The U.S. dollar rose broadly against major rivals on Tuesday after President-elect Donald Trump said he would sign an executive order imposing a 25% tariff on all products coming in to the United States from Mexico and Canada. The dollar rose over 2% against the Mexican peso and 1% against its Canadian counterpart. The dollar … Read more
The dollar’s dominance in financial markets won’t last forever, Paul Krugman said. But fears that the dollar will be replaced anytime soon are largely unfounded. According to the economist, there are no better alternatives to the US currency at the moment. The dollar’s status as the top global reserve currency isn’t going to last forever … Read more
What is currency internationalization? Internationalization means using a currency for cross-border transactions, including for purchase of goods, services or financial assets by non-residents. An international currency can be used by private players to settle trade or by governments to intervene in currency markets and financing balance of payments. It can also be used as a … Read more
Sanctions support — not weaken — dollar dominance, former Treasury official Dan Katz wrote. Countries willing to accept the risk of sanctions signal to investors that they are safe, he added. Despite increased use of sanctions, the dollar’s share of international transactions has grown since 2010. Arguments that US sanctions are a threat to the … Read more
US inflation has steadily cooled since mid-2022, thanks to large interest-rate increases by the Federal Reserve. However, a four-month drop in the dollar is threatening to derail that trend by raising the cost of imported goods. The dollar index has fallen by more than 11% from a peak reached in late September. US consumers are … Read more
Joint currencies tend to boost trade by getting rid of conversion costs and exchange rate uncertainty. Brazil and Argentina could later expand the initiative to neighboring countries, creating a euro-type currency for South America. Brazil and Argentina are preparing to launch a joint currency that could eventually become a euro-like project adopted by all of … Read more
Peter Thiel, one of Silicon Valley’s most prominent venture capitalists, suggested bitcoin could pose a threat to the US during a virtual seminar held by the Richard Nixon Foundation this week.”Even though I’m a pro-crypto, pro-bitcoin maximalist person, I do wonder whether at this point bitcoin should also be thought of in part as a … Read more