Thursday, August 17, 2017

Tag: Exchange

China’s Army of Global Homebuyers Is Suddenly Short on Cash

China's escalating crackdown on capital outflows is sending shudders through property markets around the world. In London, Chinese citizens who clamored to purchase flats at the city’s tallest apartment tower three months ago are now struggling to transfer their down payments. In Silicon Valley, Keller Williams Realty says inquiries from...

China Considers Options to Back Yuan, Curb Outflows

China has studied possible scenarios for the yuan and capital outflows this year and is preparing contingency plans, according to people familiar with the matter. The offshore yuan surged the most in a year. The authorities have used stress tests, models and field research, said the people who asked not...

Can Russia Learn From Brazil’s Fate?

William Engdahl recently explained how Washington used the corrupt Brazilian elite, which answers to Washington, to remove the duly elected President of Brazil, Dilma Rousseff, for representing the Brazilian people rather than the interests of Washington. Unable to see through the propaganda of unproven charges, Brazilians acquiesced in the...

A Weaker Currency Is No Longer Economic Elixir It Once Was

A weaker currency, once the cure-all for ailing economies around the world, isn’t the panacea it once was. Just look at Japan, where the yen plunged 28 percent in the two years through 2014, yet net exports to America still fell by 10 percent. Or at the U.K., where the...

China facing full-blown banking crisis, world’s top financial watchdog warns

China has failed to curb excesses in its credit system and faces mounting risks of a full-blown banking crisis, according to early warning indicators released by the world’s top financial watchdog. A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese...

Iran’s central bank won’t bite off more than it can chew

TEHRAN, Iran — Most economists and monetary policymakers in Iran have been supportive of getting rid of the country’s dual foreign exchange rate system by as soon as March 20, 2017, when the current Iranian fiscal year comes to an end. However, there appears to be a gulf between...

Will Russia Reject Neoliberalism?

According to various reports, the Russian government is reconsidering the neoliberal policy that has served Russia so badly since the collapse of the Soviet Union. If Russia had adopted an intelligent economic policy, its economy would be far ahead of where it stands today. It would have avoided most...

The problem with Europe is the euro

In this extract from his new book, the Nobel prize-winning economist argues that if the euro is not radically rethought, Europe could be condemned to decades of broken dreams. Europe, the source of the Enlightenment, the birthplace of modern science, is in crisis. This part of the world, which hosted...

What will $12 billion IMF loan cost Egypt?

CAIRO — On July 28, Egyptian Finance Minister Amr El Garhy announced that Egypt would seek a $21 billion loan package to fill the budget’s financing gap. Of this amount, $12 billion would be in the form of a loan from the International Monetary Fund — Egypt is in the...

China to stick to stable yuan against currency basket, says central bank chief

Zhou Xiaochuan underscores Beijing’s ongoing commitment to keeping currency's value steady. The value of the yuan would remain stable against a basket of currencies, central bank chief Zhou Xiaochuan said on Sunday on the sidelines of the G20 meeting of finance ministers and central bankers in Chengdu. Speaking to the South...

Brexit Accelerates the British Pound’s 100 Years of Debasement

In 1967, U.K. Prime Minister Harold Wilson declared devaluation wouldn’t diminish the “pound in your pocket.” Chancellor of the Exchequer Norman Lamont admitted he was heard “singing in the bath” after sterling’s link to the deutsche mark was severed in 1992, sending the currency tumbling. If history is any guide,...

China’s exports tumble again in May as global demand stays weak

May's soggy Chinese trade data offered the latest sign that the world's second-largest economy was still a long way off from full health. Exports in dollar-denominated terms tanked 4.1 percent on-year, more than double April's 1.8 percent fall and slightly worse than estimates for a 3.6 percent decline, Reuters said...

U.S. to Press China to Curb Industrial Output

BEIJING — The Obama administration plans to use annual talks with leaders in Beijing to push for cuts in excess Chinese industrial output, which has inundated foreign markets with discounted steel, aluminum and other products, Treasury Secretary Jacob J. Lew said in Beijing on Sunday ahead of the meeting. The...
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An Overview of the Economic Outlook and Monetary Policy of the United States

Description Lael Brainard, a member of the Board of Governors of the Federal Reserve, discusses the current economic outlook of the United States and the monetary policies of the U.S. Federal Reserve. Brainard reflects on the challenges the U.S. economy faces with a potential interest rate rise on the horizon....

Revealed: Saudi Arabia owns $117 billion of U.S. debt

One of the biggest mysteries in global finance was just revealed: How much U.S. debt Saudi Arabia owns. Saudi Arabia stockpiled $116.8 billion of U.S. Treasuries as of March, the Treasury Department announced on Monday, ending four decades of keeping the figure secret. That makes Saudi Arabia the 13th largest foreign...

