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INTERNATIONAL TRADE PAYMENT AND EXCHANGE RATE: THE TRADE BALANCE BETWEEN THE US AND OTHER COUNTRIES CAN IMPACT THE STRENGTH OF THE DOLLAR

Authors: Ortiqov Maxammadjon Adxamjon o'g'li;

INTERNATIONAL TRADE PAYMENT AND EXCHANGE RATE: THE TRADE BALANCE BETWEEN THE US AND OTHER COUNTRIES CAN IMPACT THE STRENGTH OF THE DOLLAR

Abstract

In this an explanation of the research aimed at identifying and optimizing the study methodology of the dynamics of the trade balance between the US and other countries can impact the strength of the dollar. This research analaysis an increase in exports can lead to a stronger dollar,while an increase in imports can lead to a weaker dollar. The research shows in the world, 40% of global trade is invoiced in US dollar (USD), despite the fact that United State accounts for only 10% of global imports and exports depending on the general economic conditions. Also, proposals and recommendations given on the method of regulating and organizing the formation of foreign exchange reserves in the Special Drawing Rights, as well as the influence of international trade between countries on the dynamics of the exchange rate In addition to that the dollar has also a unique role in the international payment system as main reserve and funding currency. Due to its extensive use in international trade and finance, fluctuations in the value of the dollar operate noticible foreign spillovers, much stronger than those implied by an appreciation of the euro (the second most widely used currency in global invoicing) or the yen. All in all, the USD is a pivotal currency in international trade and finance system, and its influence is likely to continue.

{"references": ["1.\tMakhlup F. The theory of exchange rate. This volatile exchange rate. Collection of articles. Per. from English. - Moscow: Delo, 2001. pp. 28-30. 2.\t Mundell R. A. Capital mobility and stabilization policy under fixed and flexible exchange rates. Canadian Journal of Economics and Political Science, vol., 29, 1963. pp. 475-485.; 3.\t Fleming J. Domestic Financial Policies under Fixed and under Floating Exchange Rates. International Monetary Fund Staff Papers 9, 1962. pp. 369-79. 4.\t Engle R.F., Granger C.W.J., \u00abCointegration and Error Correction: Representation, Estimation, and Testing\u00bb, Econometrica, 1987, Vol. 55, pp. 251\u201376 5.\tSubacchi, P. (2023), 'From the Bretton Woods System to the Global Non-system: The Trials and Tribulations of Slow Learning', Oxford Review of Economic Policy, 39(2), 195\u2013209. 6.\tVines, D. (2023), 'Creating a New Sovereign Debt Reconstruction Mechanism: Why Incentives, Risk Sharing, and CACS Will All 7.\tInternational Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity) 8.\tSwanT.W.Economic growth and capital accumulation. Economic Record (Wiley) 32 (2),1956. pp. 334\u2013361; 9.\tOrganization for Economic Cooperation and Development (OECD) definition, http://www.oecd.org."]}

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Keywords

Currency Intervention, CA, Export and Import, EME, Financial institutions, Real exchange rate, Geopolitical tensions, Monetary Policy, Foreign exchange market, International Investment position, SDR, International Monetary Fund, WEO.

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selected citations
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This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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