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Tag Archives: Currency War

What Could Knock the US Dollar Down as Top Global Reserve Currency?

Waiting for the “Death of the Dollar” or the end of “Dollar Hegemony?” Further patience is required. But the Chinese yuan is not so popular. What will finally pull the rug out from under the dollar’s hegemony? The euro? The Chinese yuan? Cryptocurrencies? The Greek drachma? Whatever it will be, and however fervently the death-of-the-dollar folks might wish for it, it’s not happening at the moment, according to the most recent data. The IMF just released its report, Currency Composition...

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“Next Bitcoin” Ripple Does $126-Bn Round Trip in 15 Weeks

The crypto-crash crushes hopes, but will it impact the economy? The price of cryptocurrency Ripple had been languishing for months at around $0.20 back in 2017, giving it an already astonishing market capitalization of around $8 billion. But on December 11, it took off. In the morning of December 14, the price blew through $0.574, and the market cap passed $22.5 billion on the way to a quadrillion. A serious gain, but peanuts compared to what came next. Crypto billionaires were being...

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Even the World’s Most Cashless Nation Doesn’t Want to Go Fully Cashless

It’s too risky and systematically excludes the most vulnerable people. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. There are small but growing signs that Europe’s “War on Cash” is not going exactly according to plan. First, a number of central bankers began voicing concerns about its potential ramifications. Now, even in Sweden, the first European country to enlist its own citizens as largely willing guinea pigs in an economic experiment — negative interest rates...

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Cash Refuses to Die, But the €500-Note Is a Goner

War-on-Cash Backlash. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. “You got to be kidding, we can’t take that,” says the shop assistant as a man places a €500 bill in front of her for a €10 purchase. A waiter at a Michelin-star restaurant gives a similar response despite the fact that the total bill for the meal came to well over €100. Beginning to despair, the man then tries to pay part of his rent with the €500 note — something he has done several times before —...

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“Cash Must Not Be Made the Scapegoat”

In the War on Cash, a rare defense of physical money by an ECB Board Member. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. The proposed EU-wide cash restrictions could come into effect as early as this year. But defenders of physical cash have an unexpected ally in their struggle: Yves Mersch, a member of the European Central Bank’s executive board. In a speech hosted by the Bundesbank last week, the Luxembourgian central banker exalted cash’s value as legal tender...

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The Dollar Spirals Down, Hits Lowest Point Since 2014

What will the Fed do? The US dollar has dropped 2.0% in the past five days, 2.4% over the past month, 4.1% year-to-date, 5.3% over the past three months, and 9.4 % over the past 12 months, according to the WSJ Dollar Index. At 82.47, the index is at the lowest level since December 25, 2014: The index weighs the US dollar against a basket of 16 other currencies that account for about 80% of the global currency trading volume: Euro, Japanese Yen, Chinese Yuan, British Pound, Canadian...

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Crypto Collapse Crushes Hedge Funds that Touted Huge Gains for 2017

Are they causing the rout by trying to get large sums out of an illiquid market? At the moment, cryptocurrencies and tokens are bouncing up and down in wild, double-digit gyrations by the hour. Bitcoin plunged below $9,300 and as I’m writing this is trading at around $9,800, down about 50% from its peak on December 17. Gone up in smoke in one month: $168 billion. Ripple, the crypto that has recently been touted as the “next bitcoin” or “better than bitcoin,” plunged to $0.88 and is...

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The Falling Dollar and China’s Foreign Exchange Reserves

Stiffened capital controls help. The weak dollar, China’s complex web of capital controls, and its efforts to crack down on its huge and over-leveraged conglomerates to invest overseas are having an impact: China’s foreign exchange reserves – the largest such pile of foreign-currency-denominated securities in the world – rose by $21 billion in December to finish the year at $3.14 trillion, according to the People’s Bank of China today. It was the highest level since September 2016 and...

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Wolf Street Changes Name to Wolf Blockchain, Shares Soar 2,000%, Company & Founder Sell 10 Million Shares

I’m just kidding, but others are not, and people are falling for it. I’m just kidding, I didn’t rename my WOLF STREET media mogul empire “Wolf Blockchain,” and since I’m the only stockholder, what surge the stock undertook since the imaginary renaming went unnoticed, and I didn’t sell any shares either – but others are not kidding, and people are falling for it. Today, a company that sells ready-to-drink soft drinks, Long Island Iced Tea Corp, but had changed its name on December 21 to...

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US Dollar Refuses to Die as Top Global Reserve Currency

Central banks are leery of the newly arrived Chinese yuan. Over the decades, there have been a number of efforts to deflate the dollar’s hegemony as a global reserve currency, which it has maintained since World War II. Some of these efforts – such as the creation of the euro – have made a visible dent into the dollar’s status. Other efforts have essentially passed unnoticed. Now there’s a new contender: the Chinese yuan. On December 31, the IMF released its report on the Currency...

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