Brad McMillan, CEO of Commonwealth Financial Network, considered the negative forecasts for the dollar exaggerated and anticipated that there will not be a “collapse in the short and medium term.”
In the midst of the tensions still active due to the banking crisis that had broken out in the United States and that led to the bankruptcy of the Silicon Valley Bank and Signature Bankaccompanied by the debate on how the persistence or not of the updating of the interest rates In a scenario of low inflation but still present in the world, the dollar it is looked at by analysts who lower the price of the so-called weakness of the US currency.
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Brad McMillan, CEO of Commonwealth Financial Network, considered the negative forecasts for the dollar exaggerated and anticipated that there will not be a “collapse in the short and medium term” and noted: “As long as the United States is the largest open trading economy, as long as all in the world want access to their economy, and as long as it is a lot of work and a big inconvenience to change, the dollar’s position as the global reserve currency is secure.”


McMillan was cautious about his forecasts for the dollar and a possible global collapse.
In parallel, he points out that China tries to position the yuanbut it was not so easy since it owns over a trillion dollars in US assets. “When China sells things to the United States, is paid in dollars. Then you have to invest those dollars. Since there are so many of them, the only real option is the values of the United States Treasury“, he explained.
The dollar is quoted almost at the same level against other currencies during the last decades. “It goes up and down, but we’re still in the middle of the range,” McMillan remarked.
“If we consider the markets as a warning system, they are still flashing green. When they start to turn yellow or red, then it will be time to worrybut that is not what we are seeing”, described the ‘hawk’ of Wall Street.
The three keys to the power of the dollar in the world today
For McMillan there is three factors that determine the strength of the dollar as the currency with the highest financial hierarchy:
- He size of the United States economy:
- nature freely dollar convertible.
- the relative political and economic stability of the United States compared to Europe and China.
“When you look at all the pieces, the US dollar is not only the established option and, in most cases, the smart choice, but it is the only option. There really is no alternative,” she concluded.
Source: Ambito