MIGHTY DOLLAR AND FUTURE DEBT TRAPS: The COVID-19 crisis is proving that there is no global currency that has the market reach of the US dollar as the favourite of international borrowers. Overseas borrowers have flocked to the dollar this year at a record pace with borrowers racking up debt sales of $1.29 trillion. The ease of borrowing comes from the market confidence in the dollar, the limited status of euro as a reserve currency and the yuan still remaining under capital controls. The dollar debts also comes with some inherent risks of currency appreciation that will drive up debt-servicing costs, debt burden and ultimately debt traps, down the road for emerging economies. [COMMENT BY: Babu Das Augustine, Business Editor]
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