‘Liberation Day’ triggered demand for dollar-backed stablecoins
Researchers find effect was stronger in countries subject to higher US tariffs
The announcement of US tariffs on April 2 spurred demand for dollar-backed stablecoins, according to research from the Federal Reserve Bank of Cleveland.
The working paper, published on August 28, hypothesises that foreign investors sought to acquire dollars immediately after ‘Liberation Day’ in anticipation of the tariffs being imposed on April 9.
Peter Zimmerman, a research economist at the Cleveland Fed and one of the paper’s co-authors, tells Central Banking that when dollars are unavailable
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