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☆ How Trump could exploit a looming global struggle for rare-earth minerals
▼ + stars: | 2024-11-12 | by ( Tom Porter | ) www.businessinsider.com time to read: +7 min

The power grab over rare-earth minerals in Central Asia could be among the issues he will seek to exploit. AdvertisementA power struggle over rare-earth mineralsAt stake for the US in Central Asia is not just political power but access to the region's reserves of rare-earth minerals such as uranium, lithium, and tantalum. Rare-earth minerals are needed to make all sorts of products, from F-35 stealth fighters and smartphones to internet fiber-optic cables and MRI machines. It produces around 60% of the world's rare-earth minerals and processes nearly 90%, according to the Center for Strategic and International Studies. "There are rare-earth minerals worth exploring/exploiting, and if the US/EU could strike a major deal with [Kazakhstan's capital] Astana, this would certainly contribute to breaking China's monopoly," said Wolff.

Persons: Donald Trump, —, Vladimir Putin, Xi Jinping, Xi, Putin, he'd, Wilder Alejandro Sánchez, ALEXANDER RYUMIN, Emmanuel Macron, Olaf Scholz, John Herbst, Stefan Wolff, Wolff, Herbst, Trump Organizations: Service, Putin, The Republican, Biden, Getty Images, Center for Strategic, International Studies, University of Birmingham, BI, Trump, EU, Astana, Central Asia Summit, Getty Images Central, Central, China Locations: Russia, China, Central Asia, Mongolia, Saudi, Getty Images China, Kazakhstan, Uzbekistan, Xian, Shaanxi, FLORENCE, Ukraine, Soviet Union, Washington, Moscow, Beijing

☆ The biggest threat to the US dollar is America's exorbitant debt load, JPMorgan says
▼ + stars: | 2024-09-17 | by ( Filip De Mott | ) www.businessinsider.com time to read: +4 min

One of the main takeaways was that the biggest threats to dollar dominance are swelling US debt levels and fiscal deficits, which officials in Washington could step up to tackle. "The biggest challenge to US dollar dominance is the US itself given the mounting public debt levels and elevated fiscal deficits," JPMorgan said, in a note summarizing the webinar. For instance, many alarmists have focused on the dollar's share in foreign reserve holdings, often pointing out that the foreign central banks have piled into gold as an alternative. But this fixation omits the fact that bank deposits, sovereign wealth fund assets, and other dollar instruments have been on the rise among reserve holdings, JPMorgan said. "In China's case, it has had an explicit target to bring down dollar holdings in FX reserve but has shifted USD holdings to state-owned entities.

Persons: —, Peter G, Mark Sobel —, Trump, Sobel Organizations: JPMorgan, Service, US, Peterson Foundation, Treasury, Monetary, Financial, greenback Locations: Washington, China

☆ Gold and some non-dollar currencies start to shine, but it's not all about de-dollarization
▼ + stars: | 2024-08-02 | by ( Huileng Tan | ) www.businessinsider.com time to read: +5 min

AdvertisementThe amount of gold holdings in global reserves has doubled in just over five years, according to Bloomberg Intelligence analysis. "As the yellow metal carries no credit or counter-party risk, some deem it as being better insulated from financial sanctions, particularly those from the emerging world," wrote UBS' Czerwonko. Advertisement"The situation in competing jurisdictions is also dire; in the land of the blind, the one-eyed man can remain king," wrote Czerwonko. AdvertisementSimilarly, Bloomberg Intelligence said said a Wednesday report that a potential second Trump term could hasten a global currency regime change. "Any title toward isolationism in a Trump second term, such as altered US attitudes toward its role in NATO and international affairs would spur de-dollarization," wrote Bloomberg Intelligence analysts.

