Previously, S&P Global and Fitch lowered the US sovereign credit rating in 2011 and 2023 respectively. Moody's announcement also means that the United States has lost its last highest credit rating. Xie Yanzhen attended the Qatar Economic Fo...
Previously, S&P Global and Fitch lowered the US sovereign credit rating in 2011 and 2023 respectively. Moody's announcement also means that the United States has lost its last highest credit rating.
Xie Yanzhen attended the Qatar Economic Forum on Tuesday (May 20) and said: "They (dollar assets) are the main and secure assets in the financial system and are an inseparable part of the financial system.
"The US$28 trillion Treasury market is the basis of the global financial system, and it is also a systematic market. There is no other choice about this."
The US sovereign credit rating was downgraded. Director of the Monetary Authority of Singapore Xie Zhen believes that US dollar assets have lasting advantages and are almost irreplaceable in the global financial system.
Xie Yanzhen believes that the market may fluctuate in the near future, but he is optimistic about the prospect of relatively stable US dollar assets.
Moody’s announced last Friday (16th) that it would lower the U.S. sovereign credit rating from the highest "Aaa" to "Aa1", citing the increasing fiscal deficit in the United States and the heavy federal debt burden.
He also pointed out that Asian investors generally have too much exposure to US assets. "In fact, most of them are not hedged, so some changes in market sentiment and interpretation of market direction may cause a great response."
