Puerto Rico Economic Pulse ©

May 2008: The Fall of the Greenback

What the fall of the US dollar implies for Puerto Rico

The almighty US dollar is indeed afflicted.  The American currency has lost ground against other strong currencies such as the euro, the sterling pound, the Canadian dollar, and even the Mexican peso. The woes of the dollar mirror the staggering situation of the US economy.  Formerly worshipped by the whole world, the dollar is now snubbed by governments, investors, and bankers. Underpinned by foreign capital inflows, those flows are not now enough to keep the dollar afloat. This issue addresses the reasons behind the fall of the US dollar and how the slide of the US currency has impacted the Puerto Rican economy.