The sharp depreciation of the American currency could be caused by the huge debts of the United States government.
According to RIA FAN, Morgan Stanley chief economist Stephen Roach said that the collapse of the US national currency is also facilitated by problems in the global economy.
“Now everything is playing out even more dramatically than originally thought. These processes are at an early stage and the pressure on the dollar will continue to increase”, – Roach said.
The American economist noted that the US financial system is in an even more vulnerable position, the number of people infected with coronavirus is growing, which in turn leads to a worsening of the situation. In early 2021, the world’s largest economy could contract by one percent. Such figures were previously announced by JPMorgan analysts.
Roach predicts that the value of the US dollar will decline by at least 30% by the end of 2021. It will be very difficult to prevent such processes.