October 23, 2025· 46 min

Why The World Started Hedging Its US Dollar Exposure

Hyun Song Shin

Orality

Model

63%

Mixed oral/literate (blogs, casual essays)

Speaker Breakdown

HostJoe Weisenthal(1,973 words)

M:94%

HostTracy Alloway(1,395 words)

M:94%

GuestHyun Song Shin(4,684 words)

M:28%

Oral Indicators

Agonistic55%

literally, completely, huge

Engagement82%

you, our, your

Memory Aids100%

listen, now, like

Repetition100%

know (215x), it's (69x), like (63x)

Parallelism88%

And I'm Joe Weisenthal...., So we had Liberation Day and t..., And we're recording this, let'...

Sound Patterns53%

51 question(s), alliteration: "markets move", alliteration: "barclays brief"

Formulaic Phrases4%

you know what, i mean

Literate Indicators

Hedging9%

may, could, might

Passive Voice6%

are then, is hedged, being taken

Abstract Nouns16%

investment, recommendation, community

Subordination10%

although, however, while

Sentence Length37%

Avg: 14.1 words/sentence

Word Complexity47%

investment, analyze, anticipate

Academic Markers0%

Impersonal Style18%

794 personal pronouns found

Descriptive Style100%

literally, completely, apply

Description

Some economists expected that the dollar would strengthen when the tariffs were imposed. Instead, the opposite happened. The dollar fell sharply and it's been a poor performer all year. Concurrently, it's been a great year for a lot of dollar-denominated assets, like stocks. Even US Treasuries have rallied this year. So what's going on? On this episode, we speak with recurring Odd Lots guest Hyun Song Shin, Economic Adviser and Head of the Monetary and Economic Department at the Bank for International Settlements. Per his work, the world didn't abandon the US dollar, but it did start hedging exposure to it. We discuss this phenomenon, as well as other risks on the macro landscape. Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

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