WASHINGTON (Reuters) - The dollar is facing the same fate as many travelers returning to the United States from China and other coronavirus hotspots.
The Federal Reserve (Fed, the US central bank) has begun to put into Quarantine physical dollars. However, the Fed is repatriating them from Asia before releasing them into the U.S. financial system. This is done as a precautionary measure against the spread of the virus, a Fed spokeswoman told Reuters news agency.
Dollars Stopped
She said the Fed’s regional banks that help manage the money supply will hold dollar remittances from Asia for seven to 10 days before processing and redistributing them to financial institutions. The measure was implemented on Feb. 21, the official said.
The outbreak originated in China and more than 100,000 people have been infected in more than 85 countries, according to a Reuters report based on statements from health ministries and government officials.
According to the U.S. Centers for Disease Control and Prevention (CDC), it “may be possible” to transmit the virus through objects that have come into direct contact with it. But person-to-person contact is the main way the disease spreads. The CDC recommends that U.S. residents returning from China and other high-risk countries stay home for 14 days.
The Brazilian stock exchange already fell on Monday 27th, the Ibovespa ended the day down 3.29%, at 114,481 points, this was the biggest fall in recent months.
The World Health Organization (WHO), however, has been much more cautious about the risks posed by banknotes, in short advising consumers to use contactless payments wherever possible, according to several UK media reports.