Strong Dollar

By Isaac Cohen*

The US economy strong performance last year, amidst the slowdown in almost all the other advanced and emerging market economies, is reflected in the strength of the dollar. Against a basket of currencies, since last May, the dollar has increased 19 percent and since July, the dollar has increased 16 percent against the euro and 15 percent against the Japanese yen.

It should be recalled that the US dollar is coming out of a period of relative weakness. For example, in 2007, as a consequence of the Great Recession, the US dollar declined almost 8 percent. By contrast now, as a result of the weakness in the euro zone economies, the euro is approaching parity with the US dollar. After reaching in the past an exchange rate of $1.40, the euro this week is approaching $1.10.

As declared by the young Italian Prime Minister Matteo Renzi, “my dream is parity” between the dollar and the euro. He made the statement in an interview with The Wall Street Journal, at the World Economic Forum in Davos, Switzerland, just one day before the European Central Bank announced a bond purchasing program, to stimulate the euro zone economies, which weakened the euro even more.

Therefore, what we are witnessing is the adjustment of exchange rates, according to the relative strength or weakness, of the advanced economies.

*International analyst and consultant. Commentator on economic and financial issues for CNN en Español TV and radio. Former Director, UNECLAC.

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About Ramón Jiménez

Ramón Jiménez, actual Managing Editor de MetroLatinoUSA. Periodista que cubre eventos de las comunidades latinas en Washington D.C., Maryland y Virginia. Graduado de la Escuela de Periodismo de la Universidad del Distrito de Columbia. Galardonado en numerosas ocasiones por parte de la Asociación Nacional de Publicaciones Hispanas (NAHP) y otras organizaciones comunitarias y deportivas de la región metropolitana de esta capital. También premiado en dos ocasiones como Mejor Periodista del Año por la cobertura de la comunidad salvadoreña; premios otorgados por la Oficina de Asuntos Latinos del Alcalde de Washington (OLA) y otras organizaciones. Ha sido miembro del jurado calificador en diferentes concursos literarios, de belleza y talento en la región metropolitana. Ha visitado zonas de desastre en Nicaragua, Honduras y El Salvador e invitado a esos países por organizaciones que asisten a personas de escasos recursos económicos. Antes trabajó en otros medios de prensa de Virginia y Washington, D.C., incluyendo reportajes para una agencia noticiosa mundial.

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