Envisioning the Mar-a-Lago Accord

THE so-called Mar-a-Lago Accord – a term coined by former Credit Suisse economist Zoltan Pozsar back in June 2024 – has recently drawn the attention of economic strategists and policymakers around the world.

Essentially, it is a proposed deal that envisages a concerted effort to weaken the US dollar, potentially as a way to reduce the US trade deficit and boost American manufacturing, which would amount to a reordering of the international monetary system.

It is often framed as a contemporary version of the Plaza Accord – a September 1985 agreement among finance ministers and central bank governors of the G5 countries (France, Germany, Japan, the UK and US) who met at the Plaza Hotel in New York City and jointly agreed on moves to depreciate the greenback.