By CultureBanx Team
- The U.S. dollar’s strength continues as it has gained 5% since mid-July
- A strong U.S. dollar can lead to lower interest rates, which can benefit the Black community by making borrowing more affordable
The U.S. dollar has been on a major eight week win course, and the American job market is doing well. Unemployment in the Black community now stands at 5.3% and with the U.S. dollar’s strength, which has gained 5% since mid-July, there are potential benefits for this community which can make it easier for families to make ends meet.
Why This Matters: When the U.S. dollar is strong, it generally has greater purchasing power in global markets. This can benefit the Black community by potentially leading to lower prices for imported goods and services, including consumer goods, electronics, and energy. Lower prices can improve the standard of living and reduce the cost of essential goods.
Specifically, the U.S. dollar has been enjoying an unprecedented run against a group of major currencies, the longest seen since the winter of 2014-2015. In some cases, a strong U.S. dollar can lead to lower interest rates, which can benefit the Black community by making borrowing more affordable. This can be especially important for financing education, buying a home, or starting a business.
Even though the U.S. dollar is enjoying its longest winning streak in nearly nine years, other countries’ currencies are struggling. For example, the euro has lost 4.4% of its value to trade at $1.07, and the Chinese yuan is down 2.6% since mid-July, to hit its lowest level against the dollar in more than a decade and half.
Situational Awareness: It’s important to note that the Black community has historically faced higher levels of unemployment compared to the white population, and these disparities can persist even during periods of lower overall unemployment. Structural factors, discrimination, and disparities in access to education and job opportunities can contribute to these disparities. While these economic indicators are promising, they are just one piece of a much larger puzzle.
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