We will witness many changes in the USA with the Biden administration. According to the Wall Street Journal report, Janet Yellen, the name Biden intends to take over the US treasury, will make important statements about the future of the dollar on Tuesday.
Yellen, who is expected to give a speech at the US Congress on Tuesday,
He will make a presentation to the Senate about the future of the dollar and possible risks. According to Yellen;
“The value of the US dollar and other currencies must be determined by the markets. Markets are pricing to reflect changes in economic performance. This facilitates adjustments in the global economy. “
As you know, the Trump administration followed a competitive exchange rate policy, especially due to the trade wars it started with China. It did not take serious measures against the dollar’s depreciation. This situation was contrary to the traditional approach of the USA.
As a result, while the US dollar weakened day by day, limited supplies and developed country currencies appreciated against the dollar.
With the Biden administration, it is expected that the competitive exchange rate policy will be abandoned and a return to the traditional approach to the “strong dollar” policy implemented by Clinton in 1995.
In this respect, Yellen’s statements tomorrow are important.
According to The Wall Street Journal, Yellen said, “The United States is not looking for a weaker currency to gain a competitive advantage. We must not allow other countries to do this. ” ready to say she.
We saw serious rallies in assets with limited supply and stock markets during the weakening of the dollar. With the new administration, if the dollar starts to gain strength, all assets indexed to dollars, especially Bitcoin, may face value loss.