Over the past 6-8 months, one could observe a gradual decline in the value of the dollar. Last year, the US economy came close to default. This year, financiers are predicting a real default that could further depreciate the dollar.
The information about the approaching default in the United States greatly worried people who hold deposits in dollar currency. In the hope of preserving their capital, investors are already starting to transfer their money to a more stable currency (euro and Russian ruble). Will the value of the dollar continue to fall? Will there be a default in the US?
Expert opinion
Analysts and financiers were roughly evenly divided over the dollar's depreciation. Some argue that this trend continues due to the crisis in the US economy, while others say that the fall in the value of the dollar has nothing to do with the payment of America's national debt. The former are inclined to think about an imminent default, since the United States cannot pay off its debts in any way. That is why the country is threatened with the so-called technical default.
Most of the dollars "walking" around the world are not confirmed by the country's gold reserves. In fact, this is ordinary paper, not currency.
Many people know that America has a huge national debt, which has an amount of 1.2 trillion dollars - a little less than 1/10 of the total debt. If the amount of debt repayment approaches the optimal one, then the country will face huge financial problems. That is why the dollar will continue to decline rather than rise during the year.
How the default and the fall of the dollar will affect the Russians
Alexander Savchenko (rector of the International Institute of Business) is of the opinion that, despite the decrease in the value of the dollar, dollar investors can benefit from this situation. The specialist believes that if the default occurs in the United States within a week, then at first the value of the dollar will rise. The world financial market will wait for some time for a solution to this problem from the United States. Also, for the first time, the market will find a shortage of the dollar currency. But it is not worth selling or transferring deposits during such a period. If the problem is not resolved within 3-4 weeks, then a sharp drop in the dollar will follow. That is why you should carefully monitor the slightest changes in the financial market, as well as the exchange rates. Otherwise, you may have more to lose than gain.
If you are concerned about the future of your deposits, then now is the time to think about transferring your savings into another currency. The most stable currency today is the euro.
Alexander Savchenko believes that the fall in the dollar and default can lead influential US banks to a real collapse - the situation that happened last winter will repeat and reach its end.
It is quite difficult for specialists to make long forecasts. In short, we can say that the current situation in the global financial market is quite complicated. The fall in the dollar is actually a reflection of the volatility of the US economy. That is why in the near future, with the onset of default, the dollar may fall sharply.
