WASHINGTON: Large and growing US budget and current account deficits raise the risk of an abrupt drop in the value of the greenback, which could hit US and global economic growth, the International Monetary Fund (IMF) said.
Although the dollars adjustment could occur gradually over an extended period, the possible global risk of a disorderly exchange rate adjustment, especially to financial markets, cannot be ignored, the fund warned in a new report on Washingtons fiscal stance.