b'Axiom Explores the Global Impact of a Weaker DollarStrategic insights for businesses in a changing currency landscape.The dollar is our currency, but yourUSD to encourage exports and boostdominant superpower. The global problem. This famous line was delivereddomestic manufacturing. crash in 2008 and the pandemic by John Connally, President NixonsCrucially though, the USD is also the charismatic Treasury Secretary, to theglobal reserve currencywhich meansin 2020, were key moments of G10 in 1971.markets, commodities and most ofthe 21st century where everything At the time, Europe held large USDglobal trade is priced in USD. Manychanged. Could Trumps tariff reserves and the move to deliberatelycountries subsequently hold vast deflate the USD held major repercussionsreserves of dollars and USD denominatedboard in the Rose Gardenfor Europe. The resulting inflationbonds. As developing economies havebe next?and limited growth tainted Europeanbecome larger, currency manipulation economic policy for the rest of has become more prevalent, and inDevan Hayles from Axion questions.the decade. many circumstances, the movement ofWho knows. But a weaker USD is 50 years on and history appears to bethe dollar is outside the control of thesomething we should all be prepared for.repeatingDonald Trumps tariffs haveFederal Reserve.laid waste to global markets. GrowthThe desire for a weaker dollar is drivenContact here: figures and inflation figures are underby trade, but also Americas standing in+44 20 8126 5950. the microscope again. But this time,the world. A devaluation of the USD wasd.spencer-hayles@axiomifs.co.ukglobal trade is more interconnected andlargely dismissed on the campaign trail,www.axiomifs.comsovereign debts are higher than ever. but the recent decisions made by the So why is this happening? Is US tradeTrump administration would suggest it is the only driver behind the decisions a central part of their four-year agenda.being made? When I started this job, in 2007, The dollar has weakened by over 10% since Trumps inauguration inthe GBP USD was trading at 2.10, January. While campaigning, thethe 30-year average was over Trump administration made no secret of their desire for a weaker1.65, and the USA was still the BearingNet invoices in US Dollars, Euros and GBP, so money exchange is an important part of our business, and exchanging money at the right time is very important. We have been working with Axiom for over two years now, and they even came to our User Meeting in Vienna. We have built a great relationship with Axiom and find their friendly and helpful approach works really well for us as a company. Axiom help to advise us on setting up Forward Contracts when there is a great rate, and also advise us when a spot rate is great to exchange some extra money, if we have it. Having this type of advice is invaluable to us as we dont have that kind of expertise in house (or the time to monitor the markets, which we all know are extremely volatile!), so being able to rely on Axiom to give us the best information is vital for successfully exchanging our currency.Nicola Beer, Managing Director at BearingNet36'