Dollar Shortage
Categories: Econ, International, Forex
Because America is America, the dollar shortage always refers to USD rather than a country’s own currency. Since the U.S. dollar is the strongest global currency to date, other countries really care about how their own currency relates to the U.S. dollar.
A dollar shortage is when a country has a low supply of USD, making international trade more difficult for them. Without enough USD to trade with, countries have more limited trade options with their across-the-border trade friends.
This can happen if a country is a net importer...when they’re importing more than they’re exporting. That means they had some USD in the bank...but then they spent most of it, resulting in a shortage. To balance it, they need to also be exporting, which could replenish that supply of USD in the bank...er, in the country.
You get the picture: dead presidents.