Persons: —, Alejo Czerwonko, Czerwonko, Trump Organizations: Service, UBS, Business, International Monetary Fund, Bloomberg Intelligence, Trump, NATO Locations: Ukraine, Moscow, Swiss, Americas

☆ More rich countries worried about the dollar want to buy gold
▼ + stars: | 2024-06-20 | by ( Huileng Tan | ) www.businessinsider.com time to read: +1 min

Central banks from advanced economies plan to buy more gold, according to a World Gold Council survey. Meanwhile, central banks expect the US dollar's share in global reserves to fall in the next five years. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . Even central banks from advanced economies are planning to load up on gold, according to a World Gold Council survey released on Monday. This story is available exclusively to Business Insider subscribers.

Persons: —, they're Organizations: Gold, Service, Business Locations: China

☆ De-dollarized payment systems are cropping up. Here's why they're unlikely to dent greenback dominance.
▼ + stars: | 2024-06-04 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The emergence of new regional payment systems likely won't spur de-dollarization, OMFIF said. According to commentary published Thursday, obstacles are already afflicting new regional payment systems, even as de-dollarization rhetoric creeps up. AdvertisementMeanwhile, efforts to assemble regional financial systems have delivered the Pan-African Payment and Settlement System, OMFIF cited as one example. For instance, it's even launched its own payments infrastructure, the Cross-border Interbank Payment System. But China's efforts to create an alternative system are a defensive ploy for now, OMFIF wrote in a separate note from May.

Persons: OMFIF, —, Julian Jacobs, it's, That's, Zoe Liu Organizations: Service, Monetary, Financial, Forum, United Arab, China, Foreign Relations Locations: China , Hong Kong, United Arab Emirates, Thailand, Russia, Ukraine, Beijing, Taiwan

☆ Why Exxon and Chevron are doubling down on fossil fuel energy with big acquisitions
▼ + stars: | 2023-10-25 | by ( Catherine Clifford | In Catclifford | ) www.cnbc.com time to read: +6 min

The largest oil and gas producers in the United States see a long pathway for oil demand," Cahill told CNBC. "There's a major difference between what the big oil companies believe the future of oil is and the governments around the world." "The large companies — nongovernment companies — do not see an end to oil demand any time in the near future. Oil and gas are relatively cheap and easy to move around, particularly in comparison with building new clean energy infrastructure. "By the way, that means the large financial oil companies will be able to weather that environment better than the smaller companies."

Persons: Cahill, Ben Cahill, Goldstein, Larry J, Birol, Fatih Birol, Shon Hiatt, Hiatt, Marianne Kah, Kah, Amy Myers Jaffe, Jaffe Organizations: CNBC, Center for Strategic, International Studies, Petroleum Industry Research Foundation, Energy, Research Foundation, Chevron, Exxon, International Energy Agency, IEA, USC Marshall School of Business ., Columbia University's Center, Global Energy, ConocoPhillips, New York University, Climate Justice, Sustainability, NYU's School, Professional Studies, Exxon Mobil Locations: United States, Africa, Asia, America, U.S, Russia, Venezuela, Iran

☆ Don't worry about dedollarization – the yuan has a 'paltry' share of reserves, so the buck is going nowhere, RBC says
▼ + stars: | 2023-10-10 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

The rival yuan doesn't pose a credible threat to the buck, strategist Alan Robinson said in a recent research note. "While China would like its renminbi to topple the dollar, that currency's share of global reserves remains a paltry 2.5%," he wrote. AdvertisementAdvertisement"We don't think any single currency is positioned to replace the dollar in the global reserve system," Robinson added. The greenback had a 59% share of global reserves at the end of the second quarter of 2023, per the IMF. The buck has clung onto its role as the dominant global currency despite China and Russia stepping up their efforts to undermine it since the Kremlin invaded Ukraine in February 2022.

