Bloomberg (February 2)
“The US president’s stance toward the greenback may help Xi Jinping realize his dream of making the yuan a global reserve currency.” At the top of President Xi’s wish “list is a ‘powerful currency’ with global-reserve status that punches its weight in international trade and foreign-exchange markets.” China now looks “well positioned to benefit from any long-term shift away from the dollar.” Despite Trump’s America First bluster, his “disruptive policies may be playing into the hands of rivals like China, who are only too eager to exploit US weakness wherever they see an opening.”
Tags: America first, Disruptive policies, Dollar, Exploit, Forex, Global reserve currency, Greenback, International trade, Powerful, President, U.S., Xi, Yuan
Wall Street Journal (January 28)
“President Trump this week said he thinks a weaker dollar is “great,” but he should be careful what he wishes for. Many politicians over the years have contemplated a weaker greenback as an economic miracle cure. They often discover that a weak dollar is a liability.”
Tags: Careful, Cure, Economic miracle, Greenback, Liability, Politicians, Trump, Weak dollar
Fortune (January 18)
“The greenback dropped while precious metals rallied Sunday as financial markets started reacting to President Donald Trump’s new tariff threats.” On Saturday, Trump announced 8 European allies would face “a 10% tariff starting on Feb. 1 that will rise to 25% on June 1, until a ‘Deal is reached for the Complete and Total purchase of Greenland.’” His latest threat revived smoldering fears centering on “U.S. debt and reserve currency status.”
Tags: 10%, 25%, Allies, Debt, Fears, Financial markets, Greenback, Greenland, Precious metals, Rallied, Reserve currency, Tariff, Threats, Trump
Reuters (May 29)
“The U.S. dollar’s unusual moves in April, when it fell in tandem with stocks, has cast doubt over a long-lasting relationship between the greenback and risky assets. Over time, it might nudge non-U.S. investors to hedge more or reduce their exposure to American stocks and bonds. Both could create a self-reinforcing downward cycle for the dollar.”
Tags: April, Bonds, Dollar, Doubt, Downward cycle, Exposure, Greenback, Hedge, Non-U.S. investors, Relationship, Risky assets. Over, Self-reinforcing, Stocks, Unusual moves
Fortune (May 24)
“Predictions that the dollar’s dominance will come to an end soon have proliferated since President Donald Trump launched his trade war,” but it’s not so simple. “Assets in other top economies like China, Japan and Europe still aren’t as attractive as those in the U.S.” while potential rivals also “suffer from governance or political headwinds.” Until another currency surmounts these issues, “global investors are faced with the familiar reality that there is still no alternative to the greenback, which has been the currency of choice for international payments and reserves for decades.”
Tags: Alternative, Assets, Attractive, China, Dollar, Dominance, Europe, Governance, Greenback, Headwinds, International payments, Investors, Japan, Political, Predictions, Rivals, Top economies, Trade war, Trump, U.S.
Reuters (October 25)
“Stablecoins, the latest innovation in digital currency, are a hybrid of the private and public models and claim to deliver the best of both their worlds.” Their users have roughly tripled in less than three years. “Stablecoins, it seems, give the people what they want: constant, real-time access to a globally usable, digital dollar.” As adoption grows, “the greenback’s supremacy” looks poised to be further reinforced.
Tags: Adoption, Digital currency, Digital dollar, Globally usable, Greenback, Hybrid, Innovation, Real time, Reinforced, Stablecoins, Supremacy, Tripled, Users
Equities News (March 28)
“The petrodollar was born” in 1975. When OPEC members exclusively adopted the dollar for pricing, it “had the immediate effect of strengthening the U.S. dollar,” with the greenback becoming “the world’s reserve currency, a status formerly enjoyed by the British pound, French franc and Dutch guilder.” Today, however, “we may be witnessing the end of the petrodollar as more and more countries, including China and Russia, are agreeing to make settlements in currencies other than the U.S. dollar. This could have wide-ranging implications on not just a macro scale but also investment portfolios.”
Tags: 1975, China, Currencies, Franc, Greenback, Guilder, Implications, Macro scale, OPEC, Petrodollar, Pound, Reserve currency, Russia, Settlements, Strengthening, U.S.
Wall Street Journal (January 7)
“As notable as the magnitude of the greenback’s rise has been its rapidity: 13% against the euro and some 15% against the yen since the end of June. Capital that had flowed into emerging markets since the world financial panic is now heading back to the land of the free,” boosting the economic strength of the U.S.”
Tags: Capital, Economic strength, Emerging markets, euro, Financial panic, Greenback, Magnitude, U.S., Yen
