Why The Dollar Poses A Global Headache 4: More Isn’t Better

"The Dollar is our currency but it's your problem" John Connally

Since, in general, only American banks can access the Fed’s liquidity programs, like the SRF and the Reverse Repo overnight facility, the rest of the world is left with no way to raise the Dollars they so desperately need.

Which is where foreign central banks step in by selling their foreign reserves to provide their local banking systems with Dollars – but having more reserves isn’t necessarily better.

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