MOSCOW, 12 Aug. The dollar is unlikely to be seriously affected by problems with the US national debt, Dmitry Babin, an expert on the BCS World of Investments stock market, told Prime agency. According to him, the US government's external debt is denominated in the national currency. This means that you should not expect a default on it. As a last resort, the regulator will «print» dollars to service the debt. The expert recalled that the Fed is now buying up government bonds and mortgage-backed securities.
«True, this is presented as a temporary measure to support the economy, but it has been in effect since the 2008 crisis, and after the market collapse in March 2020 caused by the pandemic, the monetary stimulus program has increased significantly: the Fed pumped more liquidity into the financial system than in previous 11 years «, — said the analyst.
Babin allowed, in the event of a new crisis due to the US national debt, the occurrence of a chain reaction of defaults in other markets and a shortage of dollars in the global financial system. According to the interlocutor of the agency, this will lead to an increase in the dollar, since the American currency is still a protective tool.
The expert told how it is very profitable to buy currency