You may not have noticed, but there’s a currency war going on worldwide at the moment.
With most countries in a desperate scrabble to make their currency cheap compared with others (and therefore their exports), whether you’re a winner or loser depends on which side of the see-saw you are sitting.
If you’re earning in a weak currency, paying an overseas mortgage or school fees or buying goods abroad, it is probably painful. But if yours is a strong currency then buying a house abroad or moving overseas is likely to look really attractive right now.
China’s yuan is a growing force in global finance, more than doubling in use over the past year, according to a new study from the Institute of International Finance Thursday.
Although its use in the international payments system remains dwarfed by the dollar and euro, the yuan, officially known as the renminbi, grew to 1.4 percent of total transactions.
I’ve already explained why meaningful trade and financial sanctions against Russia are a non starter – everyone would lose from such action. Europe would be pushed back into recession, Russia into financial meltdown. This is not the sort of self harm Europe is prepared to contemplate right now. Indeed, thanks to the indiscretion of a UK official, who was snapped going into Downing Street with his briefing documents on display for all the world to see, we know this to be the case. Trade and financial sanctions have already been ruled out.
MOSCOW — Predicting the imminent collapse of the U.S. dollar, a Russian lawmaker submitted a bill to his country’s parliament Wednesday that would ban the use or possession of the American currency. Mikhail Degtyarev, the lawmaker who proposed the bill, compared the dollar to a Ponzi scheme. He warned that the government would have to bail out Russians holding the U.S. currency if it collapses.