Would Gradual De‐Dollarization and More Financing in Local Currencies Boost Trade?

Would Gradual De‐Dollarization and More Financing in Local Currencies Boost Trade?

The article summarizes arguments in favor of de‐nominating trade finance in local currencies. By reducing exposure to policy developments in reserve currency countries and improving the allocation of currency risk with the help of global currency risk markets will have a positive long‐term impact on stability, trade volumes, and growth.

 

 

Image: Niels Steeman via Unsplash