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Illya Gerasymchuk
Financial & Software Engineer

weaker US dollar means more USD credit issuance abroad - here's why

User Illya Gerasymchuk -

2025-08-15 01:05

weaker US dollar means more USD credit issuance abroad - here's why

foreign banks frequently borrow USD through wholesale markets with a local currency denominated collateral

when USD depreciates against a local currency, offshore USD credit now has a reduced debt service

weaker US dollar means more USD credit issuance abroad - here's why