George Saravelos

“We have not boarded the dollar bullish train this year because global growth has been resilient, geopolitical developments pose continuous challenges to dollar dominance and the Fed has been ambivalent on its reaction function to inflation,”

George Saravelos · said date not stated · reported 2026-08-19

Saravelos explained why Deutsche Bank has not been bullish on the dollar this year.

“When a foreign government posts treasuries as collateral for cash the Fed prints dollars,”

George Saravelos · said date not stated · reported 2026-08-19

Saravelos described how the Fed's FIMA repo facility effectively creates dollars when foreign governments post Treasuries as collateral.

“If the Fed was to sharply increase the size of the FIMA facility in line with the U.S. administration request, we would consider it as an indirect way of Fed monetary financing of UST and an additional dollar negative.”

George Saravelos · said date not stated · reported 2026-08-19

Saravelos said an expansion of the FIMA facility in line with the U.S. administration's request would amount to indirect Fed monetary financing and be dollar-negative.