• Fitch on U.S Border adjustment tax proposal: believes U.S Dollar would "appreciate markedly" if reform proposals become law

Market news

29 March 2017

Fitch on U.S Border adjustment tax proposal: believes U.S Dollar would "appreciate markedly" if reform proposals become law

  • Proposed introduction of bat could raise burden of U.S dollar-denominated debt in ems, precipitate strains on U.S dollar-linked exchange rate regimes

  • Proposed introduction of bat could worsen current account balances and gdp growth for major exporters to U.S, reduce FDI inflows

  • Would lead to loss in row corporate tax revenues, owing to lower company profits from exports to U.S

  • U.S border adjustment tax poses risks to global sovereigns


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