A strong dollar also negatively affects the U.S.

Greetings friends of the Project Hope community, today I want to share a post that is a product of some things that I have been reviewing and assessing around the global economy, and very specifically what concerns the power of the dollar as a reserve currency and its strengthening in recent months.

It is an area in which I have been interested in the last years, and every time I try to read a little more about it, although I know that I am not going to solve anything with that in terms of the world situation at an economic level (nor much less at a war level), at least for me it can give me a different vision of everything and how to take advantage of some situations.

The US dollar, as I said, has been strengthening a lot due to the measures that the FED has been taking, affecting all the countries in the world, however, not only the other countries are affected but also the United States itself, I would like to express what I have understood about it, with the hope of contributing something in this aspect and also, to know if you have other information that you can share. Let's start...

If the dollar strengthens, not only the countries of the world are affected, but also the United States... a few days ago I read this and I found it curious that a country that shows a strengthening of its currency can be harmed in some way.

On the one hand, tourism becomes much more expensive. For example, if I want to travel to the United States, it will be more difficult for me to acquire dollars, which will make tourism in that country decrease. Considering the importance of tourism as a sector in the U.S., and all that it activates, affecting this part of the economy is simply a very strong blow.

On the other hand, the owners of companies in other parts of the world who earn in local currency of the country in question, but who live in the United States, when changing the profits to Dollars, they will be less and less. Thus, a citizen who invests in dollars in a business in a country other than the US will see how a stronger dollar will also affect them.

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Obviously, all the countries in the world that have debt in dollars are finding it increasingly difficult to pay that debt, since they have to pay much more in their local currency to acquire the same amount of dollars. I see this particularly in Colombia, where last year, in the middle of the year, a dollar could be bought for 3800 Colombian pesos, however, now the same dollar is bought between 4600 and 4800 Colombian pesos.

If we consider that the debts of the countries are in the billions, the difference will be much more evident.

In general, a very strong dollar is not entirely positive for the world, at least I think so, even for the United States itself, which ends up being affected as well. Of course, this is a personal opinion, and I may be wrong, but I have recently been studying about it and I wanted to share these impressions with those who like to read me.

Thank you very much for reading this publication, I would like to know if you have anything to add on this subject.

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