China, Russia, France, Germany, and Japan may dethrone the petrodollar.

Jacob Miramar

2018-07-01 08:34:00 Sun ET

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.

Blog+More

Ivanka Trump softens her father's brash and combative image with a social agenda toward female empowerment.

Fiona Sydney

2017-06-09 06:37:00 Friday ET

Ivanka Trump softens her father's brash and combative image with a social agenda toward female empowerment.

To complement President Trump's pro-business economic policies such as low taxation, new infrastructure, greater job creation, and technological in

+See More

President Xi seeks Chinese congressional approval for abolishing his term limits of strongman rule with better trade deals and economic ties.

Jacob Miramar

2018-03-03 11:37:00 Saturday ET

President Xi seeks Chinese congressional approval for abolishing his term limits of strongman rule with better trade deals and economic ties.

President Xi seeks Chinese congressional approval and constitutional amendment for abolishing his term limits of strongman rule with more favorable trade de

+See More

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009.

Jonah Whanau

2023-08-14 09:25:00 Monday ET

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009.

Peter Isard analyzes the proper economic policy reforms and root causes of global financial crises of the 1990s and 2008-2009. Peter Isard (2005) &nbs

+See More

Income and wealth concentration follows the ebbs and flows of the business cycle in America.

Amy Hamilton

2019-04-23 19:45:00 Tuesday ET

Income and wealth concentration follows the ebbs and flows of the business cycle in America.

Income and wealth concentration follows the ebbs and flows of the business cycle in America. Economic inequality not only grows among people, but it also gr

+See More

Saudi Aramco aims to initiate its fresh IPO in December 2019.

Charlene Vos

2019-12-13 09:32:00 Friday ET

Saudi Aramco aims to initiate its fresh IPO in December 2019.

Saudi Aramco aims to initiate its fresh IPO in December 2019. Several investment banks indicate to the Saudi government that most investors may value the mi

+See More

Tech titans from Apple and Amazon to Microsoft and Google can benefit from the G.O.P. tax reform.

James Campbell

2017-12-07 08:31:00 Thursday ET

Tech titans from Apple and Amazon to Microsoft and Google can benefit from the G.O.P. tax reform.

Large multinational tech firms such as Facebook, Apple, Microsoft, Google, and Amazon can benefit much from the G.O.P. tax reform. A recent stock research r

+See More