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Dollar risks rising but Plaza Accord-style coordination not feasible now: ex-IMF adviser

Asia-Pacific 1 source 1 country 🔦 Under-reported 15m ago

# Dollar Risks Rising, But Coordinated Response Unlikely

An ex-IMF adviser has warned that the U.S. dollar faces upward pressure, but that international coordination similar to the Plaza Accord is not currently feasible. The warning highlights growing concerns about the stability of the dollar-centred monetary system.

The adviser cited central banks' focus on domestic objectives as the primary obstacle to achieving the kind of coordinated exchange-rate intervention seen in the Plaza Accord era. This domestic prioritisation means that multilateral efforts to manage currency fluctuations and support a transition to a more balanced global monetary system are increasingly difficult to arrange.

The comments underscore a significant challenge facing the international monetary order. As concerns mount over dollar volatility and the sustainability of the current system, the lack of coordination mechanisms limits the tools available to policymakers for managing the transition to a more multipolar monetary framework. The situation reflects broader tensions between national economic interests and the need for global monetary stability.

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Read the full story at the source South China Morning Post · HK