FX Reserves

This tag is associated with 28 posts

Petrodollar Pain: Is The Saudi Royal Family Preparing For Exile?

Members of the Saudi royal family appear to be preparing to go into exile as they are selling as much oil as possible in order to move their petrodollars out of the country. The declining oil price doesn’t matter. Clear signals are coming from the U.S. that the days of the incumbent clans are numbered. In … Continue reading

Taking The Petro Out Of The Dollar

By Alasdair Macleod Saudi Arabia has been in the news recently for several interconnected reasons. Underlying it all is a spendthrift country that is rapidly becoming insolvent. While the House of Saud remains strongly resistant to change, a mixture of reality and power-play is likely to dominate domestic politics in the coming years, following the ascendancy … Continue reading

More Troubles May Lie Ahead For Nigeria As MSCI Weighs Removal From Index

More troubles may lie ahead for Nigeria, Africa’s largest economy, as global equity index provider MSCI is considering dropping the nation from its benchmark Frontier Markets Index, which could put $500 million of equity investment under threat. On Thursday MSCI announced that it’s considering removing the country from its Frontier Markets Index, blaming currency restrictions imposed by … Continue reading

Asia And The Next Financial Crisis

By East Asia Forum The Asian financial crisis of 1997–98 was a huge turning point in Asia. Asia’s confidence in the IMF and the US leadership to help through global institutions in a time of crisis was seriously shaken. The disillusionment was deepest in Tokyo, Seoul, Bangkok and Jakarta — Beijing was then an innocent … Continue reading

Venezuela Exported 36 Tonnes Of Its Official Gold Reserves To Switzerland In January

By Koos Jansen, BullionStar Switzerland has net imported 35.8 tonnes of gold from Venezuela in January 2016. This unusual high tonnage must be gold from the central bank of Venezuela – Banco Central de Venezuela (BCV) – that has been swapping metal with banks or simply sold it in the open market. Remarkably, after Venezuela repatriated 160 tonnes in … Continue reading

China’s 3 Trillion Dollar Mistake

By Eugen von Böhm-Bawerk When looking at the current state of the Chinese economy it is important to note what happened leading up the ongoing predicament. By managing the USD/CNY exchange rate the Chinese factory worker was essentially funding excess consumption in the United States. One of the many perks enjoyed by global reserve issuer. The … Continue reading

China Will Likely Have To Impose Capital Controls: Societe Generale

China — the world’s largest holder of foreign exchange reserves (forex reserves) — will likely need to impose capital controls as its forex stockpile will not be sufficient to defend its currency, the yuan, Societe Generale (SocGen) says, Bloomberg reports. According to SocGen’s Jason Daw, if 65 million Chinese residents — approximately 5 percent of its population — each withdrew the maximum allowed $50,000 this would erase around $3.3 trillion … Continue reading

De-Dollarization: Global Yuanization Is One Step Closer, Thanks To London

The Government of China promotes the internationalization of “the people’s currency” (‘renminbi’) through a policy of alliances that does not take ideological barriers into account. In a first moment the diplomatic forces of the yuan were concentrated in the Asia-Pacific, but in a second moment, it became necessary to gain the support of the West. … Continue reading

EM Slowdown: Three Ways Latin America Is Fighting Back

By Anders Borg The IMF and World Bank meeting in Peru’s capital Lima could not have come at a more appropriate time and place. The recovery in the global economy is slower than most people have expected. Increased uncertainty about the growth model in China, lower commodity prices and market pressure building up ahead of rate … Continue reading

Russia, China Continue To Stockpile Gold In Preparation For Post-Dollar International Monetary System

By Koos Jansen, BullionStar The People’s Bank Of China (PBOC) has added 16 tonnes of gold to its official reserves now totaling 1,694 tonnes in August 2015. The gain in August is the third monthly increment in a row after a period of silence by the PBOC since 2009. The change in reporting, the amounts reported, and the fact the … Continue reading

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