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Currency wars

This Month

There’s a sovereignty risk: if stablecoin infrastructure in Australia becomes dominated by foreign-issued tokens operating on foreign-controlled digital rails, the Reserve Bank’s ability to manage liquidity and maintain financial stability could be compromised.

The digital currency quietly taking over the global financial system

In an era where economic statecraft increasingly involves payment systems and financial sanctions, control over monetary infrastructure carries geopolitical weight.

May

Payments group OFX was sitting on confidential when its shares ran on Monday morning. Its results on Tuesday were worse than expected, leaving fund managers scratching their heads.

The curious case of a dubious result that scorched investors

If OFX’s results fell off the back of a truck, they were either the wrong set of numbers or landed in the hands of an idiot.

Warren Buffett (right) on the weekend he announced his retirement. He wasn’t afraid to admit to mistakes.

Warren Buffett idea that will never catch on

The legendary investor agrees with Donald Trump on the US trade balance, and has a market-based plan to fix it. But economists say it’s unlikely to become reality.

The dollar is losing its lustre as the world’s reserve currency.

How the US lost its stranglehold on global reserve currency status

We may well be having an “economic moment” where the American dollar goes the way of the pound before it.

Is America about to nuke its own currency?

Although the dollar’s role as the world’s leading reserve currency plays a part, it is just one of many factors contributing to the US’ persistent trade deficits.

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April

Bullock was right about Australia’s shock absorber against US tariffs

Last week, the RBA governor said the exchange rate would be an important “buffer” in Trump’s trade war. It is what economists call it an “automatic stabiliser”.

March

The ‘protection racket’ theory that explains Trump’s economic strategy

There is one framework for understanding Donald Trump’s economic agenda. Its aim is to reset the global financial and trading system.

January

Winners and losers from the Aussie dollar’s near five-year low

There’s something strange going on with the currency. Expect expensive overseas trips, takeover activity, more foreign buyers in the real estate market and a federal budget boost.

December 2024

Andrew Boak at Goldman Sachs is tipping an Australian rate cut in February.

This US bank makes a bold call on the $A

The Australian dollar dropped below US64¢ last week, yet the investment giant says it’s time to offload the strong US dollar instead.

October 2024

The basic reason for AUD mispricing has been that relative interest rates in Australia were set too high, and too low.

Erratic Aussie dollar a factor in the RBA’s missed inflation targets

Over the past decade, the central bank’s policy choices have led to exchange rate levels that have made inflation challenges harder, not easier.

July 2024

Fines now apply for tourists seeking unwanted photos of traditional geishas in Kyoto.

Alarms, double prices: Japan is getting fed up with foreign tourists

Angst is rising in Japan over what locals are calling an “over-tourism crisis” – and some towns are taking action.

May 2024

The yen this week dropped to its lowest level in more than two decades against the US dollar.

Why anger is rising over Japan’s ‘dangerously’ weak yen

Ryohei Kim is furious at the Bank of Japan because of the record-low yen and the impact it is having on his beloved video games.

April 2024

Asian currencies are hurting agianst a strong USD.

Are we about to witness a rerun of the Asian financial crisis?

Investors are becoming increasingly alarmed as buoyant economic activity and high interest rates in the US risk triggering renewed instability across Asia.

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How long before the yen is again a safe-haven bet?

If inflation remains positive and interest rates continue to rise, the yen is likely to eventually strengthen.

It’s only a matter of time before China joins Japan in competitive currency devaluations,

Are we on the brink of an Asian currency war?

As tensions over China’s push into high-tech manufacturing flare, analysts warn that it’s only a matter of time before China follows Japan’s lead in competitive currency devaluations.

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December 2023

‘Bleeding sore’: Why the $A float 40 years ago was such a big deal

It took a lot of nerve to cut the Australian dollar loose, but former PM and treasurer Paul Keating says it was the moment the Australian economy grew up.

October 2023

After more than four years building Koala, co-founder Dany Milham left the business in 2021 to start Milkrun.

FX firm ‘significantly overcharged’ start-up Koala, ex-staffer alleges

Foreign exchange trader Convera overcharged mattress company Koala and demanded the will of late music industry legend Michael Gudinski, a new claim alleges.

August 2023

South African President Cyril Ramaphosa delivers his opening remarks at the BRICS Summit in Johannesburg.

Six new countries to join BRICS as group seeks to counter G7

Saudi Arabia, Argentina, Egypt, Ethiopia, Iran and United Arab Emirates will become full members of the BRICS group in January.

Brazilian President Luiz Inacio Lula da Silva, Chinese President Xi Jinping, South African President Cyril Ramaphosa, Indian Prime Minister Narendra Modi and Russian Foreign Minister Sergei Lavrov at a BRICS summit in Johannesburg this month.

Bric set to rival US dollar as the world’s new dominant currency

Russia wants Brazil, India, China, and South Africa to help create legal tender that could challenge the greenback in international trade.

July 2023

Banks will hate it, but tourists and expat workers will be cheering as new tech lowers FX fees across SE Asia, while fintechs compete to transform the world’s largest financial market.

Bye bye bank fees, as tech cuts out costly foreign exchange pain

Banks will hate it, but tourists and expat workers will be cheering as new tech lowers FX fees across SE Asia, while fintechs compete to transform the world’s largest financial market.

Original URL: https://www.afr.com/topic/currency-wars-1n4o