Nicole Lapin

When oil prices rise, global demand for dollars can increase significantly.

just to transact but that system is now under serious pressure china is aggressively pushing yuan dominated oil contracts saudi arabia declined to formally renew the petrodollar agreement in 2024 the dollar itself has fallen roughly four percent over the last 12 months and the first half of 2025 saw the biggest single half decline in over 50 years

A weaker dollar means imported goods just cost more, inflation lingers, and your purchasing power quietly erodes.

That means if you have a European vacation to go on, let's say, your dollar is just not going to go as far.

As Lauren and I get into, the value of the dollar has actually been creeping up in recent weeks, but she has some thoughts on whether or not that trend is here to stay.

This, though, is a perfect example of contagion, one economic domino that causes all of them to fall.

Think Greece in 2010.

One country's debt crisis nearly took down the entire eurozone.

Right now, economists are watching something similar brew in emerging markets today.

Emerging markets like Pakistan and Egypt are net oil importers.

Their energy bills are exploding now as oil prices are spiking, and their government debt is largely dollar-denominated.

When their currencies weaken, which happens when the dollar strengthens or oil prices surge, that debt becomes harder to service.

If those countries default, U.S.

banks and institutional investors holding that debt take massive losses.

Then the IMF, let's say, steps in.

Markets get choppy and that turbulence finds its way into your portfolio.

That's the world Lauren and I were sitting in when we had this conversation.

So we get into it and what you can do not just to protect, but also to advance your portfolio.

Lauren Simmons, welcome to Money Rehab.

I'm so excited to have you.