Category Archives: Currencies


G20 Focus on Quelling Currency War Unheeded

March 2nd, 2016 by

Things aren’t looking particularly good for the Chinese economy. Nonetheless, the country’s economic leaders are assuring the international community that the government will not engage in any further currency devaluation. Anxiety over Beijing perpetuating a so-called “Currency War” against its international counterparts has not effectively been quelled yet.

Source: Wall Street Journal

Bankers Want to Eliminate Large Denomination Cash

February 22nd, 2016 by

First it was the confiscation of all gold coins, followed by the retirement (demonetization) of silver coins. Each of these events led to federal governments around the world deeming their legal tender backed by bullion (typically called “gold certificates” and “silver certificates”) no longer valid. Now, governments are trying to do away with cash just […]


Iran’s “Euros Not Dollars” Demand Gains Steam

February 18th, 2016 by

In the latest news regarding Iran’s insistence that all international transactions (including oil sales) be conducted in euros, Brazil has become the first Latin American country to buy in to Tehran’s anti-dollar campaign. Iran is interested in Brazilian cars, trucks, jetliners, as well as replacement equipment for its refineries and oil wells. These sales would […]


War On Cash Intensifies

February 1st, 2016 by

Do you smell the smokey scent of burning paper? That’s the beginning of the impending War On Cash. A recent editorial that appeared on Bloomberg Business today boldly declares, “Bring On the Cashless Future.” In reference to the growing push for fully digital currencies to replace other forms of money, the editorial staff extols the […]


Lobbies Ensure $1 Bill Here To Stay

December 24th, 2015 by

Within the omnibus spending bill recently passed by Congress is the obscured Division E, Title I, Section 117, which prevents the U.S. Treasury Department from redesigning the one dollar bill. Despite the mostly cosmetic alterations to the $5, $10, $20, and $50 bills—color changes, added watermarks, etc.—the design of the one dollar bill has remained […]


What Happened To The Dollar Rally?

December 23rd, 2015 by

Contrary to expectations, the US dollar rally after the Fed’s first interest rate hike since 2006 has failed to materialize. Conventional wisdom held that an increase in interest rates would strengthen the dollar, especially as the other major central banks continued their stimulus programs. But the dollar is not responding to the rate hike as […]


South African Rand Collapse Boosts Miners

December 11th, 2015 by

South Africa is home to the highest-cost gold miners in the world, placing the country’s huge gold and platinum mining industries in peril due to persistently low metal prices. The country has been in turmoil in other ways as well, with a floundering South African rand and lack of government stability a common theme.


Yen, Yuan to Outperform Dollar in 2016?

December 8th, 2015 by

There is always a fair amount of buzz in the financial news regarding the imminent demise of the dollar—and rightly so. This is especially true in the long-run. The “reigning heavyweight champion” of fiat currencies is still, by and large, the world’s reserve currency of choice. However, there’s increasingly reason to believe that the USD […]


China Adds Gold; Yuan Expecting SDR Approval

November 30th, 2015 by

With all of the upheaval on its stock market and hand-wringing over the consistency of its currency’s value, China has nonetheless pushed forward with a two-pronged plan to shore up its financial system. Through a consistent program of adding gold to its reserves and following the prescriptions of the International Monetary Fund (IMF), it seems […]

dollar rally

Fed Bet Boosts Dollar

November 27th, 2015 by

The US dollar continued its rally today, crushing all comers. The euro is at a seven-month low of 1.0575 against the dollar this morning. EUR parity with USD becoming a more likely scenario as ECB president “Super Mario” Draghi announces he is going to feed the ECB’s quantitative easing program a yellow mushroom next week. […]


Forex Manipulation Target of Probe

November 23rd, 2015 by

The New York Attorney General’s Criminal Enforcement and Financial Crimes Bureau has opened an investigation into forex manipulation by four interdealer brokers who operate currency trading platforms. Subpoenas were served last week to Tullet Prebon PLC, BGC Partners, Inc, GFI Group, and TFS-ICAP Ltd. TFS-ICAP is a joint venture between ICAP Plc and Cie. Financiere […]

Dallas Farmer's Market

Gold Dragged Lower by Commodities

November 23rd, 2015 by

The global commodity markets are showing no signs of breaking out of their prolonged slump with more pressure from the dollar and unfavorable weather patterns around the world. (The weather may be a weak explanation for poor consumer spending—think last winter—but unavoidable as a factor influencing resource extraction.) The precious metals followed the broader commodities […]


Expect More Stimulus from the BoJ, ECB

November 20th, 2015 by

While even the most cautious observers think it’s all but certain that the Fed tightens monetary policy at its December gathering, what’s an even greater certainty is that central banks in Japan and Europe are planning to move even further in the opposite direction.


Yuan Set To Hit The Big Leagues

November 16th, 2015 by

The big news in currency markets this morning is the recommendation by a policy committee of the IMF that China’s currency, the yuan, be included in the Special Drawing Rights basket of currencies. Forex traders put the odds of the yuan’s inclusion in the SDR at the IMF’s November 30 meeting at around 80%. This […]

euro zone problem

Euro Falls On Dovish ECB Outlook

October 22nd, 2015 by

The European Central Bank (ECB) made its announcement from yesterday’s policy meeting this morning at 7:45 am, and the tone was certainly dovish. ECB President Mario Draghi repeatedly highlighted the merits of the central bank’s quantitative easing program that kicked off at the beginning of the year—even though, to date, the measure has produced virtually […]


CFTC Deems Bitcoin a Commodity

September 22nd, 2015 by

What is Bitcoin, exactly? For many months (that have now dragged into years), the international investing community has grappled with this question to differing degrees. While it is in essence considered by its proponents to be a “cryptocurrency,” or encrypted digital currency, the official status of Bitcoin has been laid out by the government: the […]


Global Currencies Mostly Steady Amid Jackson Hole

August 28th, 2015 by

Although it hasn’t been given much attention during the last month with all eyes on China’s economy and the Federal Reserve, the forex market is hardly immune from these developments in the global economy. There are even reason to believe that emerging market currencies now behave more closely to their developed market counterparts than not. […]


Kazakh Tenge Joins Emerging Market Currency Rout

August 20th, 2015 by

Kazakhstan’s currency, the tenge, took a 23% plunge on Thursday morning, joining the long list of emerging market currencies—from the Turkish lira to the Brazilian real—that have tanked so far this year. While the major world currencies of certain developed markets like the pound sterling and the euro have been largely steady, and others such […]

currency war

Is Yuan Devaluation a “Race to the Bottom”?

August 13th, 2015 by

There have been a number of analysts of the foreign exchange market (shorthand: forex) who in recent months have pointed out a troubling trend by central banks. Through extreme monetary tools such as quantitative easing, or “QE,” countries have been systematically devaluing their currencies in order to gain a competitive advantage in international trade. By […]


Yuan Suddenly Devalued by 2%: Is It (Currency) War?

August 11th, 2015 by

The Chinese government uncorked a shocker of a move today, when it suddenly devalued the renminbi (yuan) by over 1.9%. This is the largest drop in the value of China’s currency in over 20 years, causing global markets to reel. A continuing decline in exports and domestic demand apparently forced Beijing’s hand. While not officially […]