Standard Charterd: The dollar could face a significant drop in 2026

The US dollar has a significant decline in value during the next year, as the policy of Donald Trump increases the burden of debt in the United States without contributing to the stimulation of the economy, according to the “Standard Chartard” bank. In a research note, the bank indicated that the debt of the US government, together with the amounts owed to foreign investors, has risen simultaneously over the past few years, exposing the dollar and US Treasury bonds to the risks of foreign investors, with the impact of lent on the long run. Steve Engenerator, head of the World Currency Research Department of the Ten Group of the Bank, wrote that the expansion of the US budget deficit reduces national savings and increases the need for foreign savings, which is reflected in increasing the shortage of the current account, and explains that maintaining this high deficit may not succeed in the coming months. You may also be interested in: The dollar is declining with high -trade currencies thanks to postponing US fees for the risk of weakness of the dollar. England. It is likely that foreign creditors regarding the sustainability of religion will increase if customs duties and tax policies fail to stimulate growth, adding that this anxiety is “likely to” occur in the form of risk monins, either by high interest rates or dollar weakness. ” The dollar and treasury bonds were already under pressure due to the hostile customs imposed by Trump, and the associated confusion in the implementation, which led to some investors questioning the stability of US assets. Although Trump shows his willingness to negotiate commercial policies, the concentration of investors has begun to turn to public financial issues and the size of the new debt caused by the tax law whose value trillion is worth. The bank said foreign investors are still reluctant to completely abandon safe US assets and wait to see if Trump’s policy will bring about economic growth. According to England, the Tax Act could boost the economy during the current year if approved, but this effect could fade by mid -2026 or 2027, so that concerns related to long -term consequences on growth and religion would return. The pressure on the sale of the dollar expects investors to be conservative over increasing their exposure to the dollar as commercial policy remains volatile, which could lead to a prominent movement in the value of the dollar. He added that improving growth prospects in China and Europe could increase pressure on the dollar. He pointed out that the effectiveness of any facilitation in monetary policy can be limited by the ‘federal’; Since low short -term effects may not extend to long -term effects, as investors see that the usual increase in deficit during stagnation periods increases an unclean religious path. He explained that the United States did not face bankruptcy, as long as the government could issue debt based on dollars, but he warned that the actual failure to pay the risk of inflation could become a tangible danger. He concluded by saying, “If the course of the debt is not combined, the conditions for loans can become more expensive, with risk ponderuses, increasing the cost of borrowing in the public and private sector.”