ICYMI: Trump advisers consider penalties for nations shifting away from the US dollar

There’s never a dull moment when Trump is in the headlines, eh? The latest is that his economic advisers are discussing ways to actively stop countries from shifting away from using the US dollar. This is said to be an effort to counter the actions by key emerging markets to reduce their US dollar exposure.

The discussion includes penalties for those who are seeking out alternative engagements in bilateral trade in currencies other than the US dollar. Those penalties could range from export controls, currency manipulation charges and tariffs.

In March, this was what Trump commented to CNBC on the dollar:

“With Biden, you’re going to lose the dollar as the standard. That’ll be like losing the biggest war we’ve ever lost. I hate when countries go off the dollar. I would not allow countries to go off the dollar because when we lose that standard, that will be like losing a revolutionary war. That will be a hit to our country.”

Well, he’s not president yet but it’ll be good to keep this in mind when we get to the election in November.

This article was written by Justin Low at www.forexlive.com.