Tag: Currencies

How Trump’s Game of Chicken With Iran Could Weaken the Dollar’s Role as the World’s Currency

By Marshall Auerback, a market analyst and commentator. Produced by the Independent Media Institute Ever since the dollar replaced gold at the center of the global financial system, many outside the U.S. have complained about “dollar hegemony,”and the “exorbitant privilege” conferred on the U.S. by virtue of this hegemony. What […]

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Is This Time Different? Examining Recent Emerging-Market Turbulence

By Dr. Marek Dabrowski, a Non-Resident Scholar at Bruegel, Professor at the Higher School of Economics in Moscow, co-founder and Fellow at CASE – Center for Social and Economic Research in Warsaw and Member of the Scientific Council of the E.T. Gaidar Institute for Economic Policy in Moscow. Originally published […]

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Cryptocurrencies: Financial (In)stability and (Un)fairness

By Jon Danielsson, Director of the ESRC funded Systemic Risk Centre, London School of Economics. Originally published at VoxEU Cryptocurrencies are controversial.  Advocates see them as a better form of money that imparts freedom, useful economic functions, fabulous riches and hedges against bad government policies. The sceptics worry about investor protection […]

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Lira rallies as Turkey pledges spending cuts to avoid IMF bailout

Turkey’s finance minister sparked a recovery in the lira after he addressed thousands of international investors, pledging to protect beleaguered local banks and cut public spending to prevent the country defaulting on its loans. Berat Albayrak, who has faced criticism for failing to tackle the country’s growing financial crisis, spoke to around 6,000 investors on […]

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Turkish lira crisis: Turkey raises tariffs on US goods – business live

Artjom Hatsaturjants, research analyst at Accendo Markets, says investors are nervous over the “geopolitical back-and-forth between US and Turkey”. Neither side appears ready to back down over recent confrontation that sent the Turkish lira to new lows and raised a spectre of FX contagion across Europe. The turmoil in Turkey is testing stock market morale […]

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Erdoğan’s high-risk path is surely leading Turkey to the IMF | Nils Pratley

There is not an easy way for Turkey to escape its financial crisis but three measures that might contain the coming pain would be these. First, raise interest rates to try to put a floor under the plunging lira. Second, tone down the bellicose rhetoric and certainly don’t pick new fights with the US. Third, […]

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How serious is Turkey’s lira crisis and what are the implications?

How serious is Turkey’s crisis? Bad and getting worse by the day. Over the past five years, Turkey’s growth has been virtually keeping pace with that of China and India but it is now displaying the classic signs of overheating: a large trade deficit, a construction boom and soaring debt. Financial markets have taken fright […]

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ECB Fears Contagion from Turkish Lira Collapse, Bank Stocks Plunge

Yves here. Apparently some Fed insiders have been arguing for more measured rate increases due to the fact that hot money exiting risking emerging economies could put them in a world of hurt, witness that Argentina and Pakistan have gone tin cup in hand to the IMF. But Turkey sits in a critically important location, […]

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Brexit fears hit the pound, as Russian sanctions send rouble sliding – business live

The Observer did a guide to holiday money which is worth looking at, especially as travellers will want to maximise their spending power as the pound continues to wobble. Here’s the guide: The mini-revival in the pound – up 0.04% against the dollar to $1.2883 and 0.21% higher against the euro at €1.1116 – could […]

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Pound edges higher while oil rises as Iran sanctions restart – business live

US markets are expected to open higher: IGSquawk (@IGSquawk) US Opening Calls:#DOW 25580 +0.30%#SPX 2855 +0.17%#NASDAQ 7453 +0.18%#IGOpeningCall August 7, 2018 The VIX index – a measure of the stock market’s expectation of volatility – is heading lower. It is currently down 2% at 11.03 having earlier fallen to 10.9, the lowest level since January. […]

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Bank of England raises UK interest rates to 0.75% – business live

I mentioned earlier this morning that Mark Carney was known as the ‘unreliable boyfriend’ for failing to stick to his promises. Calum Bennie, savings specialist at Scottish Friendly, thinks the governor has turned over a new leaf by raising rates today: “Today’s rate rise means that Mark Carney has probably shaken off his tag of […]

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Michael Hudson: Argentina’s New $50 Billion IMF Loan Is Designed to Replay its 2001 Crisis

Yves here. In this Real News Network interview, Micheal Hudson explains why IMF “programs” inevitably hurt workers. SHARMINI PERIES: It’s The Real News Network. I’m Sharmini Peries, coming to you from Baltimore. For several months now. Argentines have been taking to the streets to protest against neoliberal austerity measures of President Mauricio Macri. The most […]

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Argentina 20 Years On: Has the IMF Really Changed Its Ways?

By Gino Brunswijck, Maria Jose Romero and Bodo Ellmers of The European Network on Debt and Development (Eurodad). Originally published at TripleCrisis Argentinians are experiencing deja-vu this month as the government announces massive layoffs and a hiring freeze as part of an adjustment package attached to a loan from the International Monetary Fund (IMF). Thousands […]

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Markets edgy as G20 warns that trade disputes threaten global economy – business live

The oil price is creeping higher, following Donald Trump’s blast towards Iranian president Hassan Rouhani a few hours ago. It’s a fairly modest rally, though; Brent crude is up almost 1% at $73.72 per barrel, which doesn’t suggest the markets are pricing in a new conflict in the Middle East. Arnaud Masset of Swissquote Bank […]

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Pound hits 10-month low as UK retail sales fall unexpectedly – business live

The World Cup and the long sunny spell brought cheer to some shops, but gloom to others, says Andrew Westbrook, head of retail at RSM. He explains: With record breaking weather and the England team making a stunning start to the World Cup, you might have expected the feelgood factor to translate into bumper retail […]

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Markets shrug off trade fears but pound falls on Trump Brexit comments – business live

The pound continues to slip against the dollar as investors weigh up Donald Trump’s inflammatory comments about Theresa May’s Brexit proposals meaning no UK-US trade deal. It is currently down 0.64% at $1.3119, after hitting a low for the week of $1.3117. Fiona Cincotta, senior market analyst at City Index, said: US President Trump has […]

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