The latest data from the IMF shows that as of the end of December 2023, the total global foreign exchange reserves reached 12.33 trillion US dollars, of which the US dollar ranked first with nearly 60%, and the euro followed closely with 20%.
The foreign exchange reserves of the US dollar determine the dominance of the US dollar in the world. What is the surprise of the Fed's 50 basis point interest rate cut this time?
1. Narrowing the interest rate gap, some funds will flow back to my country, which is beneficial to the stock market to a certain extent.
2. The depreciation of the US dollar and the increase in my country's exchange rate against the United States are beneficial to import-oriented enterprises.
3. Stimulating global economic growth is conducive to increasing employment.
4. Entering the era of inflation, prices will increase to a certain extent.