About this work
Exchange rates increasingly transmit economic and political shocks across borders. A softer dollar offers emerging markets some relief, yet credit spreads and term premiums can outweigh that benefit in financing conditions. Policy uncertainty and shifting investor positions amplify currency movements, while dollar liquidity remains central during stress despite gradual reserve diversification.
Cite this work
Marcello Estevão, Jonathan Fortun (2025). Global Macro Views: FX: From Buffer to Amplifier. Institute of International Finance.