Persons: Alan Robinson, —, Robinson Organizations: RBC Wealth Management, Service, Global, International Monetary Fund Locations: China, Russia, Kremlin, Ukraine, Beijing, Moscow, Russian

☆ US dollar share of global currency reserves stays flat in second quarter, IMF says
▼ + stars: | 2023-09-29 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +3 min

Claims in U.S. dollars rose 0.8% to $6.576 trillion in the second quarter, but were down 1% from a year earlier. The euro's share edged up slightly to 19.9% in the second quarter, from 19.8% the previous three months. The dollar index was up 3.1% in the second quarter, recovering from a 0.9% fall in the first quarter. The IMF data also showed the Chinese renminbi's share of currency reserves slipped to 2.4% in the second quarter from about 2.6% in the first. IMF data also showed total global reserves rose to $12.055 trillion in the second quarter from $12.028 trillion in the first quarter.

Persons: Michael Langham, Langham, Gertrude Chavez, Dreyfuss, David Gregorio, Chris Reese Organizations: International Monetary Fund, Canadian, Global, IMF, Thomson Locations: U.S

☆ Africa’s Vast Solar and Mineral Resources at Risk of Being Left Untapped, IEA Warns
▼ + stars: | 2023-09-06 | by ( Will Horner | ) www.wsj.com time to read: +6 min

Energy investment in Africa needs to more than double by the end of the decade if the continent is to meet its energy and climate goals. “Energy investment on our continent has fallen short,” wrote William Ruto, president of Kenya, in the report’s foreword. Photo: Lucien Kahozi/Bloomberg NewsAll of these are pushing up the cost of capital which makes many African energy projects financially unviable despite ample local resources and proven technologies such as wind or solar power, the report said. PREVIEWCurrently, 600 million people across Africa lack access to electricity and almost one billion have no access to clean cooking fuels. African nations are seeking redress for the effects of climate change they experience despite contributing little to carbon emissions, the main driver of global warming.

Persons: ”, Fatih Birol, simon maina, William Ruto, Lucien Kahozi, Will Horner, william.horner@wsj.com Organizations: International Energy Agency, African Development Bank, IEA, Agence France, West, “ Energy, Democratic, Bloomberg, Sustainable Business, Africa Climate Locations: Africa, Paris, ” Africa, China, Kenya, Democratic Republic of Congo, Ukraine, Nairobi

LONDON, Aug 23 (Reuters) - The United States and China may feel some financial detente is wise at this point - even if goading one another plays well domestically. But elements of the once-feared bind of 'mutally-assured financial destruction' (MAFD) still apply. Pulling the rug out from under either - battering U.S. and Chinese demand in effect - seems to make little economic sense at least. America had new markets and investments and a seemingly durable new creditor that kept borrowing rates low and consumption up. Falling China Share of Foreign US Treasury HoldingsChina FX Reserves vs Global ReservesUS Treasury Debt Climbs as Fed Pulls Back'MAFD'But is that where the situation has landed post-pandemic?

Persons: Larry Summers, Summers, Goldman Sachs, Jim O'Neill, O'Neill, Gina Raimondo's, Stephen Jen, Eurizon SLJ, Treasuries, Deepa Babington Organizations: U.S . Treasury Securities, ., Treasury, Foreign US Treasury Holdings China FX, Global Reserves, U.S ., Commerce, U.S, Reuters Graphics Reuters, Reuters, Thomson Locations: United States, China, Washington, Ukraine, Taiwan, Hong Kong, U.S, Beijing, America

☆ The dedollarization drive is facing a confidence crisis as the yuan, ruble and Argentine peso simultaneously plummet, an analyst says
▼ + stars: | 2023-08-20 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +4 min

Slumps in the ruble, yuan, and Argentine peso underscore how the US dollar is a more reliable currency, an expert told Insider. In the past week alone, the Chinese yuan, Russian ruble, and the Argentine peso plunged, forcing the countries' central banks to take drastic measures to calm markets. The Chinese currency fell Thursday to its weakest level this year amid investor anxiety over the deepening slowdown in the world's second-largest economy. Last month, Russian president Vladimir Putin said more than 80% of his country's trade with China is settled in the yuan and ruble. "The recent decline and volatility in the Chinese Yuan, the Russian Ruble, and to a lesser extent the Argentine Peso, will only add further challenges to the idea of de-dollarization," Zain Vawda, market analyst at DailyFX, said.

