The Dollar System in the Era of COVID-19 | Currency Risk Mgt
Thought Leadership Webinar: Understanding the global monetary system means understanding the US dollar's unique role as the global reserve currency. But has global demand for high-quality, dollar-denominated assets saddled the United States with a financial ‘Dutch Disease’? How has COVID-19 impacted the dollar system? What does it mean for investor portfolios?
Presented By:
Aaron Cantrell, Director, Economic Research
Katy Husband, Research Analyst & Sustainability Officer
Record Currency Management
Date:
August 19, 2020
Time:
10:00 a.m. - 11:00 a.m. EDT
3:00 p.m. - 4:00 p.m. BST
Session Length:
60 minutes
The global 'dollar system' depends on three interlinked facts. First, USD is the unit of account for the majority of international trade and commodities pricing. Second, dollar assets (e.g., cash and US Treasuries) form a capital bedrock for much of global finance. Third, dollar borrowing represents a large majority of all cross-border credit. In other words, dollar liabilities outside the US are significant. "Reserve currency" only tells part of the story: a major reason behind demand for dollars and dollar assets is that bills and debts are also denominated in USD.
In a matter of weeks, COVID-19 both exposed and further expanded the reach of the dollar system. The global credit explosion facilitated by the Federal Reserve, IMF, Multilateral Development Banks, and others cements a demand for dollars as those liabilities come due. And yet, the system might also be creaking. Not only is reserve currency status a political affair abroad (an 'exorbitant privilege' after all), with both Europe and China pushing to contest it, but it also has political implications within the US.
Transformations in the global monetary system impact the size and shape of currency risk in international portfolios. In this webinar we will review recent evolution in the global monetary system and currency markets, ramifications for investment portfolios, and techniques for managing currency risk.
| About Our Experts |
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Aaron Cantrell leads economic research for Record Currency Management, a leading currency management firm managing $63.3 billion in bespoke currency hedging, active currency, and other currency solutions on behalf of institutional clients throughout the world.
Aaron holds an MPhil in Economics from Balliol College, Oxford and an MA in International Relations from Johns Hopkins-Nanjing University in China. Previous experience includes research roles at a Beijing bank, a Washington think tank, and the University of Oxford.
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Katy Husband is a Research Analyst in the Economic Research team and a Sustainability Officer at Record Currency Management, also chairing the ESG Committee.
Katy graduated from University of Oxford with a degree in History and Economics, specializing in Central American economic development.
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Members (Sustaining, Corporate, RIM & Contributing)
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COMPLIMENTARY |
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Non Member |
$30 USD
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