Beijing has a powerful tool to respond to President-elect Donald Trump’s threatened new tariffs on Chinese goods: it could launch a currency war, a step that carries dire risks for both China and the United States — and certainly for the global economy. Depreciating the value of China’s currency, the yuan, against the dollar would …
Tag: currency war
Currency War: Why It’s Not Time to Short the Yuan?
As the “Trump trade” returns – again – fueling concerns of new geopolitical turmoil, hedge funds worldwide are scrambling to short the Chinese yuan. They are betting that Trump’s tax and trade policies, if elected, will strengthen the dollar, with China seeking a more competitive exchange rate as domestic growth slows. But if the last …
Currency War Intensifies – The Cheap Yuan and Why Secondary Sanctions Scared China
The battle that will not decide the outcome of the currency war – Why did China’s banks comply with the sanctions? With the threat of secondary sanctions keenly felt by Chinese banks, Washington appears to be temporarily winning a battle – but in an economic war it is decisively losing. The resilience of the Russian …
Russia gets Crypto Exchanges to Trade Digital Yuan – de-Dollarization as Ultimate Goal
Russia has announced plans to create two state-owned cryptocurrency exchanges aimed at making digital payments for international trade transactions. US sanctions have led Russia to seek alternative payment methods to keep its economy stable. The two cryptocurrency exchanges will operate in two different cities, one in Moscow and the other in St. Petersburg. Additionally, BRICS …
US vs. China: Bitcoin will become the new global reserve currency
In an era characterized by global economic instability and high political uncertainty, the idea of a new world order in the financial sector is gaining more and more ground. Now, there are questions about how this new world order will take shape. The dollar has long held this position, but its reign is increasingly being …
Currency War – The Implicit Replacement of the Petro-Dollar
The dollar as the currency of valuation for oil silently died last week, ushering in a new era in the global monetary status quo. On June 9, the US agreement with Saudi Arabia expired – What will be the consequences. Although it did not grab the headlines of the economic press, for obvious reasons the …
Russia has abandoned the dollar and is increasing its foreign exchange reserves in yuan
In a state of war economy, Russia has survived and is victorious in a currency war that was declared against it by the West. Urals oil exports in local currencies, mainly with China and India, as well as the failure of sanctions on Russian energy goods boosted the country’s foreign exchange reserves and prevented the …