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Musk Blames Fed's Policy for Eroding US Dollar’s Value

© Photo : taken from social media Screaming dollar
Screaming dollar - Sputnik International, 1920, 30.03.2023
MOSCOW (Sputnik) - American billionaire investor Elon Musk has blamed the US Federal Reserve’s tight monetary policy for hurting the US dollar’s position as a global safe-haven currency.
"Serious issue. US policy has been too heavy-handed, making countries want to ditch the dollar," Musk wrote on social media.
The tech investor was responding to an analysis by Genevieve Roch-Decter, chief executive of the Canadian capital market advisory firm Grit Capital, who warned that the US dollar was slowly losing its reserve currency status.
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The Fed hiked key interest rates to nearly 5% in March in a bid to stem the soaring inflation that is reportedly running about three times higher than the pre-pandemic average.
Musk said that the adverse effect of the Fed’s interest rate policy was exacerbated by "excess government spending, which forces other countries to absorb a significant part of our [US] inflation."
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The online debate over the Fed’s decision to make the most aggressive interest rate moves in decades followed an announcement of a deal by China and Brazil that will allow them to trade in their national currencies and drop the dollar as an intermediary.
China also completed its first yuan-settled LNG trade with France on Tuesday, while its yuan-denominated trade with Russia has spiked massively since last year. Roch-Decter argued that markets were shifting to the yuan in a sign of China’s growing global influence.
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