For a time, the demand for US dollars was satisfied by an increasing balance of payments shortfall, and foreign central banks accumulated more and
more dollar reserves.
Not exact matches
To keep the currency weightings of their
reserves steady, their demand for
dollars naturally increases the
more the greenback weakens.
Yesterday, foreign exchange
reserves data from the People's Bank of China showed holdings fell by
more than $ 512 billion in 2015 to stand at $ 3.33 trillion
dollars at year - end, the lowest level in
more than three years.
The implication is that China does not have control of its currency and must sell U.S.
dollars (the bulk of its
reserves) to keep the currency from weakening even
more.
Banks can expand their lending by about eight
dollars for every
dollar of their
reserve, so they make a lot
more money out of doing this than they do out of renting you vault space.
«I wouldn't be surprised to see
more interest in Canadian
dollar reserves,» said Dan Katzive, director of foreign exchange strategy at Credit Suisse in New York.
For much of my career I pretty much accepted the consensus, but as I started to think
more seriously about the components of the balance of payments, I realized that when Keynes at Bretton Woods argued for a hybrid currency (which he called «bancor») to serve as the global
reserve currency, and not the US
dollar, he wasn't only expressing his dismay about the transfer of international status from Britain to the US.
It seems
more likely Beijing would consider taking over foreign businesses, especially given its largest US$ 1.9 trillion foreign exchange
reserve in the world, and the appreciation of its currency by 9 % y - o - y against the US
dollar, or 40 % y - o - y against the Canadian
dollar, or over 20 % against both currencies since July 21, 2005 when the Chinese central bank allowed its RMB to float.
Some analysts think that China and Saudi Arabia have accumulated far
more gold than they're reporting and are accumulating still
more gold surreptitiously — China to hedge its
dollar foreign exchange surplus, Saudi Arabia to hedge both its
dollar surplus and the depletion of its oil
reserves — but that China and Saudi Arabia can't acknowledge this accumulation lest they spook the currency markets and devalue their
dollar surpluses before those surpluses are fully hedged.
The People's Bank of China has been selling US
dollar reserves at an alarming rate to maintain an orderly devaluation, and there is a
more - than - trivial risk that it loses control should pressures continue to intensify.
Regular folks like you & me are going nuts with these things — renting a traveling petting zoo,
reserving private time at a water park, a block party complete with a DJ spinning kids» music — and these fandangos are costing hundreds of
dollars or
more!
China alone has a Forex
reserve of over 3 trillion $, which is 1 trillion
dollar more bigger than GDP of U.K. or France.
It is alleged that ruble is only a shadow of
dollar because the central bank is allowed (by the USA) to issue only as much rubles as they have
dollar reserves on the US accounts, so that ruble is the «colonial
dollar» and nothing
more.
Mayor Bill de Blasio and City Council Speaker Melissa Mark - Viverito announced a $ 82.1 billion budget agreement for Fiscal Year 2017 at City Hall Wednesday afternoon, putting millions of additional
dollars towards summer youth jobs, libraries and seniors while securing
more money for the city's
reserve fund and the citywide savings program.
A downgrade of U.S. debt will mean the end of the U.S.
Dollar as a
reserve currency and
more broadly the end of the world as American's have come to know it in the Post-World War II Era.
And if you are traveling with a group, you might be able to
reserve a smaller dorm room for added privacy and only a few
dollars more.
The title is
reserved for anyone who has
more than a million
dollars net worth or for those earning $ 100,000 and
more.
He raised taxes at a time when the average family was near or in starvation mode, he confiscated all of the nation's privately - owned gold and then promptly devalued the
dollar by 40 % (reducing the buying power of any saved
dollars by almost half overnight), he raised bank
reserve requirements numerous times (taking yet
more cash out of the real economy so it could be hoarded in vaults), he actively supported a trade war with tariffs that created massive global imbalances (some would argue ushering in the rise to power of fascist regimes that would have had no chance in times of prosperity), and perhaps most damning, rather than plowing most of those raised tax
dollars back into the stalled economy, he instead bought gold on the global markets for the government and sequestered it, keeping it from backing new
dollars (monetary expansion, which most understand is required to turn a recession around) and instead further crushing the economy — and not just the US economy.
We think that any fair
reserve clause must include limits, both for the
dollars that may be withheld (no
more than, say, 20 % of royalties) and the length of time the clause may remain in force (say, one year).
Even for insurance carriers with tens of billions of
dollars in claim
reserves and the right reinsurance, that's still
more exposure than is prudent for a company to take on.
Basically, the lower interest rates are, the
more cash or
reserves («base money») people are willing to carry around, per
dollar of nominal GDP.
At a 10 - year Treasury yield of 1.7 %, interest on
reserves of 0.25 %, and a monetary base now at about 18 cents per
dollar of nominal GDP (see Run, Don't Walk), further purchases of long - term Treasury securities by the Fed would produce net losses for the Fed in any scenario where yields rise
more than about 20 basis points a year, or the Fed ever has to unwind any portion of its already massive positions.
The main question here is the demise of «Bretton Woods II» where the rest of the world uses the US
Dollar as the main reserve currency, while the US continues to debase the dollar through the issuance of more dollar c
Dollar as the main
reserve currency, while the US continues to debase the
dollar through the issuance of more dollar c
dollar through the issuance of
more dollar c
dollar claims.
What exactly does the
dollar being a
reserve currency have to do with American stocks being a
more stable choice?
However, I would note the
more recent revival of mercantilism & a new willingness of many countries to diversify into real assets (rather than currencies / bonds)-- this could pose a new and
more substantial / elevated risk of decline for the
dollar as a
reserve currency (vs. the historical example of sterling).
Ever since the Bretton Woods agreements — the accords after the Second World War which bequeathed the architecture for the modern international financial system — America's trading partners have been left to cope with the impact of Washington's control and, in
more recent years, the hegemony of the
dollar as the dominant global
reserve currency.
The Village Builder status is
reserved for special contributors who make a pledge to support French Bulldog Village with a monthly gift of $ 25
dollars or
more.
You can
reserve your carry - on and first checked bag online after booking (up to 24 hours before departure) for a few
dollars more per bag.
There is a reason even the communist Chinese are talking about not using the
Dollar as a
reserve currency any
more.
The World Bank Group continues to invest in exploration for new fossil fuel
reserves despite clear signs that we already have far
more fossil fuels than we can afford to burn, and over the last five years, the World Bank Group's total fossil fuel finance has trended upwards, with finance into the billions of
dollars nearly every year.