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
Tehran has vowed retaliation for the “savage” attack by Israeli and US “aggressors”
Over 100 students have been killed and dozens injured in an Israeli airstrike on a girls’ primary school in the city of Minab, in southern Iran, according to the country’s news agency Tasnim. The attack comes amid ongoing airstrikes on the Islamic Republic by Israel and the US.
Israel launched what it described as a pre-emptive operation against Iranian military and nuclear-related targets on Saturday, saying the strikes were aimed at neutralizing threats posed by Iran. US President Donald Trump later said Washington was joining the operation, citing the failure of nuclear diplomacy as a direct trigger for the renewed bombing.
One of the strikes reportedly targeted an elementary school in the city of Minab, killing at least 108 students and leaving 92 others injured, according to local officials.
READ MORE: US-Israeli attack on Iran plunges Middle East into chaos: LIVE UPDATES, VIDEOS, PHOTOS...
Iranian forces have retaliated against American-Israeli attacks by targeting Washington’s military bases across the region
The US has suffered 200 casualties in Iranian retaliatory strikes on bases across the Middle East, the Islamic Revolutionary Guard Corps (IRGC) has claimed.
Backed by the US, Israel launched what was described as a preemptive operation against Iranian military and nuclear-related targets in the early hours of Saturday, claiming the strikes were aimed at neutralizing threats posed by the Islamic Republic in the region.
US President Donald Trump later confirmed that the White House had supported West Jerusalem in conducting the strikes, citing the failure of nuclear diplomacy as a direct trigger for the move.
“As a result of missile strikes on American bases, at least 200 US military personnel were killed and injured,” the Tasnim news agency reported Saturday, citing a statement by the IRGC.
Commenting on the retaliation, IRGC General Ebrahim Jabbari warned ...
