IATA vice president: US dollar losing safe haven status

The US dollar is no longer the "safe haven" it was considered for many years, IATA Senior Vice President for Sustainability and Chief Economist Marie Owens Thomsen said at a press conference during the 82nd IATA Annual General Meeting and the World Air Transport Summit (WATS), according to a Report correspondent from Rio de Janeiro.

"We do have some reason for optimism. This stems from the fact that the US dollar no longer plays the role of the unconditional 'safe haven' it once did. Historically, no matter what shocks the world has faced-even those originating in the United States itself-the dollar has almost always outperformed. During periods of uncertainty, investors preferred to hold funds in dollars rather than other currencies," Thomsen said.

According to her, this pattern is no longer evident to the same extent.

"This is good news for countries whose currencies have strengthened against the dollar. Most airlines pay for fuel in dollars, so a stronger national currency reduces the cost of these expenses in local terms.

Of course, this situation is not typical for all countries. Many countries' currencies, on the contrary, have weakened against the dollar. In this case, the economy faces a double whammy: rising global oil prices, while dollar-denominated imports also become more expensive.

Nevertheless, overall, a weaker dollar is a positive factor for the global economy, and therefore for the aviation industry," added the IATA senior vice president.