Persons: Slumps, Vladimir Putin, Yuan, Zain, Vawda, Paul Krugman, Larry Summers, It's Organizations: Service, Argentine, International Monetary Fund Locations: Argentine, Ukraine, Wall, Silicon, Argentina, Moscow, Beijing, Russian, China

☆ India just ditched the dollar and used its own currency to buy a million barrels of oil from the UAE
▼ + stars: | 2023-08-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

India bought 1 million barrels of oil from the United Arab Emirates using its own currency instead of US dollars. The Indian Oil Corp settled a payment in rupees with the Abu Dhabi National Oil Company. Nations including India, Russia, and other BRICS members have been pushing to de-dollarize. Monday's deal marked India's first crude oil payment to the UAE in rupees. Leaders from BRICS nations — a bloc that includes Brazil, Russia, India, China, and South Africa — have made a particular push for their own non-dollar currency.

Persons: Dedollarization, Stephen Jen Organizations: United, Indian Oil Corp, Abu, Abu Dhabi National Oil Company, Nations, Service, UAE, Eurizon Locations: United Arab Emirates, Abu Dhabi, India, Russia, Wall, Silicon, UAE, China, France, Israel, Brazil, South Africa, Argentina

☆ The Metals Company announces a controversial timeline for deep sea mining that worsens the divide in an already bitter battle
▼ + stars: | 2023-08-04 | by ( Catherine Clifford | In Catclifford | ) www.cnbc.com time to read: +12 min

It then went public in 2021 through a special purpose acquisition company, or SPAC, and is looking to establish deep sea mining as a business. "Voices against deep sea mining have never been so loud — from the fishing sector to financiers, indigenous peoples, scientists and big business." In addition, the findings of the study do not mean that Benchmark is endorsing deep sea mining, she added. Deep sea mining won't replace land-based mining, but rather will simply add another source of minerals, she said in March. Regardless, Singh says, there is a lot of work yet to be done by members of the council to establish regulations before any deep sea mining commences.

Persons: Gerard Barron, Carolyn Cole, it's, Amon, That's, Louisa Casson, Charlotte Selvey Miller, Miller, that's, Barron, Kannah, Pradeep Singh, It's, Singh, Allseas, — Organizations: The Metals Company, Los Angeles Times, Authority, ISA, Metals Company, Maersk, CNBC, Greenpeace, Company, Benchmark Mineral Intelligence, Benchmark, Democratic, PT Vale Indonesia, . Geological Survey, Metals, Mining, Darton Commodities, Afp, Getty, International Union for Conservation of Nature Locations: Clarion, San Diego, Norway, Mexico, United Kingdom, Texas, Canada, Indonesia, Russia, Democratic Republic of the Congo, Sorowako ., Amon, Kolwezi, Shabara, Congo, Pacific, Nauru, Tonga, Kiribati

☆ Welcome to the Dollar War: a Global Fight Over America's Economic Dominance
▼ + stars: | 2023-07-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +17 min

The US even reminded everyone just how influential the buck is when it effectively froze Russia out of the global financial system with sanctions last year. Becoming the issuer of the global reserve currency is about trust. The US has controlled the global reserve currency for 102 years — giving it a special status in the world economy. Still, given that the country controlling the global reserve currency holds that status of an average of 94 years, history seems to indicate it's high time for a successor. Why shouldn't the financial world resemble something closer to the mosaic of cultures, politics, and nations that exists today?

