Most read 2021: Were predictions of the dollar’s decline warranted?
Monday 27 December 2021 – Vol.12 Ed.52.1
The year’s top stories: Don’t overplay the dollar’s decline
By Mark Sobel in Washington
Many commentators predicted a grim year for the dollar. They pointed to surging risk appetite, a twin deficit crash and the end of a strong dollar cycle. But Mark Sobel, writing on 5 January, took a different line. The dollar may indeed fall throughout 2021, he admitted, but his assertion that the arguments for a big slump were overplayed has been borne out by the dollar ending the year strongly.
Read the full commentary on the website.
The year’s top stories: Trichet calls for ‘progressive, orderly change’ in reserve currencies
By David Marsh and Clive Horwood
A former ECB president called for, at the July launch of OMFIF’s Global Public Investor, central banks to transition away from reserves being dominated by the dollar. Jean-Claude Trichet also, however, warned against any dramatic action, as David Marsh and Clive Horwood wrote on 21 July. While such changes do not happen overnight, the reasons Trichet argued for a shift, as well as for central bankers to embrace climate change mitigation, may still hold true.
Read the full commentary on the website.
