Our tariff-era dollar, your problemListen to this articleA worker displays US dollar banknotes at a New Delhi money exchange on July 30, 2025. This implies that even if the greenback weakens in nominal terms, the periphery may receive less effective dollar liquidity than it does in a typical depreciation cycle. Heightened uncertainty can also lift risk premia worldwide, dampening the spillover effects of a weaker dollar, including higher risk appetite and renewed capital inflows into emerging markets. This means that financial conditions may not improve as much as one would expect in a weaker dollar environment. We may be entering a tariff-era version of what then-US Treasury Secretary John Connally famously described in 1971 as "our currency, your problem".

Source: Bangkok Post February 03, 2026 23:04 UTC