Persons: Chenzi Xu, there's, Xu, —, Ron Temple, Gregory Brew, Eurasia's Brew, dollarizing, Stephen Jen, Jen, we've, Stanford's Xu, Luiz Inácio Lula da Silva, Josh Lipsky, " Lipsky, It's, Alexander Wise, Jan Loeys, Loeys, dollarization, Wise, Lazard's Temple, isn't, Phil Rosen Organizations: Stanford, Federal, European Central Bank, People's Bank of China, Lazard, Publishing, Getty Images, International Monetary Fund, Bank of International Settlements, Eurasia Group, Sandman's, Eurizon, IMF, Atlantic Council, JPMorgan Locations: Russia, Israel, France, China, America, Saudi Arabia, Brazil, India, Pakistan, Bolivia, Iraq, South Africa, Beijing

☆ The weaponization of the dollar will reverse globalization and kill the WTO, it was warned. That's a real threat today as dedollarization gathers force.
▼ + stars: | 2023-07-14 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +6 min

US economic sanctions have spawned something of a global backlash, in the form of the dedollarization movement. This was anticipated as early as 2019, by an expert who warned the weaponization of the dollar could have serious consequences for the global economic system. Back in 2023, dedollarization is a thingFast forward to 2023, and some of the recent rumblings across the global currency and monetary landscape are strikingly in line with Sen's prognostications. All that could come at a huge cost to the global economy – and drive a "complete reversal of global economic integration," he wrote. The dollar's share of global reserves could slowly decline, but no alternatives exist that could completely displace the US currency, Treasury Secretary Janet Yellen said last month.

Persons: Julius Sen, Donald Trump, Sen, prognostications, Emmanuel Macron, Elon Musk, –, optimists, Paul Krugman, Janet Yellen, Putin Organizations: London School of Economics, Service, UN, SWIFT, Allianz, WTO, FX Locations: Wall, Silicon, China, Brazil, Iran, Tehran, Russia, Ukraine, India, Europe

☆ Dedollarization of global FX reserves? Not so fast, Allianz says
▼ + stars: | 2023-07-13 | by ( Joseph Wilkins | ) www.businessinsider.com time to read: +3 min

Recent moves led by China and Russia to challenge the dollar's global dominance has attracted much attention. But Allianz says the greenback's supremacy faces no serious threat, saying "any significant switch will take a long time to evolve". Dollar assets' unmatched liquidity and the private sector's heavy reliance on the greenback will support it over the longer term, according to the German financial services giant. But the greenback's status as the world's reserve currency faces no real threat for the foreseeable future, according to Allianz. The dollar still makes up almost 60% of all global reserves – while China's yuan accounts for just 3%, according to the International Monetary Fund.

Persons: Ludovic Subran, It's Organizations: Allianz, Service, International Monetary Fund Locations: China, Russia, Wall, Silicon, Argentina, Beijing

☆ China continues to de-dollarize reserves as gold stockpile climbs for 8th straight month
▼ + stars: | 2023-07-07 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

China's central bank added 23 tons of gold to its reserves in June, marking an eighth consecutive increase. Now, the People's Bank of China holds 2,330 tons of gold in its reserves, according to official data cited by Bloomberg. The gold stockpiling comes amid the country's bid to erode the dollar's global dominance as well as growing economic and geopolitical uneasiness. According to a World Gold Council report from May, 62% of central banks estimate that gold will make up a greater share of reserves in the next five years. At June's end, the central bank held $3.193 trillion.

Persons: — Organizations: Service, People's Bank of China, Bloomberg, Gold, Official Monetary, Financial, Forum, International Monetary Fund Locations: Russia, Ukraine, Moscow

☆ Treasury Secretary Janet Yellen says to expect a gradual decline in the dollar's share of global reserves, but greenback remains dominant
▼ + stars: | 2023-06-13 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Treasury Secretary Janet Yellen said to expect a gradual decline in the dollar's share of global reserves. "I would say there is virtually no meaningful workaround for most countries for using the dollar as a reserve currency," Yellen replied. "We should expect over time a gradually increased share of other assets in reserve holdings of countries — a natural desire to diversify," she said. The US dollar's reserve status has seen gradual erosion for two decades, and it saw a steep decline in 2022 even though its strength in international trade remains unchallenged, Eurizon SLJ Asset Management said in April. But US lawmakers aren't helping the dollar's cause, Yellen suggested.

Persons: Janet Yellen, —, Warren Davidson, Yellen, Vicente Gonzalez, aren't Organizations: Service, Financial Services Committee, Rep, US, Management Locations: Ohio, China, Texas, France

ORLANDO, Florida, May 15 (Reuters) - China's yuan faces significant long-term obstacles to becoming a global reserve currency of any great import, but the biggest challenge in the near term is the fact that nobody wants to buy Chinese bonds. Reuters ImageReuters Image"It is very hard to create a reserve currency, without attractive reserve assets. Exante Data's figures show foreign investors bought a net $558 billion of Chinese bonds between 2010 and 2021. But in a pool of $12 trillion global reserves, of which nearly 80% is denominated in dollars and euros, these are very small numbers. Reuters ImageRESERVE STATUSAny currency that has designs on attaining international reserve status must meet several criteria and fulfill several roles.

☆ Central bank gold demand hits first-quarter record, investments surge on U.S. banking turmoil
▼ + stars: | 2023-05-05 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

The process of crafting gold is seen at the Krastsvetmet company, one of the world's largest producers of precious metals in Moscow, Russia on January 31, 2023. Demand for gold among central banks notched a first-quarter record high in the three months to the end of March as overall global demand painted an otherwise "mixed picture," according to the World Gold Council. Total gold demand, however, was up 1% from the first quarter of 2022 thanks to a recovery in the OTC market. Louise Street, senior market analyst at the World Gold Council, told CNBC on Thursday that this was a continuation of trends that saw central bank gold buying soar to an 11-year high in 2022. The WGC expects demand among central banks to moderate this year after 2022's spike, though noted that where previous buying had been concentrated in developing markets, more developed financial centers were now increasing their demand.

☆ De-dollarization and global reserves dominance, explained by a top currency economist and the inventor of the 'dollar smile' theory
▼ + stars: | 2023-04-29 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Stephen Jen, CEO of Eurizon SLJ Eurizon SLJStephen Jen is a leading economist, the cofounder and CEO of Eurizon SLJ, and inventor of the "dollar smile" theory. Phil Rosen: You pointed out recently that the dollar saw a steep erosion in 2022 as a global reserve currency. More likely, we will evolve from a unipolar reserve currency world to a multi-polar world. Here's what he said on a potential "tripolar" reserve currency setup if the dollar loses dominance. And here are the top stories from markets this week:Lauren Simmons, a trader at the New York Stock Exchange.

Analysis of global central bank coffers does show the dollar's share of overall reserve holdings is gradually being chipped away - but the official sector is not selling dollar-denominated assets. In fact it's still buying them on aggregate, and the private sector is too. The overseas private sector was also a solid buyer of U.S. agency debt, further calling into question the narrative in some market quarters that the dollar's status as the world's preeminent currency is rapidly eroding. Jen calculates that the dollar's share of official global reserves slumped to 47% last year, down from 55% the year before and 73% in 2001. Including the private sector, total foreign inflows into Treasuries over the past two years have been substantial.

☆ The US dollar's outlook is complicated. Here's what to know about the currency's standing on the world stage.
▼ + stars: | 2023-04-18 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

The dollar's position as a top reserve currency, however, may be somewhat less certain. They pointed to Russia's invasion of Ukraine as a catalyst for the currency's drop-off as a reserve currency. "We believe the erosion of the dollar's reserve currency status has accelerated in recent years at an alarming pace," Eurizon said. Here's the takeaway forecasters seem to agree on: The dollar's losing some ground as a global reserve currency, but none at all as far as international trade. What's your outlook for the dollar's role on the world stage in 2023 and beyond?

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