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digital dollar

World economy 14th December 2022

Will the dollar lose its exorbitant power to the Euro or the RMB? Not just yet

Alicia García Herrero (Natixis) | The US dollar has officially ruled the international monetary system since the Bretton Woods Agreement in 1944. No other currency has been able to challenge the dollar notwithstanding the ups and down of the US economy both in terms of growth but also inflation. Notwithstanding its overall dominance, things are changing. This is particularly true for the waning share of the US dollar in the…

LexHoodguin

European economy 23rd November 2022

Netherlands Should Consider Euro Exit: Former Central Banker

Syp Wynia (Atlantic Sentinel) | The Netherlands should consider exiting the euro, argues Lex Hoogduin, a former director of the country’s central bank. Hoogduin, now a professor of financial markets at Groningen University, points out in an interview with Wynia’s Week that the nineteen countries that share the euro have broken almost all the rules they agreed in the 1990s, when the currency was introduced. High inflation and low interest…

dollar rally

World economy 3rd June 2021

The Dollar: From 71% To 59% Of Central Bank Reserves In 20 Years

Luis Alcaide | The world is gradually moving towards a multiple reserve system. In its latest World Economic Outlook, the IMF notes that when the euro made its appearance, the dollar accounted for 71% of foreign exchange reserves. In the last quarter of 2020, dollar reserves held by central banks had fallen to 59%, the lowest share in the last 25 years. The complaints in 1960 from the then French…

EU recovery fund

European economy 9th October 2020

A Resurgent Euro: Illusion Or Reality?

In the medium term there are reasons to believe that the euro should appreciate very gradually over the coming year, boosted by the reduction of EMU–US interest rate differentials and the increased demand for euros to acquire the new European asset known as coronabonds.

lagarde

European economy 19th March 2020

The ECB Takes The Lead In The Eurozone To Contain Economic Damage Of The Epidemic With A €750 Bn Programme

Philippe Waechter (Ostrum AM) | The ECB has just launched a new asset purchase operation worth 750 billion euros over the period up to the end of 2020 at least. The purchases will relate to public and private securities which are eligible for the asset purchase program (APP) previously implemented by the ECB. The weight of each state in this buying program will be that of each state in the capital of the ECB. The press release suggests a lot of flexibility in interpretation.

Spain inflation

Markets 19th February 2020

The Euro Suffers From Weaker Data

David Kohl, (Chief Currency Economist, Julius Baer) / US growth superiority continues for longer than expected. The economic headwinds caused by measures to contain the spreading of the coronavirus are stronger for the Eurozone than for the US and support safe-haven currencies. We have adjusted our 3-month euro forecast down while being slightly more constructive for the JPY.

euro area

Markets 1st April 2019

Will we see a modest recovery of the euro?

The inflation data for March will be the key publication of this week. With the market discounting a 0.1% drop in the main figure, Ebury analysts believe that a 1% inflation would be enough to drive a modest rebound in the euro from its current position.

Italy's economy entering a crucial period in its Euro membership

In Europe 20th September 2018

Italy’s Economy Entering A Crucial Period In Its Euro Membership

“The unifying factor in the Italian coalition of two disparate political parties is firm agreement on the flaws of the EU’s deficit limits, and the risk is that any conciliation with the EU fronted by the Minister of Economy and Finances Giovanni Tria may amount to nothing more than political expedience,” commented today Neil Mellor Senior Currency Strategist at BNY Mellon.