Dollar heg good—US spending collapses without it
Baxter 23- Executive Director and Global Macro Strategist at Morgan Stanley Wealth Management
Christopher K. Baxter, "Is the U.S. Dollar’s Dominance Under Threat? ," Morgan Stanley, 5-9-2023, https://www.morganstanley.com/ideas/dollar-currency-2023-- 嘉玮
The U.S. dollar has long dominated global trade and finance. It serves as the primary medium to buy and sell goods, as well as a safe haven for foreign reserves for financial institutions and businesses around the world.
Its dominant status gives the U.S. some big economic advantages. Because international trade is largely denominated in U.S. dollars, U.S. companies and consumers are generally less likely than their international peers to face foreign-exchange transaction costs or risks from shifting exchange rates. In addition, strong global demand for dollar-denominated U.S. securities, such as Treasury bonds, historically has allowed the U.S. government to borrow at relatively low interest rates to fund its spending needs.