Ep. 66: De-dollarization - Should We Worry? with Andy Fately

This week, the Inflation Guy brings another special guest on the set.

Andy Fately is a veteran of more than 40 years in the foreign exchange markets, trading spot, forwards and options as well as running businesses for major US and international commercial and investment banks.  He is known as the FX Poet (https://fxpoetry.com/about-2/), but really focused on creating solutions for risk managers for problems as they arise.

Andy and the Inflation Guy tackle the question that naturally follows from headlines like these from earlier this year (links take you to the story):

• Russia embracing the Chinese yuan for much of its global trade
• Saudi Arabia considering invoicing oil exports to China in yuan
• France buying gas from China in yuan
• Brazil and China agreeing to ditch the dollar for bilateral trade
• BRICS countries planning to develop a new reserve currency
• Kenya promising to ditch the dollar for oil purchases
• ASEAN members discussing dropping the dollar for cross-border payments
• India settling some trade in rupees

Should US citizens, or dollar-users in general, be concerned that the sun may be setting on the US Dollar? How would this happen, and is it likely to happen? Andy Fately and the Inflation Guy combine their knowledge (which, to be fair, mostly belongs to Andy) and push back a bit on the 'bear porn' disaster cases by walking through the actual mechanics that would be involved in a de-dollarization.

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