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Here are some policy levers that could be implemented, some immediately, some would take a few months. I would not suggest they are explicitly presented as a counter to Trumps Tariffs. Just do it quietly. The US banks, Japan and China will work it out quickly and will follow the lead.
1. Regulators reclassify US Treasuries from zero to non-zero risk weight (10%)
2. Norway’s sovereign fund announces geographic reallocation review
3. ECB/BOE apply haircuts to US Treasuries as collateral
4. EIOPA raises capital charges for insurers’ unhedged dollar exposures.
5. Finance ministers issue joint guidance questioning USD concentration as prudent.
6. State-owned development banks and export credit agencies directed to reduce USD holdings.
7. Pension fund regulators update guidance on currency matching to liabilities.
8. Tax treatment adjusted to favour euro-denominated over dollar-denominated investments.
9. Public institutions directed to move assets from US to European custodians and asset managers.
10. Euro-denominated bond issuance subsidised or guaranteed to reduce corporate dollar funding needs.
It’ll take a few weeks for the effects to materialise but they surely will.