U.S. Discloses Saudi Holdings of Treasuries for First Time

The Treasury Department released a breakdown of Saudi Arabia's holdings of U.S. debt, after keeping the figures secret for more than four decades. The stockpile of the world’s biggest oil exporter stood at $116.8 billion as of March, down almost 6 percent from a record in January, according to data...

Why being the king of currencies has its pitfalls

The world is getting an object lesson on the problems of having one dominant global currency and even the supposed prime beneficiary, the United States, can see the downside. Alarming bouts of volatility in world financial markets over the past 12 months have been rooted in a fear of what...

Key Gold Index Doubles In 2016

Gold investors learn early that one of the best ways to leverage their exposure is to buy gold stocks. That strategy has performed well recently. As of Friday, the NYSE ARCA Gold Bugs Index, which trades under the symbol HUI, had nearly doubled since its January low. The index...

Putin’s Decade-Old Dream Realized as Russia to Price Its Own Oil

Russian President Vladimir Putin is on the verge of realizing a decade-old dream: Russian oil priced in Russia. The nation’s largest commodity exchange, whose chairman is Putin ally Igor Sechin, is courting international oil traders to join its emerging futures market. The goal is to increase revenue from Urals crude...

Soros Says China’s Economy Looks Like the U.S. Before the Crisis

Billionaire investor George Soros said China’s debt-fueled economy resembles the U.S. in 2007-08, before credit markets seized up and spurred a global recession. China’s March credit-growth figures should be viewed as a warning sign, Soros said at an Asia Society event in New York on Wednesday. The broadest measure of...

China’s obsession with IMF’s accounting unit and forging new global financial order reaches new...

Beijing is reviving efforts to broaden use of Special Drawing Rights to achieve longstanding strategic aim of dethroning US dollar in international monetary system. It is just one line in a foreign exchange document, but it signals a renewed seriousness. Last week, China's central bank started publishing the nation’s foreign exchange...
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Special Drawing Right (SDR)

The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to members. SDRs can be exchanged for freely usable currencies. The value...

Gold Rush by Russia Makes Up for Billions Lost in Currency Rout

Here’s why Governor Elvira Nabiullina is in no haste to resume foreign-currency purchases after an eight-month pause: gold's biggest quarterly surge since 1986 has all but erased losses the Bank of Russia suffered by mounting a rescue of the ruble more than a year ago. While the ruble’s 9 percent...

Jim Rickards: The U.S. Dollar Is A Shadow Gold Currency – The New Case...

Get ready to dispose of your preconceived notions regarding the Federal Reserve and its take on gold! Is it possible that the Fed wants a higher gold price after all? That is what Jim Rickards reveals in this riveting interview with Palisade Radio. Upon quick review, the Federal Reserve today...

Chinese Central Bank Vows to Expand Use of IMF Reserve Currencies

The Chinese yuan was included in the IMF's elite basket of reserve currencies last year. BEIJING—China’s central bank Governor Zhou Xiaochuan said the government will make efforts to expand the use of the International Monetary Fund’s basket of reserve currencies in its domestic economy. Mr. Zhou said China will use both...

Foreign governments dump U.S. debt at record rate

Foreign governments are dumping U.S. debt like never before. In a bid to raise cash, foreign central banks and government institutions sold $57.2 billion of U.S. Treasury debt and other notes in January, according to figures released on Tuesday. That is up from $48 billion in December and the highest...

Next Financial Crisis Could Overwhelm World’s Defenses, IMF Says

The global financial safety net has become increasingly fragmented, making it harder to respond to crises in a world roiled by volatile capital flows, International Monetary Fund staffers warned. Defenses haven’t kept up with the growth of external debt in recent years, the Washington-based fund said in a report released...

ECB splurge sets off new currency war

Investors are paying a great deal more attention to the machinations being played out in foreign exchange markets, particularly after turbulence this week saw the Australian dollar surge above US75¢ while its New Zealand counterpart tumbled. Traders have turned decidedly bullish on the Aussie dollar, which has risen 10 per...

ECB can only buy time, not solve eurozone growth woes

Mario Draghi’s efforts will count for little without structural reforms and more aggressive use of fiscal policy by European governments. For most of its short life, the European Central Bank fretted about inflation being too high. Now it has the opposite concern. The fear of deflation explains the package of measures...

We just got another massive sign of how badly Saudi Arabia is suffering from...

Saudi Arabia, whose economy has taken a beating in recent months thanks to the crash in oil prices, just got another terrible piece of news. On Monday, HSBC economists Simon Williams and Razan Nasser dropped a note on the country's foreign-exchange holdings, and things look pretty dire for the oil-reliant...

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