2018-07-01 08:34:00 Sun ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Are China and Russia etc gonna dethrone the petrodollar? Over the years, China, Russia, France, Germany, and Japan have made numerous attempts to use their own reserve currencies as the primary monetary basis for futures in oil, silver, steel, aluminum, and other metals. De-dollarization helps non-U.S. companies anchor their use and consumption of natural resources to more reliable reserve currencies due to zero exposure to foreign exchange risk. Durable de-dollarization depends on a credible disinflationary monetary policy conduct and specific microeconomic measures. Not only does this strategy contribute to better financial risk mitigation, this strategy helps minimize any abrupt impact of greenback gyrations on domestic demand for oil, steel, and other natural resources. Often times de-dollarization can be conducive to promoting better open exchange rate flexibility, macroeconomic stabilization, inflation moderation, and financial crisis containment.
Should these countries and regions mute their exposure to dollar fluctuations over time, the greenback may become less than the gold standard of universal currency. Chinese, Russian, and Japanese companies can better acquire pivotal resources with minimal currency risk, whereas, de-dollarization remains an open challenge for France, Germany, and other European countries in the post-Brexit era.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-09-13 10:37:00 Friday ET

China allows its renminbi currency to slide below the key psychologically important threshold of 7-yuan per U.S. dollar. A currency dispute between the U.S.
2019-03-25 17:30:00 Monday ET

America seeks to advance the global energy dominance agenda by toppling Saudi Arabia as the top oil exporter by 2024. The International Energy Agency (IEA)
2017-01-23 09:30:00 Monday ET

There are several highlights from the first news conference after Trump's presidential election victory: The Trump administration will repeal-and-
2024-02-05 11:26:00 Monday ET

China poses new economic, technological, and military threats to the U.S. and many western allies. In the U.S. government assessment, China poses new eco
2018-10-27 09:34:00 Saturday ET

U.S. automobile and real estate sales decline despite higher consumer confidence and low unemployment as of October 2018. This slowdown arises from the curr
2020-02-02 10:31:00 Sunday ET

Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. We implement