Dollar's Impact on Global Economies

The recent surge in the U.S. dollar, particularly as it approaches critical thresholds like 110, highlights significant challenges for international economies. As the dollar strengthens, it creates a ripple effect, impacting liquidity in global banking systems and affecting foreign debts that are dollar-denominated. Economies like Indonesia have shown concern, with central banks pledging to defend their currencies to prevent devaluation against the dollar. Ultimately, the stronger dollar could exacerbate global economic contraction, increasing the cost of commodities and leading to more financial burdens on countries already struggling.