US Dollar to go back to US20 on April 1st, as China says it will halt cryptocurrency trades
By Andrew HarnikIf you’ve been following the news over the last few days, you’ve likely heard that the US Dollar is going back to its US20 rate, meaning it will revert to a fixed exchange rate for the next 12 months.
That is, if the US government doesn’t change its mind and end its efforts to block cryptocurrencies.
As Bloomberg notes, the move is expected to be finalized on April 15, when the US Treasury Department will officially issue its decision on the matter.
As of April 14, the US dollar had gained 0.27 percent against the yen, as of noon local time, according to data from the CoinDesk USD/Euro exchange rate tracker.
The US dollar rose 0.2 percent against a basket of currencies in Hong Kong, Singapore, and Taiwan, while the Japanese yen edged up 0.1 percent.
The currency also moved lower against currencies in India, Mexico, the Philippines, the Dominican Republic, and Turkey.
While the move has led to some speculation about whether the US will see an increase in its central bank’s interest rates in the coming weeks, the country’s central bank has not issued a decision yet.
The announcement, made by the US central bank last week, did not say what its intent was for the change.
The news is likely to prompt a major increase in the price of US stocks and other assets, as investors are already feeling the effects of a weakening global economy.
Bloomberg also notes that the move to end trading in the US currency will likely push the US economy back into recession, though it’s unclear how severe that will be.
If the US doesn’t go back, it will likely be a sign that the world economy is finally starting to stabilize, as the global economy has been on a downward trend since mid-2015.