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Marshall Islands on mission to create its own cryptocurrency to reduce reliance on US dollar

An isolated island nation in the Pacific Ocean with a population of about 75,000 is on a mission to create a blockchain-based national currency, the Marshallese sovereign or SOV, the country said in a statement.David Paul, the environment minister and minister-in-help to the president of the Republic of the Marshall Islands, spoke about the venture at a conference in Singapore on Wednesday.“With the blockchain technology in place, we thought this was an opportune time to establish our own legal… Source link

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China and Russia to edge closer to reducing US dollar reliance with Moscow set to launch first yuan bond

Moves by China and Russia to reduce reliance on the US dollar are set to continue at the end this year or early next year with the Ministry of Finance in Moscow likely to launch its first yuan-denominated bond.Moscow is hoping a yuan bond will lift interest by Chinese investors in Russian assets and it would also help to create benchmarks for the setting up of hedging options for roubles and yuan, sidestepping the use of the US dollar. “Currently, several banks led by Gazprombank and [China… Source link

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How gold has become a hedge against a ‘weaponised’ US dollar for countries like China, Russia and others

The chaos of the US-China trade war has left markets reeling as tariffs and Trumpian tweet storms beat down valuations and open the door to a recession.  The yuan/US dollar relationship spiked to 7.16 on September 2. Central banks in the US, Thailand, India and New Zealand have cut their rates in expectation of further fallout, and analysts in Hong Kong have wrung their hands over concerns of capital flight – a risk exacerbated by the ongoing local political uncertainty. In the midst of this… Source link

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A strong US dollar worries Trump, but it’s no use blaming the Fed or China

US President Donald Trump’s unease at the strength of the US dollar is no secret. There has been some talk that Washington might physically intervene on the currency markets to weaken the greenback. Yet, how could that succeed when it is Trump’s own policies, including towards China, that are fuelling the very US dollar strength that Trump dislikes? Additionally, intervening on the foreign exchanges, to weaken the greenback, would not come with a guarantee of success or necessarily garner… Source link

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The Hong Kong dollar, which George Soros failed to break in 1998, is tempting hedge funds again. Will they succeed this time?

Crispin Odey has some advice for the traders ramping up wagers against Hong Kong’s currency: try something else.“There are lots of good bets around at the moment,” said Odey, whose penchant for bold trades has made his hedge fund one of the world’s most volatile in recent years. “Hong Kong dollar is not there.”The 60-year-old Briton knows a thing or two about the currency, having bet against it for more than two years before finally giving up in mid-2018. He’s not alone: George Soros tried and… Source link

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China’s currency is poised for its worst month on record after weakening beyond the barrier of 7 yuan per US dollar

China’s yuan is headed for a record monthly plunge as an intensifying trade war with the US damages investor confidence.The currency has plummeted 3.9 per cent this month, the biggest loss since January 1994, when the modern exchange rate regime was adopted. The slump past the 7 level for the first time since the financial crisis comes as US-China trade tensions escalate. Fresh signs of a slowing economy and bets on further monetary easing have also helped fuel the retreat.Without any clear… Source link

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Hong Kong’s US dollar peg could be a weak link if protests continue to drag, China scholar warns

The 36-year-old peg between the Hong Kong and US dollars, a major pillar of financial investor confidence in the city, could turn into a weak link if financial markets were to turn sour, causing a “double hit” to the city’s economy, a Chinese scholar has warned.Hong Kong’s unique linked exchange rate regime has helped the city maintain economic prosperity over the past decades, said Zhou Luohua, vice-president of the Chongyang Finance Research Institute at the Renmin University of China.But, he… Source link

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China’s yuan weakens below 7 to the US dollar as Donald Trump’s tariff threat weighs heavy

China’s yuan exchange rate weakened below the psychologically important level of 7 to the US dollar in both onshore and offshore markets on Monday, with the country’s central bank saying the drop was caused by “expectations of more tariffs on China”.It is the first time that the yuan has dropped below the level since offshore trading started in Hong Kong in 2010, and the lowest in the onshore market since April 2008, signalling the possibility of a currency war with the United States.The drop… Source link

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Why China may be ready for a strong yuan, and the US could follow up with a weak dollar policy

The yuan could be on the rise. Although renminbi weakness against the dollar has been a feature of the ongoing trade war between China and the United States, circumstances do change. Currently, it might suit Beijing to create conditions that favour yuan appreciation as a way of silencing US Donald Trump’s unsubstantiated assertions that China has a tendency to manipulate its currency to gain economic advantages. After all, Washington only seems to cry currency manipulation when the renminbi… Source link

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China has ‘price to pay’ for cutting US dollar share of forex reserves, analysts say

China’s sharp reduction in US dollar asset holdings has increased the risk of its investment portfolio, analysts have said in response to a disclosure of historical data by the agency charged with managing its foreign exchange reserves.The State Administration of Foreign Exchange (Safe) on Sunday disclosed that it had cut the portion of US dollar-denominated assets in its reserves portfolio to 58 per cent in 2014, below the international average of 65 per cent and down sharply from the 79 per… Source link

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