Fort Washington Investment Advisors, Inc.’s Post

Alongside the BRICS de-dollarization plans, the Chinese yuan has officially overtaken the US dollar as the top traded currency in Russia. Indeed, the currency has now surpassed the greenback as the most prominent foreign exchange in Moscow according to a Reuters report. The data shows that the yuan has accounted for more than 42% of currency trades in Russia. Alternatively, that figure outshines the US dollar share of 39.5%. Moreover, the figures show that the trading volumes for the yuan had tripled to reach $385 billion in 2023.

It's a paradox and a conundrum at the same time when observing Ringgit ending lower than many other currencies. The main reason given by our experts is over the concerns of bleak global economic outlook. Ringgits losing ground on Euro, Pounds, Japshese Yen and even with Thai Baths and the Phillippines Peso are rather puzzling indeed. We know the economies of UK and EU are badly affected by Russian-Ukraine war amid worsening concerns of high inflation and unemployment. Since Brexit, UK is even worse of. Yet we see their currencies getting stronger and than ours. Our economic fundamentals are strong or are we not. BNM or Ministry of Economy could give a good explanation as to why this is happening. Statistics showed we are okay with our trade and investment performance and inflation including unemployment are not big issues either. Region-wise our economy is a much better performer and stronger than our neighbours. Hence the reasons putforth by our local experts are not convincing enough. "Pelik tapi benar" ( puzzling and yet true).

Strength in the Chinese yuan and Japanese yen is leading the next leg lower in the dollar at the start of the week. https://loom.ly/Xx4Z56Q #usdollar #usd #US #yuan #CNY #China #yen #JPY #Japan #fxmarkets #financialmarkets #foreignexchange #fxtraders

The #Bidenadministration has joined with #Japan and #SouthKorea in a bid to limit the dollar’s recent rise against #Asiancurrencies after days in which markets have been hit by shifting interest rate expectations. The three countries expressed their concerns as China also took steps to limit the impact of the dollar’s strength. Officials in the region fear weaker currencies could feed into higher inflation in import-dependent economies and reduce buying power. Japan’s top currency official, Masato Kanda, reiterated his country’s commitment to currency stability while speaking to reporters on the sidelines of the IMF and World Bank spring meetings in Washington. #FinancialMarkets #CapitalMarkets #USDollar #FX #FXTrading #Forex #ForexTrading #ForexMarkets #CurrencyMarkets #CurrencyTrading #Currency #USDollar https://lnkd.in/gQTzcmUM

The renewed advance in the US dollar is sending Asian currencies to multi-month lows and keeping the euro under pressure, while prompting authorities in Japan and China to step up defense of their beleaguered exchange rates. ##dollarexchange #USDollar #yen #foreigncurrency #China #japan #Bangladesh #TBSNews

Events in Asian currency markets this week illustrate why, in our view, the US dollar remains king of currencies, even with forecasts for the Fed to start cutting interest rates later this year. The Japanese yen slid to a 34-year low at near 152 per dollar, triggering an emergency meeting of Japan’s monetary authorities. #currency #markets #USdollar https://lnkd.in/ddP423cn

The dollar has been the world's reserve currency since World War II, but a combination of political and economic reasons is slowly chipping away at its supremacy. 1. US monetary policy holds too much sway over the rest of the world Some countries, including India, have said that they are sick and tired of US monetary policies holding them hostage — going as far as to say that the US has been an irresponsible issuer of the world's reserve currencies. 2. The strong USD is getting too expensive for emerging nations Brazilian President Luiz Inácio Lula da Silva has been one of the most vocal proponents of setting up alternative trade-settlement currencies, going as far as to egg on Brazil, Russia, India, China, and South Africa to move away from the US dollar. 3. Global trade and oil demand is diversifying — putting the petrodollar at risk The arrangement was formalized in 1945 when the oil-giant country Saudi Arabia and the US reached a historic deal wherein Saudi Arabia would sell its oil to America only using the greenback. But then the US became energy independent and a net oil exporter with the rise of the shale-oil industry. #Indonordicassociation(dot)org Indo Nordic Strategic Association, India https://lnkd.in/dNqSPQE5

The petrodollar is sinking internationally, while the U.S. government studiously ignores the warning signs. =========================== "Alongside the BRICS de-dollarization plans, the Chinese yuan has officially overtaken the US dollar as the top traded currency in Russia. Indeed, the currency has now surpassed the greenback as the most prominent foreign exchange in Moscow according to a Reuters report. The data shows that the yuan has accounted for more than 42% of currency trades in Russia. Alternatively, that figure outshines the US dollar share of 39.5%. Moreover, the figures show that the trading volumes for the yuan had tripled to reach $385 billion in 2023. ... Over the last year, the global perspective has shifted greatly. Specifically, the BRICS economic alliance has led to increased efforts to diversify its economic perspective. Subsequently, it has greatly affected the US dollar, and the trust in its continued status as a global reserve asset. Now, the BRICS alliance has continued to embrace that message, as the Chinese yuan has overtaken the US Dollar in Russian trade. Indeed, the former has edged out the greenback to be the primary foreign currency traded in Moscow. The development continues to showcase the interconnectivity of the economic alliance, and its embrace of its local currencies. ● Russia’s move away from the US dollar was originally borne out of necessity, derived from Western-imposed sanctions. ● Therefore, many of its BRICS allies rejected the currency alongside it, influenced by fear of relying on a currency that could be weaponized. ● However, that now appears to be a perspective shared globally. Throughout the year, Central Banks across the globe have increased gold acquisition and turned to digital asset developments. This has been a byproduct of US dollar fatigue derived from both its weaponization capability, and its fragility amidst macroeconomic circumstances. Conversely, both Russia and China have increased reliance on each other amid the growing prevalence of the alliance. In 2023, bilateral trade between the countries increased to $240 billion. Moreover, that was an increase of more than 26% from a year prior. This year should see that number only continue to grow." https://lnkd.in/g6jZ82WR