Brad Setser points out that India doesn't peg to the dollar as much as China; India's forex reserves are falling, (this is me: while China's forex reserves are probably rising).
So we need to understand that the only really significant support for the US dollar's status as a central bank reserve currency comes from China, among state actors.
I think there is some risk that the US dollar can in the medium term lose its status as a central bank forex reserve currency.
Improved measurement of Exchange Market Pressure (EMP) - by Ila Patnaik, Joshua Felman, Ajay Shah. Exchange rates vs. exchange market pressure Changes in the exchange rate are very visible. But is the apparent c...
1 day ago