3 Reasons for the US dollar to lose the value of the value – and why it might be useful for your wallet

A long time ago, the US dollar was recognized as an important currency worldwide, but there were increasing concerns this year as You may lose value.

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according to Jp Morgan“the US dollar It is the world’s initial backup, and it is also the most used currency for trade and other international transactions. However, its domination has become a question of question recently due to geopolitical and geographic transformations. “

especially, Note jp Morgan Some of the reasons that the US dollar loses the value. He pointed to the following reasons for the cancellation of fading, which is the significant decrease in the use of the dollar in commercial transactions and global stove:

• In the area of ​​goods, energy transactions are often priced in non -USD currencies.

• American banks do not participate in the new payment systems used in the cross -border deals.

• The dollar’s share of FX reserves has decreased, which is a common use measure of the importance of the dollar.

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Some financial experts who spoke to GoBankingches said that there are some ways in which the value of the US dollar loss may be a good thing for the regular American portfolio.

Annie Cole, Ed, Money Coach and Founder Basics of money for womenIt was said to think about this way: Imagine that the US dollar is equally linked to the European currency – the euro. Suddenly, and The US dollar weakensWhich makes European companies more likely to buy American goods through European goods.

Cole said that this starts a course of foreign countries that buy American goods, and leads to the injection of the American economy with external funds, which may create the increasing demand for American goods and perhaps create more American jobs.

According to Andro Lucinot, money expert and owner Beflunetinfinance“This is what I tell my client – usually the weakest dollar means the returns of a stronger stock market. S & P 500 We often see profits jumping from 15 to 20 % due to the conversion of revenues abroad. “

Finally, Lokenauth added that inflation from the weak dollar can benefit homeowners with a stable rate. According to him, the annual inflation rate of 5 % gives the home owner a 5 % discount on the mortgage balance in real terms.

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This article was originally appeared on Gobankingheshes.com: Jp Morgan: 3 reasons the US dollar loses the value – and why it might be useful for your wallet