Question

agree or not?

Wealthy countries have spent more than $ 9 trillion on overcoming the economic impact of COVID-19. And costs are currently increasing as governments try to ensure the functioning of the economy after a pandemic. The damage done can go beyond the financial crisis and possibly even the Great Depression. This is the worst economic crisis in 70 years. Now investors are rushing to a safe place. 11-year growth in US stock markets has ended. And there is one reliable harbor that everyone is counting on, and that is not gold. This is the dollar. Despite all the talk that the dollar will lose its reserve currency status, it turned out to be just that, talk Emerging markets suffered a major blow to the dollar. The Indonesian rupee has lost nearly 14 percent of its value since the beginning of the year. The Russian ruble and the Mexican peso lost a fifth of their value. The problem for emerging markets is that they may want to lower interest rates to stimulate the coronavirus-affected economy, but it will further undermine their currencies. And interest payments on dollar debts have just grown, having unbalanced finances. The pound fell more than 10 percent, the level that was last seen in 1985. The United Kingdom’s divorce from the European Union violated the stability of the pound, which is believed to have been tied to the fate of the continent. The best currency is the Argentine peso, the best in the sense that it fell the least compared to other Latin American countries. The fact that he introduced capital controls restricts cash flows from the country to overcome the economic crisis certainly helped. The dollar has been the leading currency in the world for more than a century. Today, more than 60 percent of all foreign bank reserves and 40 percent of all debts are held in US dollars.

Answer 1

Answer: Yes, I agree with this post that in future Dollar can prove to be a good investment option for the investors. The impacts of COVID-19 will be more or equivalent to the financial crisis and even great depression as all the economic activities have come to a standstill. There is no certainty about when the normalcy will be there and whether there will be a reoccurrence of COVID-19. The dollar has not only now but also in the past proven to be a strong and safe investment instrument for the investors. Dollar is a global currency and a large portion of trade is carried out in terms of dollars. It is because of this reason that the demand for dollar has remained strong. As in the current situation, the emerging economies are facing a problem in recovering their economic growth; they will have to provide interest rate cuts which will devalue their currency. Hence dollar will definitely go strong and will be a major investment option because of underperformance stock markets.