👉 Dollar engineering refers to the practice of manipulating financial instruments and markets to influence the value of a currency or asset, primarily through interest rate adjustments and monetary policy changes. Central banks, like the Federal Reserve in the United States, use dollar engineering to control inflation, stimulate economic growth, or stabilize financial markets by altering the cost of borrowing and the yield on government bonds. For instance, lowering interest rates makes borrowing cheaper, boosting spending and investment, while raising rates can curb inflation by making loans more expensive. This strategy directly impacts the dollar's value relative to other currencies, affecting international trade, capital flows, and global financial stability. By carefully adjusting these rates, central banks aim to achieve macroeconomic objectives while managing market expectations and maintaining economic equilibrium.
