use of dollars in global trade and remittance transactions.

• In the product field, Energy Transactions often price non-USD currency.

• US banks are not involved in the new payment system used for cross-border transactions.

• The share of USD in FX Reserve, a commonly used barometer of the importance of dollars, has declined.

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Some financial experts who spoke to Gobankingrates said there are several ways in which the value of losing the value of the US dollar could be good for the average American wallet.

Annie Cole, Edd, Money Coach and Founder Money essentials for womenIt is said that he thinks this way. Imagine the US dollar is equally linked to the European currency, the euro. suddenly, The US dollar is weakeningEuropean companies are more likely to buy American products than European products.

Cole said the kickstart could potentially buy American goods, inject external cash into the American economy, create an increase in demand for American goods, and perhaps create more American jobs.

According to Andrew Lokenauth, money expert and owner befluentinfinance“Here’s what I’m telling my clients. Usually, weaker dollars mean stronger stock market returns. My portfolio analysis shows that when the dollar falls 10%, multinational companies are S&P 500 In many cases, revenue increases by 15-20% due to conversion of overseas revenue. ”

Finally, Lokenauth added that inflation from the dollar could benefit homeowners with fixed-rate mortgages. According to him, an annual inflation rate of 5% is essentially a virtually 5% discount on the mortgage balance to homeowners.

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This article was originally published gobankingrates.com: JP Morgan: Why 3 Reasons Are Losing Value – And Why It May Be Good for Your Wallet