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

MIT financial economist Simon Johnson rethinks capitalism with better key market incentives.

Daisy Harvey

2019-11-23 08:33:00 Saturday ET

MIT financial economist Simon Johnson rethinks capitalism with better key market incentives.

MIT financial economist Simon Johnson rethinks capitalism with better key market incentives. Johnson refers to the recent Business Roundtable CEO statement

+See More

U.S. regulatory agencies may consider broader economic issues in their antitrust probe into Amazon, Apple, Facebook, and Google.

Joseph Corr

2019-07-03 11:35:00 Wednesday ET

U.S. regulatory agencies may consider broader economic issues in their antitrust probe into Amazon, Apple, Facebook, and Google.

U.S. regulatory agencies may consider broader economic issues in their antitrust probe into tech titans such as Amazon, Apple, Facebook, and Google etc. Hou

+See More

Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations.

Monica McNeil

2019-08-12 07:30:00 Monday ET

Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations.

Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations. The Federal Trade Commission (F

+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

The great reversal of antitrust merger review in America

Monica McNeil

2023-10-07 10:24:00 Saturday ET

The great reversal of antitrust merger review in America

Thomas Philippon draws attention to greater antitrust scrutiny in light of the rise of market power and its economic ripple effects. Thomas Philippon (20

+See More

Apple is now the world's biggest dividend payer with its $13 billion dividend payout.

Dan Rochefort

2017-04-19 17:37:00 Wednesday ET

Apple is now the world's biggest dividend payer with its $13 billion dividend payout.

Apple is now the world's biggest dividend payer with its $13 billion dividend payout and surpasses ExxonMobil's dividend payout record. Despite the

+See More