Signs of de-dollarization increased
June 6, 2023 10:24 amVideo
Latest News
- Forecast for EUR/USD on April 29, 2024 April 29, 2024
- Forecast for GBP/USD on April 29, 2024 April 29, 2024
- Forecast for USD/JPY on April 29, 2024 April 29, 2024
- Key events on April 29: fundamental analysis for beginners April 29, 2024
- Trading plan for GBP/USD on April 29. Simple tips for beginners April 29, 2024
- Trading plan for EUR/USD on April 29. Simple tips for beginners April 29, 2024
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
JPMorgan listed signs of emerging de-dollarization, citing the fastest tightening of the Fed’s monetary policy as the reason why BRICS countries (Brazil, Russia, India, China, and South Africa) are slowly moving away from dollar.
Strategists Mira Chandan and Octavia Popescu highlighted the dipping exchange rate of dollar, which was due to the decline in exports. According to the data, the tradable share of dollar is at 88%, while euro and the Chinese yuan are at 31% and 7%, respectively. JPMorgan estimates that the US share in exports will hit a record low of 9%, while China’s share will reach a record high of 13%. Dollar’s share in the global currency reserves of central banks also hit a very low level of 58%, while gold sprang up to 15%.
Although JPMorgan notes that the internationalization of the yuan is limited as CNY accounts for only 2.3% of SWIFT payments compared to 43% of dollar’s and 32% of euro’s, the topic of de-dollarization is gaining momentum this year. After all, former Goldman Sachs chief economist Jim O’Neill called on the BRICS bloc to expand and create a single currency, thus challenging the dominance of dollar. That is what the BRICS countries are currently working on.
But not everyone considers the hegemony of dollar a threat, as according to Bloomberg, Kristalina Georgieva, the managing director of the International Monetary Fund, stated that she does not see rapid changes in US dollar reserves.
However, if the US continues to print money and reduce purchasing power, it will lead to fundamental changes in global reserves. For some time, US government spending has exceeded income, and more countries are choosing to buy gold for diversification.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: