The dollar has been the world’s reserve currency since 1944. For most of a century, the dollar’s global dominance has helped the United States stand […] Source
New financial technologies are making it faster and cheaper to move money across borders, seemingly reducing the world's reliance on the dollar . - But new research presented at the Jackson Hole symposium suggests financial innovation may instead tighten the dollar's grip on global finance. - Financial innovation is the theme for the annual gathering of central bankers, where they're grappling with how these technologies reshape the financial system. Why it matters: Dollar dominance gives the U.S. enormous financial clout and helps keep demand for its debt strong. - If the paper is right, stablecoins and other forms of tokenized money could strengthen that position, even as concerns grow about America's fiscal health. What they're…
Eager to keep capital within its borders, China is restricting the ways individuals can engage with global markets.
State of the Union: Tehran has said that any deal to end the Iran War must include an end to the war “on all fronts,” including in Lebanon. The post Iran War Day 107: Israel Bombs Beirut, Imperiling U.S.–Iran Peace Deal appeared first on The American Conservative .
After Iran’s foreign minister said that a deal to end the Iran War had “never been closer,” Israel bombed Dahiyeh, Beirut on Sunday, the 107th day of the Iran War. The Islamic Republic has insisted that the ceasefire to the war includes Lebanon, where Israel has waged a military campaign, and some analysts say Israel’s escalations in Lebanon are designed in part to hamper U.S.–Iran diplomacy. Israel bombed an apartment building in Beirut’s southern suburbs, killing at least three people, according to local journalists in Lebanon. The attacks came after Hezbollah drones were launched across the border into northern Israel. After Israel attacked Beirut last weekend, Iran launched strikes against Israel. After Israel’s…Open
As the government has been devising plans to keep the dollar dominant, China has been making its own moves to increase global influence of the renminbi.
China’s bid to build a renminbi-based financial system beyond the U.S. dollar’s reach is gaining traction as a way to sidestep sanctions.
The last few years have exposed some of the fractures in a world currency system dominated by the U.S. dollar. China's leaders see an opportunity — but achieving it will likely prove easier said than done. The big picture: For all the gripes that nations around the world have about the United States' stewardship of the dollar, displacing the dollar would require China or any other potential rival to build infrastructure and make sacrifices that would be no easy feat. - For China, it would mean relaxing its strict controls on the flow of capital into and out of the country, an important tool of state power — and a contrast to the U.S., where dollars flow more freely. Driving the news: Published remarks by Chinese President Xi Jinping…
AI:Chinese President Xi Jinping is aggressively pushing for the renminbi to achieve global reserve currency status, as highlighted in recent ideological writings in Qiushi magazine. While Beijing aims to challenge U.S. dollar dominance to mitigate the impact of American sanctions used against adversaries like Iran and Russia, significant structural hurdles remain. Unlike the free-flowing U.S. financial system, China’s reliance on strict capital controls and its lack of transparent institutional frameworks prevent the renminbi from serving as a true alternative to U.S. Treasuries. Despite efforts to facilitate direct trade between emerging markets like India and China without using dollars, global investors continue to favor the stability…Open