DoubleLine Paper: A New Multipolar Order Takes Aim at the U.S. Dollar

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Feb 04, 2021, 15:50 ET

LOS ANGELES, Feb. 4, 2021 /PRNewswire/ -- DoubleLine Capital LP has posted on DoubleLine.com a new paper titled "Taking Aim at the U.S. Dollar, the World Builds a Multipolar Trade-and-Payments," written by Bill Campbell, co-Portfolio Manager of the DoubleLine Global Bond Strategy.

For a copy of the paper, please click on this link: https://doubleline.com/dl/wp-content/uploads/Taking-Aim-at-the-Dollar-in-a-Multipolar-Order-January-2021.pdf

Since 1944, the U.S. has reigned as the world's reserve currency and hold the central place in the settlement of international payments. Washington, Mr. Campbell writes, has wielded the dollar's privileged status to effect trade tariffs and sanctions on other countries. However, he observes that in the competition of international trade, as in Newtonian physics, for "every action there is an equal and opposite reaction." Countries in Asia and Europe, he writes, are adopting new trading blocks and payment regimes aimed at the supplanting the dollar's central role in trade and finance.

"For the postwar period, the United States wielded the dollar's central role in global trade and finance to its advantage, trying to even the playing field for trading relationships and as a sanctioning facility. The end of this powerful, unipolar advantage might be at hand," Mr. Campbell writes. "The pendulum is swinging in the direction of a new, multipolar world. Countries are reclaiming autonomy in global trade, payments and finance. With the implementation of more regional trade agreements with local currency settlements, the dollar's once-dominant role in global finance likely will continue to erode."

About DoubleLine Capital LP

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SOURCE DoubleLine