The Trends Behind the Forced FX Equilibrium

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The Trends Behind the Forced FX Equilibrium

Fourth week
February 2020

In the short term we face a situation of “forced” equilibrium in the FX market, which is conditioned by the restrictions and taxes that affect the demand of dollars. In the long term, these restrictions and costs must be granted flexibility due to their harmful effects, discouraging exports and affecting the behavior of businesses and individuals.