The Wednesday Briefs 164 – 19 April 2023
THIS WEEK: De-Dollarization; Chinese Automakers; Sudan Strife; Fundamentals v. Liquidity; The Whisperer; S&P Sectors Update.
DE-DOLLARIZATION
Suddenly, a lot of people are talking about the dollar losing its status as a top reserve currency. They tend to be the same people who believe in the rise of a multipolar world. We are open minded on both counts but, despite an honest effort, we have found no evidence that either de-dollarization or multipolarity is imminent. We previously wrote about the multipolarity myth in the WB 131.
Last week, Brazil's President Lula joined the anti-dollar posse with this statement:
"Every night I ask myself why all countries have to base their trade on the dollar."