The Guardian (August 13)
“Forget doom-laden headlines, the dollar has not gone into terminal decline.” In fact, the dollar’s resiliency has been upheld even though “Donald Trump’s administration has done more than any in living memory to disrupt US trade” and has transformed the nation into an unreliable alliance partner. And yet, “the currency’s international role has not diminished significantly.” The simple truth is “there is no alternative. The euro is not an alternative…. Nor is the yuan a viable alternative.”
Tags: Alliance partner, Alternative, Currency, Decline, Diminished, Disrupt, Dollar, Doom, euro, Resiliency, Trade, Trump, U.S., Unreliable, Yuan
The Economist (January 18)
“America is weaponising its currency and financial system” like never before, but the “use of sanctions could endanger the dollar in the long term!” Other countries, both allies and enemies, increasingly view the Trump administration’s aggressive use of the dollar-based financial system “as an abuse of power.” Ultimately, this “may eventually lead to the demise of America’s financial hegemony, as other countries seek to dethrone its mighty currency.”
Tags: Abuse, Allies, Currency, Dollar, Enemies, Financial system, Hegemony, Sanctions, Trump, U.S., Weaponising
CBS News (May 13)
“The U.S. imports far more Chinese goods than China imports from the U.S. So China can’t directly impose retaliatory tariffs equal to Mr. Trump’s…. The U.S. just doesn’t send enough goods to China.” China could, however, let the yuan weaken and this may prove their best response. “If the Chinese currency were to drop in value, it would make the country’s goods less expensive in foreign markets, propping up export demand and volume abroad.”
Tags: China, Currency, Export demand, Imports, Retaliatory, Tariffs, Trump, U.S., Weaken, Yuan
Pound Sterling Live (February 15)
“The British Pound is under pressure ahead of the weekend, holding the title of the worst-performing major G10 currency over the course of the past five trading days. Losses come as the government suffered a symbolic defeat…with pro-Brexit MPs voting against a motion tabled by the government.”
Tags: Brexit, Currency, Defeat, G10, Government, Losses, Pound, Trading, UK, Worst-performing
Harvard Business Review (January 29)
“In the eyes of businesses, the UK has come to resemble an emerging market” with concerns about “political volatility, consistent market uncertainty, an unpredictable and fluctuating currency, and supply chain issues”…. Regardless of where the current Brexit talks lead, these issues plaguing the UK are likely to remain for years.”
Tags: Concerns, Currency, Emerging market, Market uncertainty, Political volatility, Supply chain, UK, Unpredictable
Reuters (November 20)
“The use of bitcoin for commercial payments has dropped dramatically this year, even as the original digital coin starts to fulfill one of the basic features of any payment currency: stability.” At this point, widespread use for payments looks like “a distant dream.”
Tags: Bitcoin, Commercial payments, Currency, Digital coin, Distant, Dropped, Features, Stability
Hidustan Times (August 30)
“Prime Minister Narendra Modi’s efforts to weed out black money through a ban on high-value currency notes haven’t yielded the desired results.” The Government estimated approximately one-third of the 15.4 trillion rupees in circulation on Nov. 8, 2016 “wouldn’t be returned to banks because it was stashed illegally to avoid tax.” In reality, 99.3% of the invalidated banknotes were returned. Only “107 billion rupees hasn’t yet been received by the Reserve Bank of India after the cash ban.”
Tags: Ban, Banknotes, Black money, Cash, Currency, Desired results, Government, Illegal, India, Modi, Rupee, Stashed, Tax
Reuters (August 29)
“The prospect of a no-deal Brexit is becoming increasingly feasible in the eyes of investors who are hedging against the risk of the currency tanking if Britain is left isolated from the EU, its largest trading partner.” Bank of America Merrill Lynch has warned that central bank selling of more than 100 billion pounds in reserves “could be a major catalyst for a significant sterling downturn” should the UK leave the EU without a deal.
Tags: BAML, Brexit, Central bank, Currency, EU, Hedging, Investors, No-deal, Reserves, Risk, Sterling, Trading partner, UK
Bloomberg (August 10)
“The slide in China’s currency paused this week after jawboning by the central bank,” but the rout may not be over. “The ripples of the yuan’s 4.7 percent drop this year may be just starting to spread to the country’s neighbors” such as Vietnam, where the “dong has been moving steadily closer to the edge of its 3 percent daily trading band against the dollar over the past two weeks, as traders bet on faster depreciation.” Moreover, Vietnam is only half caught up with the drop in China’s currency, “suggesting further depreciation is possible – particularly if the yuan resumes its decline.”
Tags: Central bank, China, Currency, Depreciation, Dong, Ripples, Rout, Slide, Trading band, Vietnam, Yuan
CNBC (May 29)
“Political uncertainty in Italy has unhinged world markets, raising the specter of a euro crisis that could ripple across the global economy and even force the Federal Reserve to slow its rate-hiking plans.” While odds appear low that Italy will opt out of the single currency bloc, “internal chaos and a new election could make for a rocky summer for markets and even put a dent in European economic growth.”
Tags: Chaos, Currency, Economy, Election, Euro crisis, Fed, Growth, Italy, Markets, Political uncertainty, Rate hike, Unhinged
