The United States is facing what is shaping up to be a perfect storm of economic bad news, with higher than normal energy prices and inflation compounded by a spiraling debt crisis and fears of economic turmoil amid high stakes debt limit talks. Meanwhile, BRICS nations are brainstorming a way to de-dollarize the international trade order.
Emerging market investors are slowly but steadily moving away from dollar-denominated debt and assets, instead preferring to park their hard-earned money into local currency bonds, an analysis by fund flow and asset allocation data provider EPFR Global has revealed.
According to the company’s figures, investors pulled out a net $2.65 billion out of primarily dollar-denominated assets between January and April of 2023, but added a net $5.23 billion into local currency bond funds.
Market analysts attribute the switch to attractive yields and falling inflation on local bond markets, and an increasingly unattractive dollar amid uncertainty surrounding interest rate-related volatility. The latter put a major dent in US Treasuries’ attractiveness to investors, and culminated in the collapse of Silicon Valley Bank in March, and panic among investors.
Fidelity International emerging markets debt portfolio manager Paul Greer expects the trend of weakened demand for dollar-denominated debt and assets to continue for the rest of the year. ABP Invest chief investment officer Thanos Papasavvas says there has been a “clear divergence between emerging market local and hard currency bonds [typically dollars and other major Western currencies, ed.] over the past few quarters with local currency debt looking more attractive on a fundamental and valuation basis.”
The trend of a cautious move away from the dollar, which continues to hold the coveted status of the world’s de facto reserve currency in trade, comes amid the growing risk of the US defaulting on its massive $31.8 trillion debt amid bickering between the White House and Republicans in Congress on federal spending and the debt limit.....More Below
Russian Foreign Ministry spokeswoman Maria Zakharova earlier said that the treaty provides for various forms of bilateral cooperation.
The comprehensive strategic partnership agreement between Russia and Iran has entered into force, Iranian Ambassador to Russia Kazem Jalali told Sputnik.
"It is already binding," Jalali said when asked about the date of entry into force of the agreement, as well as whether Iran had notified Russia of the completion of internal procedures.
He recalled that the treaty was ratified by both chambers of the Russian parliament, and Russian President Vladimir Putin signed it. At the same time, the document was ratified by the Iranian parliament, approved by the Guardian Council, and the president issued it as a law.
"Therefore, in both countries it currently has the form of a law and, naturally, has entered into force," Jalali said.
On January 17, Putin and his Iranian counterpart, Masoud Pezeshkian, met in Moscow to sign the Comprehensive Strategic ...
Defying the United States threats, ministers from more than 30 nations have packed Bogotá’s San Carlos Palace to charge the Israeli regime with genocide over its October 2023-present brutal military assault against the Gaza Strip.
The dramatic display of international solidarity saw dozens of high-ranking officials from across the globe convene inside the stately palace on Tuesday, determined to hold the regime accountable for, what they unequivocally called, a “war of genocide.”
The two-day emergency summit, organized under the auspices of The Hague Group -- a coalition co-chaired by Colombia and South Africa -- had representatives, ranging from such countries as Algeria and Brazil to Pakistan and Spain, in attendance.
The participants described the drive as a coordinated effort to stop the Israeli atrocities.
Behind closed doors, ministers and envoys, meanwhile, engaged in intensive sessions aimed at drafting collective measures to pressure the regime -- steps expected to be unveiled by ...
