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Showing posts with the label monetary policy

US Dollar Value Falls as More Nations Choose Yuan: What’s Happening

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The US dollar value is tumbling further as global demand for the USD continues to plunge even more. As the American currency continues to project a wobbly price stance, nations have now started to pivot towards the Chinese Yuan, with China giving loans to nations in efforts to bolster the internationalization of its currency. Also Read: Strong US Dollar Is Dangerous: De-Dollarization Accelerates Worldwide Chinese Yuan as Loans: What’s Happening? Source: Thomas White / Reuters The world seems to have found a new way to protect itself from the US dollar volatility and onslaught. This new method involves the nations requesting Yuan-based loans in an effort to maximize their savings in the process. Kenya has become the latest example of this development, which is currently in talks with China for the same. “The moment we move from the US dollar to the renminbi, automatically, the interest rate reduces by almost half,” while adjusting the tenor of the loan would also benefit the countr...

China's Yuan-Backed System Threatens US Dollar in Historic Shift

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Yuan backed system developments are actually challenging the US dollar’s dominance right now through China’s strategic energy infrastructure and digital currency initiatives. Beijing is creating an electricity-based Yuan backed system that mirrors the petrodollar framework but uses renewable energy as the underlying asset instead. Also Read: SCO’s Tianjin Summit: 20+ Nations Embrace 80%+ Ruble-Yuan Trade Shift Yuan-backed stablecoins, China de-dollarization, AI, and EVs Reshape Global Finance Source: Watcher.Guru Energy Infrastructure Powers Yuan Backed System Strategy China’s de-dollarization efforts are being accelerated through massive energy projects that create new Yuan backed system dependencies. The Yarlong Tampoo mega dam in Tibet will generate around 300 billion kilowatt hours annually – that’s actually enough to power the entire United Kingdom and not only. Similar Yuan backed system projects are unfolding globally right now. In Laos, a $45 billio...

Central Banks Buying Gold From Domestic Miners in Local Currencies

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The World Gold Council published a report on Wednesday, highlighting that Central Banks around the world are buying the precious metal through small-scale domestic miners, paying in local currencies. They are turning to mines in their backyard, sourcing the yellow metal for its affordability and cheaper purchases. Securing gold directly from local miners is cheaper and also supports the home-based industries. Central Banks can bolster their gold reserves without weighing on foreign exchange rates. It saves them millions in exchange rates by sourcing the precious metal in local currencies. Also Read: Circle (CRCL) Stock Surges After House Passes Crypto Legislation Countries such as the Philippines and Ecuador have been doing this for years, and now other nations are following suit. Nineteen out of 36 countries in the World Gold Council report stated that they’re sourcing the metal from small miners in local currencies. Four other countries are considering making the switch and could mak...

3 Reasons the Dollar May Collapse Under Trump’s Rule

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Donald Trump had vowed to protect the US dollar, but it seems that his vow is failing catastrophically, considering the decline that the American currency has been noting in 2025. The US dollar has declined 10% this year, as Trump’s aggressive trade policies continue to rattle the global economies. Trump’s tariff regime indirectly gave birth to a renewed de-dollarization demand, sparking fears of a potential USD collapse. In the meantime, several other reasons are eroding trust in the US dollar. Here’s how Trump’s policies are eroding trust in the US dollar. Also Read: BlackRock Says Surging US Debt Could Fuel De-Dollarization 3 Major Reasons Why the US Dollar May Lose Its Reserve Crown Under Trump’s Rule 1. Acceleration of De-Dollarization Sentiment, Again Source: Deposit Stock Photo Trump has shown a keen interest in imposing several tariffs on nations that want to trade with the US economy. His tariff policy was meant to bolster the US economy, but the opposite has happen...

How the Fed’s latest decision could affect crypto markets in 2025

Bitcoin may have kicked off 2025 with a rebound back to $100,000, but since the release of the U.S. Federal Reserve’s December 2024 Federal Open Market Committee meeting on Jan. 8, the BTC/USD exchange rate dropped to as low as $91,220.84. Bitcoin has stabilized at around $95,000 since then, but concerns run high whether further news about the future direction of interest rates and monetary policy will result in an additional negative impact to the performance of Bitcoin and other cryptocurrencies. As cryptocurrencies have entered the financial mainstream, they have become increasingly sensitive to policy changes from the Federal Reserve. With this in mind, let’s take a closer look at the latest news from the Fed, and see what it could mean for the performance of both Bitcoins and altcoins in the months ahead. Why Cryptos Fell on The Latest Fed News As revealed in the aforementioned Fed meeting minutes, the central bank once again cut interest rates...