Dollar and Exports

The strength of the US dollar has attributes of a barometer of dollar credit conditions, whereby a stronger dollar is associated with tighter dollar credit conditions. Using finely disaggregated data on export shipments, we examine how dollar strength impacts exports through the lens of dollar financing availability. We find that exporters who are reliant on dollar-funded bank credit suffer a decline in exports due to increased funding costs. We argue that the US dollar is a global financial factor with real effects on the economy