The classical market laws have ceased to work, yet the demand for the dollar remains high, according to Konstantin Ordov, head of the corporate finance and corporate governance department at the Russian Government’s Financial University.
The US, Europe and Japan have fired up their money-printing presses, but the move has not provoked inflation, the expert said. The dollar continues to be popular because it is used in international trade. Most central banks also store their reserves in dollar-denominated assets, Ekonomika Segodnya reports.
According to Konstantin Ordov, a weak dollar is unfavorable for global trade participants, so a sharp meltdown of the US currency is unlikely. The strength of the dollar lies in the great demand it enjoys, the expert concluded.